-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FoJOOcG96cO/EIDCXEE+1Dhr/14b975guPA0dG2PsqPjiloeco48tehRB6UxRqj1 s/QPCA5HCV6ZSM48org9CA== 0000950134-04-015324.txt : 20041020 0000950134-04-015324.hdr.sgml : 20041020 20041020160551 ACCESSION NUMBER: 0000950134-04-015324 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20041020 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20041020 DATE AS OF CHANGE: 20041020 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SYMANTEC CORP CENTRAL INDEX KEY: 0000849399 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 770181864 STATE OF INCORPORATION: DE FISCAL YEAR END: 0402 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-17781 FILM NUMBER: 041087637 BUSINESS ADDRESS: STREET 1: 20330 STEVENS CREEK BLVD CITY: CUPERTINO STATE: CA ZIP: 95014 BUSINESS PHONE: 4082539600 MAIL ADDRESS: STREET 1: 20330 STEVENS CREEK BLVD CITY: CUPERTINO STATE: CA ZIP: 95014 8-K 1 f02526e8vk.htm FORM 8-K e8vk
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

 
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 20, 2004

SYMANTEC CORPORATION

(Exact name of the Registrant as specified in its charter)

Delaware

(State or other jurisdiction of incorporation)
     
000-17781   77-0181864
  		 
 
(Commission   (IRS Employer Identification No.)
File Number)    
     
20330 Stevens Creek Blvd., Cupertino, CA   95014
(Address of principal executive offices)   (Zip code)

(408) 517-8000

(The Registrant’s telephone number)
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

TABLE OF CONTENTS

ITEM 2.02: RESULTS OF OPERATIONS AND FINANCIAL CONDITION
ITEM 9.01: FINANCIAL STATEMENTS AND EXHIBITS
SIGNATURE
EXHIBIT INDEX
EXHIBIT 99.1

Table of Contents

ITEM 2.02: RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

     On October 20, 2004, Symantec Corporation (the “Registrant”) issued a press release announcing results for the fiscal quarter ended October 1, 2004. A copy of the press release is attached as exhibit 99.1. The information in this report shall not be deemed to be “filed” for purposes of Section 18 of, or otherwise regarded as filed under, the Securities Exchange Act of 1934, as amended. Unless expressly incorporated into a filing of the Registrant under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, made after the date hereof, the information contained herein shall not be incorporated by reference into any filing of the Registrant, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

ITEM 9.01: FINANCIAL STATEMENTS AND EXHIBITS.

(c) Exhibits.

     The following exhibit is filed herewith:

     
Exhibit No.   Description
99.1
  Press release issued by Symantec Corporation dated October 20, 2004.
 

 

Table of Contents

SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

     
Date: October 20, 2004
  SYMANTEC CORPORATION
 
    
  By: /s/ Arthur F. Courville
 
 
  Arthur F. Courville
  Senior Vice President and General
  Counsel

 

Table of Contents

EXHIBIT INDEX

     
99.1
  Press release issued by Symantec Corporation dated October 20, 2004.
 

 

