- Q1 revenue flat Y/Y, adjusting for
currency and an extra week in the June 2014 quarter
- Operating margin expansion of 480 bps
Y/Y to 27.4%, adjusting for currency impact
- Signs definitive agreement to sell
information management business for $8 billion
- Raises stock repurchase program to $2.6
billion and maintains dividend at $0.15
Symantec Corp. (NASDAQ:SYMC) today reported the results of its
first quarter of fiscal year 2016, ended July 3, 2015.
Michael A. Brown, president and CEO, said, “We made encouraging
progress in several product segments, achieving growth in our
enterprise security business for the first quarter in two years.
However, our revenue was flat in Q1, adjusting for currency and an
extra week in the June 2014 quarter. Reaching a definitive
agreement to sell Veritas marks an important inflection point for
Symantec. With a strong product pipeline of more than a dozen
enterprise security products on track to be released this year,
Symantec is now focused on extending its lead as the world’s
largest cybersecurity company.”
Thomas Seifert, executive vice president and CFO, said,
“The $8 billion sale price for Veritas delivers a certain and
attractive valuation, and simplifies the separation process. We
remain committed to returning significant cash to shareholders, by
announcing an increase to our share repurchase authorization to
$2.6 billion. We also intend to maintain our dividend at 15 cents
per common share, which represents an increased and attractive
payout ratio for a company of Symantec’s size post-separation.”
Results for the First Quarter of Fiscal Year 2016 (Dollars in
millions, except EPS)
1Q16 1Q15
Reported
Y/Y
Change
FX
Adjusted
Y/Y
Change
FX and
14th Week
Adjusted
Y/Y
Change
GAAP
Revenue $1,499 $1,735
(14%) (7%) 0%
Operating Margin 13.4%
18.6% (520) bps (230) bps N/A
Net
Income $117 $236 (50%) N/A
N/A
Deferred Revenue $3,419 $3,713 (8%)
(1%) (1%)
EPS (Diluted) $0.17
$0.34 (50%) N/A N/A
CFFO $300
$293 2% N/A N/A
Non-GAAP
Operating Margin 27.4% 24.6% 280 bps
480 bps N/A
Net Income $275 $313
(12%) N/A N/A
EPS (Diluted)
$0.40 $0.45 (11%) N/A N/A
Second Quarter and Fiscal Year 2016 Guidance (Dollars in
millions, except EPS and FX rate)
2Q16 FY16 GAAP
Revenue $1,485 - $1,525
$6,210 - $6,350
Operating Margin 13.0% - 15.0%
14.5% - 15.5%
EPS (Diluted) $0.19 - $0.22
$0.86 - $0.96
Non-GAAP
Operating Margin 26.0% - 28.0% 29.0% - 30.0%
EPS (Diluted) $0.40 - $0.43 $1.80 - $1.90
Tax Rate 24.0% 27.5%
Share Count
690 million 694 million
FX Rate (€/$) $1.11
$1.13
Symantec's Board of Directors has declared a quarterly cash
dividend of $0.15 per common share to be paid on September 16, 2015
to all shareholders of record as of the close of business on August
26, 2015. The ex-dividend date will be August 24, 2015.
Symantec’s Board of Directors has also authorized an increase to
its share repurchase program to $2.6 billion.
In a separate press release, Symantec announced a definitive
agreement to sell its information management business, Veritas, to
a group of investors led by The Carlyle Group for $8 billion. The
deal is expected to close by January 1, 2016.
Conference Call
Symantec has scheduled a conference call for 8:30 a.m. ET/5:30
a.m. PT today to discuss its first quarter of fiscal year 2016
results, ended July 3, 2015 and to review guidance. Interested
parties may access the conference call on the Internet at
http://www.symantec.com/invest. To listen to the live call, please
go to the website at least 15 minutes early to register, download
and install any necessary audio software. A replay and our prepared
remarks will be available on the investor relations home page
shortly after the call is completed.
