Symantec ( SYMC) is feeling the heat from disappointing third-quarter results, although the IT security giant beat revised estimates. The company said Wednesday that it plans to reduce spending by about $200 million on an annualized basis in an effort to bring spending in line with revenue. Revenue for the third quarter ended Dec. 29 was $1.32 billion, up 6% over the comparable period a year ago, and slightly higher than
Symantec's lowered guidance of $1.29 billion to $1.31 billion. Net income for the fiscal third quarter was $248 million vs. Street expectations of $249 million and compared with $282 million for the same quarter last year. EPS at 26 cents beat consensus expectations by a penny. Shares of Symantec were recently up 41 cents, or 2.4%, to $17.89 in extended trading. Deferred revenue at the end of the quarter reached $2.49 billion, up 25% compared with the December 2005 quarter. "This says market based activities are solid and the fundamentals of the business remain strong," said CEO John Thompson. "But there's a change in how we are working with our customers." For the third quarter, Symantec's consumer business remained strong despite the threat from Microsoft's ( MSFT) consumer security product, Windows OneCare. Consumer business represented 31% of total revenue and grew 24% year over year. Services represented 4% of total revenue and grew 8% year over year, while Security and Data Management business represented 39% of total revenue and grew 3% from a year ago.