EX-99.1 2 f02526exv99w1.txt EXHIBIT 99.1 EXHIBIT 99.1 News Release FOR IMMEDIATE RELEASE MEDIA CONTACT: INVESTOR CONTACT: Melissa Martin David Gennarelli Symantec Corporation Symantec Corporation 408-517-8475 408-517-5275 Melissa_martin@symantec.com David_gennarelli@symantec.com SYMANTEC REPORTS RECORD REVENUE GROWTH IN FISCAL SECOND QUARTER RAISES FISCAL YEAR GUIDANCE CUPERTINO, CALIF. - OCT. 20, 2004 - Symantec Corp. (Nasdaq: SYMC), the global leader in information security, today reported results for the fiscal second quarter ended Oct. 1, 2004. Symantec posted revenue for the quarter of $618 million, a 44 percent increase compared to $429 million for the same quarter last year, driven by solid execution across all business segments and regions. GAAP RESULTS: Net income for the fiscal second quarter was $136 million, compared to $83 million for the same quarter last year. Earnings per share was $0.38, a 58 percent increase compared to earnings per share of $0.24 for the year-ago quarter. NON-GAAP RESULTS: Non-GAAP net income for the fiscal second quarter was $146 million, compared to $91 million for the same quarter last year. Non-GAAP earnings per share was $0.41, a 52 percent increase compared to earnings per share of $0.27 for the year-ago quarter. Non-GAAP results and related reconciliation, as outlined in the attached consolidated statements, exclude amortization of other intangibles from acquisitions, amortization of deferred stock-based compensation, acquired in-process research and development, restructuring charges, and patent settlement charges as well as related income tax benefits. See "Use of Non-GAAP Financial Information" below. "We continue to gain momentum in our consumer and enterprise business segments as customers look for solutions to help them create a balance between the security and availability of their information assets," said John W. Thompson, Symantec chairman and CEO. "In addition, our international performance remains solid across all regions." (More) SYMANTEC REPORTS RECORD REVENUE GROWTH IN FISCAL SECOND QUARTER PAGE 2 OF 8 REVENUE COMPONENTS For the quarter, Symantec's worldwide enterprise business, including enterprise security, enterprise administration, and services, represented 49 percent of total revenue and grew 29 percent year-over-year. Symantec's enterprise security business represented 36 percent of total revenue and grew 27 percent; the enterprise administration business represented 11 percent of total revenue and grew 36 percent; and the services business represented 2 percent of total revenue and grew 22 percent. Symantec's consumer business represented 51 percent of total revenue and grew 63 percent. International revenues represented 52 percent of total revenue in the second quarter and grew 51 percent over the same quarter last year. The Americas, including the United States, Latin America, and Canada, grew 38 percent. The Europe, Middle East and Africa region recorded 52 percent growth and Japan/Asia Pacific grew 52 percent. BUSINESS OUTLOOK Symantec is providing forward-looking guidance for the fiscal third quarter ending Dec. 31, 2004, as follows: - Revenue is estimated between $645 million and $665 million. - At the mid-point of revenue guidance, GAAP earnings per share is estimated to be $0.41. - At the mid-point of revenue guidance, non-GAAP earnings per share is estimated to be $0.43. Symantec is raising forward-looking guidance for fiscal year 2005 ending April 1, 2005, as follows: - Revenue is estimated to be $2.495 billion, an increase of $90 million from prior guidance. - By business segment we are estimating revenue growth for fiscal year 2005 as follows: - Enterprise Security 24% growth - Consumer Products 44% growth - Enterprise Administration 25% growth - Services 19% growth - Deferred revenue is expected to be between $1.30 billion and $1.35 billion at the end of fiscal year 2005. - GAAP earnings per share is estimated at $1.54, an increase of $0.06 from prior guidance. - Non-GAAP earnings per share is estimated at $1.64, an increase of $0.07 from prior guidance. Non-GAAP earnings per share guidance excludes the pre-tax amortization of other intangibles from acquisitions, amortization of deferred stock-based compensation, acquired in-process research and development and restructuring charges of approximately $14 million and $56 million for the quarter ending Dec. 31, 2004, and the fiscal year ending April 1, 2005, respectively. (More) SYMANTEC REPORTS RECORD REVENUE GROWTH IN FISCAL SECOND QUARTER PAGE 3 OF 8 QUARTERLY HIGHLIGHTS - - During the quarter the total number of transactions worldwide worth more than $100,000 each was 311, including 67 worth more than $300,000 each and 10 worth more than $1 million each. Customers from the quarter included PARK NICOLLET HEALTH SERVICES, a