Symantec Management Discusses Q1 2013 Results - Earnings Call Transcript

Symantec (SYMC)

Q1 2013 Earnings Call

July 25, 2012 8:00 am ET

Executives

Helyn Corcos - Vice President of Investors Relations

Stephen M. Bennett - Chairman and Member of Compensation Committee

James A. Beer - Chief Financial Officer and Executive Vice President

Enrique T. Salem - Chief Executive Officer, President and Director

Analysts

Brad A. Zelnick - Macquarie Research

John S. DiFucci - JP Morgan Chase & Co, Research Division

Walter H. Pritchard - Citigroup Inc, Research Division

Adam H. Holt - Morgan Stanley, Research Division

Philip Winslow - Crédit Suisse AG, Research Division

Raimo Lenschow - Barclays Capital, Research Division

Aaron Schwartz - Jefferies & Company, Inc., Research Division

Robert P. Breza - RBC Capital Markets, LLC, Research Division

Michael Turits - Raymond James & Associates, Inc., Research Division

Gregg Moskowitz - Cowen and Company, LLC, Research Division

Steven M. Ashley - Robert W. Baird & Co. Incorporated, Research Division

Edward Maguire - Credit Agricole Securities (USA) Inc., Research Division

Daniel T. Cummins - ThinkEquity LLC, Research Division

Presentation

Operator

Good day, and welcome to Symantec's First Quarter 2013 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Ms. Helyn Corcos, Vice President of Investor Relations. Please go ahead, ma'am.

Helyn Corcos

Thank you. Good morning, and thank you for joining our call to discuss our first quarter results for fiscal 2013. With me today are Steve Bennett, Symantec's newly appointed Chairman, President and CEO; and James Beer, Symantec's Executive Vice President and CFO. In a moment, I will turn the call over to Steve. He will make a few opening remarks, then James will provide quarterly highlights and review our financial results, as well as guidance assumptions as outlined in the press release. This will be followed by a question-and-answer session.

Today's call is being recorded and will be available for replay on Symantec's Investor Relations website. A copy of today's press release and supplemental financial information are posted on our website. And a copy of today's prepared remarks will be available shortly after the call is completed.

Before we begin, I'd like to remind you that we provide year-over-year constant currency growth rates in our prepared remarks, unless otherwise stated. Earnings per share growth rates are provided on an as-reported basis only. We use our foreign currency rules of thumb in our guidance section for all constant currency year-over-year growth rates. For the June 2012 quarter, the actual weighted average exchange rate was $1.28 per euro and the end-of-period rate was $1.27 per euro, compared to the guided rate of $1.32. For the June '11 quarter, the actual weighted average was $1.44 per euro and the end-of-period rate was $1.45.

We've included a summary of the year-over-year constant currency and actual growth rates in our press release tables and in our supplemental information, which are available on the website. Some of the information discussed on this call, including our projections regarding revenue, operating results, deferred revenue, amortization of acquisition-related intangibles and stock-based compensation for the coming quarter contain forward-looking statements. These statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in the statement. Additional information concerning these risks and uncertainties can be found in the company's most recent periodic reports filed with the U.S. Securities and Exchange Commission. Symantec assumes no obligation to update any forward-looking statements.

In addition to reporting financial results in accordance with Generally Accepted Accounting Principles or GAAP, Symantec reports non-GAAP financial results. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to the most directly comparable GAAP results, which can be found in the press release and on our website. And now, I would like to introduce our CEO, Mr. Steve Bennett.

Stephen M. Bennett

Thanks, Helyn, and good morning, everyone. Thanks really for joining us at this rescheduled time. We apologize for the last-minute change but because of the announcement, we saw that was the right thing to do to make this change on short notice. So I'm really glad to be here on our earnings call and my first day on my new job.

The decision to replace Enrique was a tough one. It was not based on any particular event or issue but one that the board made after reflection on the ongoing company performance. While progress has been made over the last 3 years in many areas, it was the board's decision that making a change now was in the best interest of all of our stakeholders. Enrique has been a significant contributor during his 19 years at Symantec. Throughout his time and especially during his last 3 years as CEO, Enrique showed an incredible dedication to customers and strong enthusiasm to pursue new emerging opportunities. I want to recognize and thank him for his considerable commitment and wish him the best in the future.

My perspective is while the company has very strong assets, we are underperforming against the opportunities and I'm very excited about working with our leaders to speed up the pace at which we create value for all of our stakeholders. My first order of business will be to speak with our customers, partners and shareholders, and over the next 90 to 120 days I'm going on a tour to listen, learn and work with the leadership team to figure out the right strategy to leverage all of Symantec resources to accelerate our rate of value creation. Once this tour is completed, I'll share our go-forward strategy to win in the marketplace and how we're going to drive accelerated revenue and profit growth. This is a process I've used before many times in the past. It's been successful and I look forward to applying this similar playbook at Symantec. With that, I'll turn the call over to James to review the quarterly highlights and financial details.

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