About Symantec
Symantec Corporation (NASDAQ: SYMC) is an information protection
expert that helps people, businesses and governments seeking the
freedom to unlock the opportunities technology brings -- anytime,
anywhere. Founded in April 1982, Symantec, a Fortune 500 company,
operating one of the largest global data-intelligence networks, has
provided leading security, backup and availability solutions for
where vital information is stored, accessed and shared. The
company's more than 19,000 employees reside in more than 45
countries. Ninety-nine percent of Fortune 500 companies are
Symantec customers. In fiscal 2015, it recorded revenues of $6.5
billion. To learn more go to www.symantec.com or connect with
Symantec at: http://www.symantec.com/social/
Symantec and the Symantec Logo are trademarks or registered
trademarks of Symantec Corporation or its affiliates in the U.S.
and other countries. Other names may be trademarks of their
respective owners.
FORWARD-LOOKING STATEMENTS: This press release contains
statements regarding our financial and business results and our
proposed divestiture of our Veritas business, which may be
considered forward-looking within the meaning of the U.S. federal
securities laws. These include statements regarding the anticipated
closing of the Veritas sale, as well as projections of future
revenue, operating margin and earnings per share, amortization of
acquisition-related intangibles, stock-based compensation, and
restructuring, separation and transition charges. These statements
are subject to 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 in this press release. Such risk factors
include those related to: the satisfaction of the conditions to
closing of the Veritas divestiture; general economic conditions;
risks related to the proposed divestiture of Veritas; maintaining
customer and partner relationships; the anticipated growth of
certain market segments, particularly with regard to security and
storage; the competitive environment in the software industry;
changes to operating systems and product strategy by vendors of
operating systems; fluctuations in currency exchange rates; the
timing and market acceptance of new product releases and upgrades;
the successful development of new products and integration of
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. We assume no obligation, and do not intend,
to update these forward-looking statements as a result of future
events or developments. Additional information concerning these and
other risks factors is contained in the Risk Factors sections of
our Form 10-K for the year ended April 3, 2015.
USE OF NON-GAAP FINANCIAL INFORMATION: Our results of operations
have undergone significant change due to the impact of stock-based
compensation, charges related to the amortization of intangible
assets, and certain other income and expense items that management
considers unrelated to Symantec’s core operations, including
restructuring, separation and transition costs. To help our readers
understand our past financial performance and our future results,
we supplement the financial results that we provide in accordance
with generally accepted accounting principles, or GAAP, with
non-GAAP financial measures. The method we use to produce non-GAAP
results is not computed according to GAAP and may differ from the
methods used by other companies. Non-GAAP financial measures are
supplemental, should not be considered a substitute for financial
information presented in accordance with GAAP and should be read
only in conjunction with our consolidated financial statements
prepared in accordance with GAAP. Our management team uses these
non-GAAP financial measures in assessing Symantec’s operating
results, as well as when planning, forecasting and analyzing future
periods. Investors are encouraged to review the reconciliation of
our non-GAAP financial measures to the comparable GAAP results,
which is attached to our quarterly earnings release and which can
be found, along with other financial information, on the investor
relations page of our website at:
http://www.symantec.com/invest.
SYMANTEC CORPORATION
Condensed Consolidated Balance Sheets (Dollars in
millions, unaudited)
July
3,
April
3,
2015
2015 (1)
ASSETS Current assets: Cash and cash
equivalents $ 2,981 $ 2,874 Short-term investments 903 1,017 Trade
accounts receivable, net 604 993 Deferred income taxes 152 152
Deferred commissions 115 131 Other current assets 267
255
Total current assets 5,022
5,422 Property and equipment, net 1,201 1,205
Intangible assets, net 596 628 Goodwill 5,849 5,847 Long-term
deferred commissions 20 26 Other long-term assets 96
105
Total assets $ 12,784 $ 13,233
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities: Accounts payable $ 184 $ 213 Accrued
compensation and benefits 283 398 Deferred revenue 2,901 3,109
Current portion of long-term debt 348 350 Other current liabilities
348 383
Total current
liabilities 4,064 4,453
Long-term debt 1,741 1,746 Long-term deferred revenue 518 555
Long-term deferred tax liabilities 335 308 Long-term income taxes
payable 136 134 Other long-term obligations 94
102
Total liabilities 6,888
7,298
Total stockholders' equity
5,896 5,935
Total liabilities and
stockholders' equity $ 12,784 $ 13,233
(1) Derived from audited
consolidated financial statements.