nonprofit, integrated care system; STORAGETEK, a leading provider of enterprise information lifecycle management; and SOUTH FLORIDA WATER MANAGEMENT DISTRICT, a regional, governmental agency that oversees water resources in the southern half of Florida. - - International customers from the quarter included TELCEL, the leading wireless operator in Mexico; PARTNERRE LTD., a leading international reinsurance group providing multi-line reinsurance to insurance companies on a worldwide basis; TELSTRACLEAR LIMITED, New Zealand's second largest full-service telecommunications company; IINET, a leading Internet Service Provider in Australia and New Zealand; ALENIA SPAZIO, a leading Italian aerospace company; ALL NIPPON AIRWAYS CO., LTD, a leading airline company in Japan; and MITSUI SUMITOMO INSURANCE COMPANY, LIMITED, one of the leading non-life insurance companies in Japan. CONFERENCE CALL Symantec has scheduled a conference call for 5 p.m. ET/2 p.m. PT today to discuss fiscal second quarter 2005 results, and to review guidance for the fiscal third quarter and fiscal year 2005. Interested parties may access the conference call on the Internet at http://www.symantec.com/invest/index.html. To listen to the live call, please go to the Web site at least 15 minutes early to register, download, and install any necessary audio software. A replay and script of our officers' remarks will be available on the investor relations' home page shortly after the call is completed. ABOUT SYMANTEC Symantec is the global leader in information security providing a broad range of software, appliances and services designed to help individuals, small and mid-sized businesses, and large enterprises secure and manage their IT infrastructure. Symantec's Norton brand of products is the worldwide leader in consumer security and problem-solving solutions. Headquartered in Cupertino, Calif., Symantec has operations in more than 35 countries. More information is available at http://www.symantec.com. ### NOTE TO EDITORS: If you would like additional information on Symantec Corporation and its products, please view the Symantec Press Center at http://www.symantec.com/PressCenter/ on Symantec's Web site. All prices noted are in US dollars and are valid only in the United States. Symantec and the Symantec logo are trademarks or registered trademarks, in the United States and certain other countries, of Symantec Corporation. Additional company and product names may be trademarks or registered trademarks of the individual companies and are respectfully acknowledged. (More) SYMANTEC REPORTS RECORD REVENUE GROWTH IN FISCAL SECOND QUARTER PAGE 4 OF 8 FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements, including forecasts of future revenue, deferred revenue and GAAP and non-GAAP earnings per share, expected industry patterns, and other financial and business results that involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results expressed or implied by this press release. Such risk factors include, among others: the sustainability of recent growth rates, particularly in consumer products; the anticipation of the growth of certain market segments, particularly enterprise security; the positioning of Symantec's products in those segments; the competitive environment in the software industry; general market conditions; fluctuations in currency exchange rates; changes to operating systems and product strategy by vendors of operating systems; and whether Symantec can successfully develop new products and integrate acquired businesses, and the degree to which these products and businesses gain market acceptance. Actual results may differ materially from those contained in the forward-looking statements in this press release. Additional information concerning these and other risk factors is contained in the Risk Factors sections of Symantec's recently filed Form 10-Q. Symantec assumes no obligation to update any forward-looking information contained in this press release. USE OF NON-GAAP FINANCIAL INFORMATION: In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Symantec reports non-GAAP financial results. Non-GAAP net income and earnings per share exclude acquisition related charges, such as amortization of other intangibles, amortization of deferred stock-based compensation and in-process research and development, and certain other identified charges, such as restructuring and patent settlement, as well as the tax effect of these items. Symantec's management believes these non-GAAP measures are useful to investors because they provide supplemental information that facilitates comparisons to prior periods. Management uses these non-GAAP measures to evaluate its financial results, develop budgets and manage expenditures. The method Symantec uses to produce non-GAAP results is not computed according to GAAP, is likely to differ from the methods used by other companies and should not be regarded as a replacement for corresponding GAAP measures. