Symantec Slashes Quarterly Guidance; CEO to Step Down
April 28 2016 - 11:25AM
Dow Jones News
By Nathan Becker
Symantec Corp. shares dropped Thursday as the company slashed
its guidance and said Chief Executive Michael Brown would step down
once it finds a successor.
For the fourth quarter, the company said revenue is expected to
come in at $873 million, down from prior guidance of $885 million
to $915 million. It also expects adjusted earnings of 22 cents,
below its prior range of 24 cents to 27 cents.
Symantec said the shortfall is because of "a shift in enterprise
security customer buying preferences" that led to less license
revenue during the quarter. It did note that more revenue had been
deferred to future periods.
Shares dropped 14% to $15.60 in premarket trading.
The company also said it would search for a new chief executive
to replace Mr. Brown. Meanwhile, Symantec said it had named Ajei
Gopal as interim president and operating chief, part of an "office
of the president" that includes other executives who will help fill
the management void until the new CEO is hired.
The guidance cut and CEO departure come after the company has
made a push to morph itself into a cybersecurity-only firm. In
August, the company struck a deal to sell its Veritas data-storage
business to Carlyle Group LP, though the private-equity firm in
January said it would pay less than originally agreed for the
business, citing "uncertainties" that surfaced following the deal's
announcement.
Write to Nathan Becker at nathan.becker@wsj.com
(END) Dow Jones Newswires
April 28, 2016 11:10 ET (15:10 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Symantec (NASDAQ:SYMC)
Historical Stock Chart
From Mar 2024 to Apr 2024
Symantec (NASDAQ:SYMC)
Historical Stock Chart
From Apr 2023 to Apr 2024