SYMANTEC
CORPORATION Condensed Consolidated Statements of Income
(In millions, except per share data, unaudited)
Year-Over-Year
Three Months Ended
Growth Rate (1)
July 3,
July 4,
Constant
2015
2014
Actual
Currency (2)
Net revenue: Content, subscription, and maintenance $
1,352 $ 1,574 -14 % -8 % License 147
161 -9 % 0 %
Total net revenue
1,499 1,735 -14 %
-7 %
Cost of revenue: Content, subscription, and
maintenance 219 269 License 22 27 Amortization of intangible assets
13 13
Total cost of revenue 254
309 -18 % -13 %
Gross profit
1,245 1,426 -13 % -6 %
Operating expenses: Sales and marketing 521 644
Research and development 284 308 General and administrative 96 103
Amortization of intangible assets 19 29 Restructuring, separation,
and transition 124 20
Total operating expenses 1,044
1,104 -5 % -2 %
Operating income 201 322
-38 % -18 % Interest income 3 3 Interest
expense (20 ) (21 )
Other (expense) income, net
(11 ) 1
Income before income taxes 173
305 -43 % N/A Provision for
income taxes 56 69
Net income
$ 117 $ 236 -50 % N/A
Net income per share -- basic $ 0.17 $ 0.34 Net
income per share -- diluted $ 0.17 $ 0.34 Weighted-average
shares outstanding -- basic 682 692 Weighted-average shares
outstanding -- diluted 691 697
Cash dividends declared per common
share
$ 0.15 $ 0.15
(1) We have a 52/53 week fiscal accounting year. The
three months ended July 3, 2015 consisted of 13 weeks, whereas the
three months ended July 4, 2014 consisted of 14 weeks. (2)
Management refers to growth rates adjusting for currency so that
the business results can be viewed without the impact of
fluctuations in foreign currency exchange rates. We compare the
percentage change in the results from one period to another period
in order to provide a framework for assessing how our underlying
businesses performed excluding the effect of foreign currency rate
fluctuations. To present this information, current and comparative
prior period results for entities reporting in currencies other
than United States dollars are converted into United States dollars
at the actual exchange rates in effect during the respective prior
periods.
