Rise in security spending fattens Symantec’s revenue

28 Jul 2011

A “toxic” threat landscape is paying off for computer security software maker Symantec Corp. The company reported increased revenue of 15pc to $1.65bn in its fiscal first-quarter earnings.

“The current threat landscape continues to be toxic and targeted. In addition, information is growing at unprecedented rates. As a result, customers increasingly understand the value of our unique portfolio and are expanding their commitment to Symantec. For the fourth consecutive quarter, we exceeded all of our key financial metrics,” said Enrique Salem, president and CEO, Symantec.

“We are capitalising on new growth opportunities in cloud, mobile and virtualisation and will continue to deliver new solutions to help both consumers and enterprises securely access and use information across multiple devices and platforms.”

Symantec’s operating margin was 17.1pc compared with 13.5pc for the same quarter last year. Net income for the fiscal first quarter was US$172m compared with net income of US$161m for the year-ago period. Diluted earnings per share were US$0.22 compared with US$0.20 for the year ago quarter, an increase of 10pc year-over-year.

Deferred revenue, an indicator of future sales growth, as of 1 July, 2011, was US$3.689bn compared with $2.998bn as of 2 July, 2010, up 23pc year-over-year and up 17pc after adjusting for currency.

Cash flow from operating activities for the first quarter of fiscal year 2012 was US$503m compared with US$335 for the year-ago period, an increase of 50pc year-over-year.

Symantec ended the quarter with cash, cash equivalents and short-term investments of $2.297bn.