Symantec Reports Second Quarter Fiscal Year 2017 Results

Symantec Corp. (NASDAQ:SYMC) today reported the results of its second quarter of fiscal year 2017, ended September 30, 2016.

Greg Clark, Symantec CEO, said, "We have made remarkable progress in the short time that Blue Coat and Symantec have been combined. We completed the first phase of delivering our Integrated Cyber Defense Platform, our sales force is now enabled to sell the Company's combined portfolio, and our cost savings and synergy initiatives are tracking ahead of schedule.

"There's more integration work ahead, but I'm confident about our future. Since closing in August, we've brought to market two significant new solutions integrating the Data Loss Protection and Cloud Access Security Broker technologies and shipping Symantec Endpoint Protection 14. I'm particularly proud of the value we are providing our existing customers by integrating artificial intelligence with two of the largest threat databases in the world. This integration has improved our existing products which are now blocking an additional 500,000 attacks per day across the endpoint and network," Clark added.

Thomas Seifert, Symantec CFO, said, "Our Q2 results exceeded guidance on all metrics including both our Consumer Security and Enterprise Security segments, and we have realized more than $100 million of our planned $550 million cost savings and synergies. With the notable progress we're making in improving our cost structure and integrating Blue Coat, we are on track to achieve the cost efficiencies and synergies to which we guided by the end of fiscal year 2018 while maintaining a strong investment in our product road map and R&D."

Results for the Second Quarter of Fiscal Year 2017 (Dollars in millions, except EPS)
       
Reported Y/Y FX Adjusted Y/Y
    2Q17   2Q16   Change   Change
GAAP                
Revenue   $979   $906   8%   6%
Operating Margin   (1.2%)   11.0%   (1,220) bps   (1,380) bps
Net Income (Loss)   ($144)   $156   (192%)   N/A
Deferred Revenue   $2,487   N/A   N/A   N/A
EPS (Diluted)   ($0.23)   $0.23   (200%)   N/A
CFFO   $55   $134   (59%)   N/A

Reported Y/Y

FX Adjusted Y/Y
   

2Q17
 

2Q16
 

Change
 

Change
Non-GAAP                
Revenue   $1,015   $906   12%   10%
Operating Margin   29.2%   31.2%   (200) bps   (320) bps
Net Income   $192   $196   (2%)   N/A
EPS (Diluted)   $0.30   $0.29   3%   N/A
 

Third Quarter and Fiscal Year 2017 Guidance (Dollars in millions, except EPS and FX rate)
       
FX Adj. Y/Y FX Adj. Y/Y
    3Q17   Growth   FY17   Growth
GAAP                
Revenue   $1,023 - $1,043   10% - 12%   $3,925 - $4,005   7% - 10%
Enterprise Security   $628 - $643   25% - 28%   N/A   N/A
Consumer Security   $395 - $400   (6%)   N/A   N/A
Operating Margin   (6%) - (5%)       1% - 3%    
EPS   ($0.02) - ($0.00)       ($0.07) - ($0.01)    
Non-GAAP                
Revenue   $1,070 - $1,090   15% - 18%   $4,040 - $4,120   11% - 13%
Enterprise Security   $675 - $690   34% - 37%   N/A   N/A
Consumer Security   $395 - $400   (6%)   N/A   N/A
Operating Margin   27% - 28%       27% - 29%    
EPS (Diluted)   $0.27 - $0.29       $1.12 - $1.18    
Tax Rate   29%       29%    
Basic Share Count   620 million       615 million    
Fully Diluted Share Count   650 million       640 million    
FX Rate (€/$)   $1.12       $1.12    
 

The Company completed its $1.0 billion accelerated share repurchase (ASR) transaction on November 3, 2016.

If you liked this article you might like

Novice Trade: Symantec

Equifax's Massive Data Breach Focuses Attention on Symantec's LifeLock

Massive Equifax Hack Lifts Cybersecurity Stocks

Symantec CEO Clark Not Ruling Out Another Deal

Symantec to Sell Web Certificates Business, Wriggle Out of Alphabet Negotiations