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to the comparable GAAP results, which is attached to this release and can also be found on the investor relations Web site at www.symantec.com/invest/center.html. ### (More) SYMANTEC REPORTS RECORD REVENUE GROWTH IN FISCAL SECOND QUARTER PAGE 5 OF 8 SYMANTEC CORPORATION GAAP CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Six Months Ended September 30, September 30, --------------------------- -------------------------- (In thousands, except per share data; unaudited) 2004 2003 2004 2003 - ----------------------------------------------------- ----------- ----------- ----------- ----------- Net revenues $ 618,313 $ 428,665 $ 1,174,947 $ 819,789 Cost of revenues 109,219 74,810 209,480 142,388 ----------- ----------- ----------- ----------- Gross profit 509,094 353,855 965,467 677,401 Operating expenses: Research and development 83,816 59,596 156,700 120,201 Sales and marketing 201,886 155,705 389,818 297,542 General and administrative 27,578 21,174 51,863 47,546 Amortization of other intangibles from acquisitions 1,142 756 2,034 1,547 Amortization of deferred stock-based compensation 639 -- 639 -- Acquired in-process research and development -- 1,000 2,262 1,000 Restructuring, site closures and other 1,916 2 2,776 570 Patent settlement -- -- -- 13,917 ----------- ----------- ----------- ----------- Total operating expenses 316,977 238,233 606,092 482,323 Operating income 192,117 115,622 359,375 195,078 Interest income 10,858 8,807 20,176 18,904 Interest expense (5,291) (5,291) (10,582) (10,582) Income, net of expense, from sale of technologies and product lines -- 2,158 -- 4,326 Other income (expense), net (135) 673 985 (38) ----------- ----------- ----------- ----------- Income before income taxes 197,549 121,969 369,954 207,688 Provision for income taxes 61,926 38,536 117,054 65,474 ----------- ----------- ----------- ----------- Net income $ 135,623 $ 83,433 $ 252,900 $ 142,214 =========== =========== =========== =========== Net income per share - diluted* $ 0.38 $ 0.24 $ 0.71 $ 0.42 =========== =========== =========== =========== Shares used to compute net income per share - diluted* 368,269 356,830 367,822 353,572 =========== =========== =========== ===========
* Share and per share amounts for the three and six months ended September 30, 2003 retroactively reflect the two-for-one stock split effected as a stock dividend, which occurred on November 19, 2003. For the three and six months ended September 30, 2004 and 2003, diluted net income per share is calculated using the if-converted method. Under this method, the numerator excludes the interest expense from the 3% convertible subordinated notes, net of income tax, of $3.6M and $7.2M for the three and six months ended September 30, 2004 and 2003, respectively, and the denominator includes shares issuable from the assumed conversion of the 3% convertible subordinated notes. (More) SYMANTEC REPORTS RECORD REVENUE GROWTH IN FISCAL SECOND QUARTER PAGE 6 OF 8 SYMANTEC CORPORATION NON-GAAP CONSOLIDATED STATEMENTS OF INCOME NON-GAAP AMOUNTS EXCLUDE ALL ACQUISITION RELATED AMORTIZATION OF INTANGIBLES AND AMORTIZATION OF DEFERRED STOCK-BASED COMPENSATION, ACQUIRED IPR&D, PATENT SETTLEMENT AND RESTRUCTURING CHARGES.
Three Months Ended Six Months Ended September 30, September 30, --------------------------- -------------------------- (In thousands, except per share data; unaudited) 2004 2003 2004 2003 - ------------------------------------------------ ----------- ----------- ----------- ----------- Net revenues $ 618,313 $ 428,665 $ 1,174,947 $ 819,789 Cost of revenues 96,015 64,570 185,026 123,383 ----------- ----------- ----------- ----------- Gross profit 522,298 364,095 989,921 696,406 Operating expenses: Research and development 83,816 59,596 156,700 120,201 Sales and marketing 201,886 155,705 389,818 297,542 General and administrative 27,578 21,174 51,863 47,546 ----------- ----------- ----------- ----------- Total operating expenses 313,280 236,475 598,381 465,289 Operating income 209,018 127,620 391,540 231,117 Interest income 10,858 8,807 20,176 18,904 Interest expense (5,291) (5,291) (10,582) (10,582) Income, net of expense, from sale of technologies and product lines -- 2,158 -- 4,326 Other income (expense), net (135) 673 985 (38) ----------- ----------- ----------- ----------- Income before income taxes 214,450 133,967 402,119 243,727 Provision for income taxes 68,624 42,869 128,678 77,992 ----------- ----------- ----------- ----------- Net income $ 145,826 $ 91,098 $ 273,441 $ 165,735 =========== =========== =========== =========== Net income per share - diluted* $ 0.41 $ 0.27 $ 0.76 $ 0.49 =========== =========== =========== =========== Shares used to compute net income per share - diluted* 368,269 356,830 367,822 353,572 =========== =========== =========== ===========
