Symantec has reported flat revenue for the first quarter of 2011, although it increased its earnings.
For the quarter ended 2 July 2010, GAAP revenue for the fiscal first quarter was $1.433-billion, flat versus the comparable period a year ago and up 2% after adjusting for currency.
“This quarter, we saw lengthening of procurement cycles driven by continued cautiousness among IT buyers. In particular, this affected our storage management results,” says Enrique Salem, president and CEO of Symantec. “We are optimistic about the strength we saw in the public sector as well as with our Data Loss Prevention solutions. In addition, our Software-as-a-Service offerings posted double-digit growth as we continue to expand our leadership in this high-growth market.”
"On a constant currency basis, we saw year-over-year revenue growth across all of our geographies and solid deferred revenue performance,” says James Beer, executive vice-president and chief financial officer of Symantec. “We also saw continued growth in our Consumer business as we finalized the successful transition to our in-house e-commerce platform.”
GAAP operating margin for the first quarter of fiscal year 2011 was 13.5%. GAAP net income for the fiscal first quarter was $161-million compared with net income of $74-million for the same quarter last year. GAAP diluted earnings per share were $0.20 compared with $0.09 for the same quarter last year.
GAAP deferred revenue as of 2 July 2010, was $2.998-billion compared with $2.973-billion as of 3 July 2009, up 1% year-over-year. After adjusting for currency, deferred revenue increased 3% year-over-year. Cash flow from operating activities for the first quarter of fiscal year 2011 was $335-million. Symantec ended the quarter with cash, cash equivalents and short-term investments of $2.739-billion.
For the quarter, Symantec’s Consumer segment represented 33% of total revenue and increased 6% year-over-year (7% after adjusting for currency). The Security and Compliance segment represented 24% of total revenue and increased 1% year-over-year (2% after adjusting for currency). The Storage and Server Management segment represented 36% of total revenue and declined 5% year-over-year (3% after adjusting for currency). Services represented 7% of total revenue and was flat year-over-year (increased 2% after adjusting for currency).
International revenue represented 50% of total revenue in the first quarter of fiscal year 2011 and decreased 1% year-over-year (increased 3% after adjusting for currency). The Europe, Middle East and Africa region represented 28% of total revenue for the quarter and decreased 6% year-over-year (increased 2% after adjusting for currency). The Asia Pacific/Japan revenue for the quarter represented 16% of total revenue and increased 7% year-over-year (2% after adjusting for currency). The Americas, including the US, Latin America and Canada, represented 56% of total revenue and increased 2 % year-over-year on an actual and currency-adjusted basis.
Symantec completed the acquisitions of PGP and GuardianEdge in early June. The acquisitions generated June quarter revenue of $4-million and diluted earnings per share by half a cent, as expected.