This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Symantec CEO: 2Q Pain Spells Long-Term Gain

NEW YORK (TheStreet) -- Symantec (SYMC) CEO Steve Bennett says he underestimated the effects of the company's massive restructuring effort, which impacted the company's outlook this week. However, the Symantec chief remains confident in his turnaround plan for the software maker.

"We dug ourselves a hole in terms of new license bookings that we're going to have to take a couple of quarters now to dig our way out of," he told TheStreet, during a phone interview following Symantec's second-quarter results on Wednesday. "We're disappointed that we underestimated the impact, but we're convinced that it's the right long-term move for our company."

Bennett characterized the second quarter as the "toughest quarter" in his turnaround plan for Symantec, which was unveiled in January. This involved a complete shift in the company's sales coverage model -- whereas previously, salespeople were generalists selling about 150 different point solutions, now they sell either Information Management or Information Security products.

"It takes a while in these large enterprise accounts to build a pipeline, go meet your new customers," he said. "We were in the first quarter of people with new territories, and getting trained and doing a bunch of stuff to build this pipeline that we are optimistic that will start to deliver benefits in Q3 and Q4."

Must Read: Symantec Shares Tank on Tepid Guidance

Symantec also split its sales organization into renewals and new business teams during the quarter and Bennett pointed to management streamlining, which saw 35% of the firm's middle management positions eliminated.

"That obviously is a pretty significant move if you think about doing that and these territory changes, creating the renewals team," he said. "It's a lot of change at the same time, but I think it's way better than dribbling it and being in a transformation mode for two or three years."

On Tuesday Symantec reported revenue of $1.64 billion for the second quarter of its fiscal 2014, down 4% from the prior year's quarter, or 3% adjusted for currency. Analysts surveyed by Thomson Reuters had forecast sales of $1.685 billion.

Excluding items, the Mountain View, Calif.-based firm earned 50 cents a share, up from 45 cents in the same period last year. Wall Street was looking for earnings of 44 cents a share.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
SYMC $16.67 0.00%
AAPL $94.19 0.00%
FB $118.06 0.00%
GOOG $695.70 0.00%
TSLA $222.56 0.00%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs