Updated from 4:48 p.m. EDT
swung to a profit for its second quarter on Wednesday but missed analysts' earnings forecast.
Investors showed their disappointment in after-hours trading; the shares were off 7.1%, shedding $1.48 to $19.30.
Symantec earned $123.4 million, or 12 cents a share, for the second quarter, reversing a loss of $251.3 million, or 21 cents a share a year ago.
Excluding some items, the security software purveyor reported a profit of $258.7 million, or 26 cents a share, compared with $272.8 million, or 23 cents a share in the same period last year. On that basis, Symantec fell short of the consensus estimate by 1 cent.
Revenue totaled $1.26 billion, growing from $1.06 billion in the comparable quarter. Non-GAAP revenue was $1.28 billion, rising from $1.19 billion. Analysts had forecast sales a shade higher at $1.29 billion.
"Our results for the September quarter met the low end of our expectations," CEO John Thompson said on a conference call with financial analysts after the bell. "With the most challenging part of the fiscal year behind us, I believe our business remains healthy and we are poised to achieve our full-year financial targets."
The company's consumer business made up 31% of revenue, a 12% boost over the comparable quarter. The enterprise segment totaled 69% of sales, growing 5%.
The security giant signed 280 deals worth more than $300,000 in the quarter, including 66 deals worth more than $1 million each.
But Thomson said that "sales weakness in our EMEA (Europe, Middle East and Africa) enterprise business was a disappointment."
"Our European team has lost their security swagger," he said, noting that the sales team has not embraced the company's whole portfolio.
The problems were mainly confined to business in Germany, he added.
Thompson reported that its
long-awaited Norton 360 product was in "controlled beta" now to a smaller set of users, but that the company would release a larger beta test soon and that investors should "keep watching your screen" for news.
Symantec said it planned to boost the number of employees in India and will add a second location in Chennai, in addition to its facility in Pune. Headcount in India could reach 3,500 to 4,000 in the next few years, Thompson said, double its current number.
For the December quarter, Symantec said revenue should range from $1.315 billion to $1.345 billion and EPS would be between 14 cents and 15 cents.
Non-GAAP revenue will be between $1.325 billion and $1.355 billion, with an EPS excluding items of 29 cents to 30 cents. Analysts had pegged the company to meet the high end of the forecast with a projection of $1.35 billion in sales and earnings of 30 cents a share.
For the full year, Symantec reaffirmed its previous guidance, saying revenue will be $5.1 billion to $5.3 billion and earnings will be 46 cents to 56 cents.
Without certain items, the forecast for the year is $5.2 billion to $5.4 billion in sales with an EPS between $1.06 and $1.16. That brackets the consensus estimate of $5.33 billion in sales and earnings of $1.12 a share.
"Now it's all up to us to execute," Thompson said.