Symantec Reports Solid Second Quarter Earnings

Symantec Reports Solid Second Quarter Earnings

Symantec Corp. (Nasdaq: SYMC) today reported results for the second quarter of fiscal year 2006, ended Sept. 30, 2005. GAAP revenue for the September 2005 quarter was $1.056 billion and non-GAAP revenue was $1.192 billion. Non-GAAP revenue includes $136 million of deferred revenue that has been eliminated from GAAP results as part of the purchase accounting associated with the acquisition of VERITAS Software Corporation. On a non-GAAP basis, revenue grew eight percent over the September 2004 quarter’s combined non-GAAP revenue of $1.103 billion.

GAAP Results: The September quarter’s GAAP net loss was $251 million, resulting in fully diluted GAAP loss per share of $0.21. The loss was driven primarily by the write-off of $284 million in IPR&D expense associated with the acquisition of VERITAS, in addition to other merger-related acquisition and restructuring charges.

Non-GAAP Results: Non-GAAP net income was $273 million for the second quarter, 16 percent higher than the September 2004 quarter’s combined non-GAAP net income of $235 million. Non-GAAP fully diluted earnings per share for the quarter was $0.23, up 21 percent as compared to our combined non-GAAP earnings per share of $0.19 in the September 2004 quarter. Non-GAAP results, as presented in the attached consolidated statements, exclude certain non-GAAP expenses, net of tax, and include VERITAS results of operations for the applicable periods, including adjustments based on the fair values of assets acquired and liabilities assumed as of the acquisition date of July 2, 2005, and deferred revenue that was eliminated as a result of purchase accounting for the VERITAS acquisition.

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