* Share and per share amounts for the three and six months ended September 30, 2003 retroactively reflect the two-for-one stock split effected as a stock dividend, which occurred on November 19, 2003. For the three and six months ended September 30, 2004 and 2003, diluted net income per share is calculated using the if-converted method. Under this method, the numerator excludes the interest expense from the 3% convertible subordinated notes, net of income tax, of $3.6M and $7.2M for the three and six months ended September 30, 2004 and 2003, respectively, and the denominator includes shares issuable from the assumed conversion of the 3% convertible subordinated notes. (More) SYMANTEC REPORTS RECORD REVENUE GROWTH IN FISCAL SECOND QUARTER PAGE 7 OF 8 SYMANTEC CORPORATION RECONCILIATION OF NON-GAAP GROSS PROFIT, OPERATING EXPENSES AND CONSOLIDATED STATEMENTS OF INCOME TO THE GAAP GROSS PROFIT, OPERATING EXPENSES AND CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Six Months Ended September 30, September 30, --------------------------- -------------------------- (In thousands, except per share data; unaudited) 2004 2003 2004 2003 - ----------------------------------------------------- ----------- ----------- ----------- ----------- Non-GAAP gross profit $ 522,298 $ 364,095 $ 989,921 $ 696,406 Cost of revenues: Amortization of acquired product rights (13,204) (10,240) (24,454) (19,005) ----------- ----------- ----------- ----------- GAAP gross profit $ 509,094 $ 353,855 $ 965,467 $ 677,401 =========== =========== =========== =========== Non-GAAP operating expenses $ 313,280 $ 236,475 $ 598,381 $ 465,289 Operating expenses: Amortization of other intangibles from acquisitions 1,142 756 2,034 1,547 Amortization of deferred stock-based compensation 639 -- 639 -- Acquired in-process research and development -- 1,000 2,262 1,000 Restructuring, site closures and other 1,916 2 2,776 570 Patent settlement -- -- -- 13,917 ----------- ----------- ----------- ----------- Total operating expenses 3,697 1,758 7,711 17,034 GAAP operating expenses $ 316,977 $ 238,233 $ 606,092 $ 482,323 =========== =========== =========== =========== Non-GAAP net income $ 145,826 $ 91,098 $ 273,441 $ 165,735 Cost of revenues (13,204) (10,240) (24,454) (19,005) Operating expenses (3,697) (1,758) (7,711) (17,034) Income tax benefit 6,698 4,333 11,624 12,518 ----------- ----------- ----------- ----------- GAAP net income $ 135,623 $ 83,433 $ 252,900 $ 142,214 =========== =========== =========== =========== NON-GAAP AND GAAP NET INCOME PER SHARE - DILUTED Non-GAAP net income per share - diluted $ 0.41 $ 0.27 $ 0.76 $ 0.49 =========== =========== =========== =========== GAAP net income per share - diluted $ 0.38 $ 0.24 $ 0.71 $ 0.42 =========== =========== =========== =========== Shares used to compute net income per share - diluted 368,269 356,830 367,822 353,572 =========== =========== =========== ===========
(More) SYMANTEC REPORTS RECORD REVENUE AND EARNINGS GROWTH PAGE 8 OF 8 SYMANTEC CORPORATION CONSOLIDATED BALANCE SHEETS
September 30, March 31, (In thousands; unaudited) 2004 2004 - ------------------------------------------ ------------- ------------- ASSETS Current assets: Cash and cash equivalents $ 2,544,877 $ 2,410,331 Trade accounts receivable, net 328,166 259,152 Inventories 20,687 15,134 Current deferred income taxes 110,153 98,438 Other current assets 81,339 59,079 ------------- ------------- Total current assets 3,085,222 2,842,134 Property and equipment, net 373,211 378,367 Acquired product rights, net 127,228 120,938 Goodwill 1,378,204 1,080,759 Other long-term assets 28,396 34,300 ------------- ------------- $ 4,992,261 $ 4,456,498 ============= ============= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 90,222 $ 71,654 Accrued compensation and benefits 104,033 116,770 Current deferred revenue 1,055,956 878,716 Other accrued expenses 91,488 92,595 Income taxes payable 140,485 127,305 ------------- ------------- Total current liabilities 1,482,184 1,287,040 Convertible subordinated notes 599,923 599,987 Long-term deferred revenue 97,514 92,481 Long-term deferred tax liabilities 56,757 44,750 Other long-term obligations 5,453 6,032 Stockholders' equity: Common stock 3,163 3,119 Capital in excess of par value 1,714,850 1,573,466 Accumulated other comprehensive income 150,515 125,484 Deferred stock-based compensation (6,385) -- Retained earnings 888,287 724,139 ------------- ------------- Total stockholders' equity 2,750,430 2,426,208 ------------- ------------- $ 4,992,261 $ 4,456,498 ============= =============
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