Symantec fires president and CEO Enrique Salem prior to reporting financial results

26 Jul 2012

It has already been an eventful week at security software maker Symantec. The company’s board of directors fired its president and CEO Enrique Salem and replaced him with Steve Bennett, who will continue as chairman of the board. The leadership changes preceded the company reporting yesterday a 1pc year-over-year increase in GAAP revenue to US$1.668bn in its first quarter of fiscal year 2013.

Bennett told Reuters in an interview that Symantec’s board members decided to fire Salem after determining it was time to intervene to improve the company’s performance.

Symantec’s GAAP operating margin for the first quarter of fiscal year 2013 totalled 16.1pc compared with 18.3pc for the same period last year.

GAAP net income reached US$172m, down from US$191m for the year-ago period.

GAAP diluted earnings per share were US$0.24 compared with $0.25 for the year-ago quarter.

GAAP deferred revenue as of 29 June 2012, was US$3.745bn, a slight increase from $3.689bn as of 1 July 2011, up 2pc year-over-year and up 5pc after adjusting for currency.

Cash flow from operating activities reached US$340m compared with US$503m for the same period last year.

Symantec ended the quarter with cash, cash equivalents and short-term investments of US$4.1bn.

Bennett said Symantec delivered a solid quarter.

“The company’s investment in cloud security and mobility continues to gain momentum and position us well worldwide,” Bennett said. “We are making progress on many fronts, but believe we can further accelerate the company’s value to employees, customers, partners and shareholders.”

Tina Costanza was a journalist and sub-editor at Silicon Republic