Symantec to Correct Classification Errors in Most Recent Financial Statements

Symantec to Correct Classification Errors in Most Recent Financial Statements

Symantec Corp. (NASDAQ: SYMC) today announced that it will correct a misclassification in the company’s Condensed Consolidated Statements of Cash Flows for the six months ended Sept. 30, 2005 and misclassifications in the Condensed Consolidated Statements of Operations for the three months and six months ended Sept. 30, 2004 and 2005. These classification errors have no impact on the company’s previously reported total revenue, earnings, cash and cash equivalents, the Condensed Consolidated Balance Sheets, or previously issued guidance.

On Dec. 14, 2005, the company and its audit committee concluded that the company’s Condensed Consolidated Financial Statements for the three and six months ended Sept. 30, 2004 and 2005 should be corrected. The correction will reflect a reclassification between Cash Flows from Operating Activities and Cash Flows from Financing Activities, and reclassifications between license revenue and content, subscription, and maintenance revenue.

In the corrected Condensed Consolidated Statements of Cash Flows, $145 million will be reclassified from other accrued expenses under Cash Flows from Operating Activities to repurchases of common stock within Cash Flows from Financing Activities. The $145 million related to unsettled stock repurchases and was classified as accrued liabilities in the Condensed Consolidated Balance Sheet, but incorrectly captured as an increase in Cash Flows from Operating Activities on the Condensed Consolidated Statement of Cash Flows. As a result, Cash Flows from Operating Activities will change from $674 million to $529 million and Cash Flows from Financing Activities will change from $(2,236) million to $(2,091) million. Ending cash and cash equivalents remains unaffected at $1,806 million.

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