SYMANTEC CORPORATION Condensed
Consolidated Statements of Cash Flows (Dollars in millions,
unaudited)
Three Months Ended
July 3,
July 4,
2015
2014
OPERATING ACTIVITIES: Net income $ 117 $ 236
Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation 70 74 Amortization of intangible
assets 32 42 Amortization of debt issuance costs and discounts 1 1
Stock-based compensation expense 53 43 Deferred income taxes 31 20
Excess income tax benefit from the exercise of stock options (5 )
(3 ) Other 4 1 Net change in assets and liabilities, excluding
effects of acquisitions: Trade accounts receivable, net 391 308
Deferred commissions 22 - Accounts payable (18 ) (57 ) Accrued
compensation and benefits (115 ) (34 ) Deferred revenue (249 ) (185
) Income taxes payable (26 ) (148 ) Other assets - 17 Other
liabilities (8 ) (22 )
Net cash provided by
operating activities 300 293
INVESTING ACTIVITIES: Purchases of property and
equipment (78 ) (92 ) Payments for acquisitions, net of cash
acquired - (19 ) Purchases of short-term investments (183 ) (712 )
Proceeds from maturities of short-term investments 222 77 Proceeds
from sales of short-term investments 76
22
Net cash provided by (used in) investing
activities 37 (724 )
FINANCING ACTIVITIES: Repayments of debt and other
obligations (17 ) (18 ) Net proceeds from sales of common stock
under employee stock benefit plans 4 23 Excess income tax benefit
from the exercise of stock options 5 3 Tax payments related to
restricted stock units (33 ) (29 ) Dividends and dividend
equivalents paid (107 ) (104 ) Repurchases of common stock (90 )
(125 ) Proceeds from other financing, net -
34
Net cash used in financing activities
(238 ) (216 ) Effect of exchange rate
fluctuations on cash and cash equivalents 8
7 Change in cash and cash equivalents 107 (640 )
Beginning cash and cash equivalents 2,874
3,707 Ending cash and cash equivalents $ 2,981
$ 3,067
SYMANTEC CORPORATION
Reconciliation of Selected GAAP Measures to Non-GAAP
Measures (1) (In millions, except per share data,
unaudited) Year-Over-Year Three
Months Ended
Non-GAAP Growth Rate (2)
July 3, 2015 July 4, 2014
GAAP Adj Non-GAAP
GAAP Adj Non-GAAP
Actual
ConstantCurrency
(3)
Net revenue $ 1,499
$ - $ 1,499 $ 1,735
$ - $ 1,735 -14 %
-7 %
Gross profit: $ 1,245 $ 18 $ 1,263 $ 1,426 $ 19
$ 1,445 -13 % -6 % Stock-based compensation 5 6 Amortization of
intangible assets 13
13
Gross margin % 83.1 %
1.2 % 84.3 % 82.2 %
1.1 % 83.3 % 100 bps 120 bps
Operating expenses: $ 1,044 $ 191 $ 853 $ 1,104 $ 86
$ 1,018 -16 % -13 % Stock-based compensation 48 37 Amortization of
intangible assets 19 29 Restructuring, separation, and transition
124
20
Operating expenses as a % of revenue 69.6 %
-12.7 % 56.9 % 63.6 %
-4.9 % 58.7 % -180 bps -360 bps
Operating income $ 201 $ 209
$ 410 $ 322 $ 105
$ 427 -4 % 11 %
Operating margin
% 13.4 % 14.0 % 27.4 %
18.6 % 6.0 % 24.6 %
280 bps 480 bps
Net income: $ 117 $ 158
$ 275 $ 236 $ 77 $ 313 -12 % N/A Gross profit adjustment 18 19
Operating expense adjustment 191 86 Income tax effect on above
items (51 )
(28 )
Diluted net income per share $ 0.17 $ 0.23
$ 0.40 $ 0.34 $ 0.11
$ 0.45 -11 % N/A
Diluted weighted-average shares outstanding
691 - 691
697 - 697
-1 % N/A (1) This presentation includes
non-GAAP measures. Non-GAAP financial measures are supplemental and
should not be considered a substitute for financial information
presented in accordance with GAAP. For a detailed explanation of
these non-GAAP measures, please see Appendix A. (2) We have
a 52/53 week fiscal accounting year. The three months ended July 3,
2015 consisted of 13 weeks, whereas the three months ended July 4,
2014 consisted of 14 weeks. (3) Management refers to growth
rates adjusting for currency so that the business results can be
viewed without the impact of fluctuations in foreign currency
exchange rates. We compare the percentage change in the results
from one period to another period in order to provide a framework
for assessing how our underlying businesses performed excluding the
effect of foreign currency rate fluctuations. To present this
information, current and comparative prior period results for
entities reporting in currencies other than United States dollars
are converted into United States dollars at the actual exchange
rates in effect during the respective prior periods.
SYMANTEC CORPORATION Revenue and Deferred Revenue
Detail (1) (Dollars in millions, unaudited)
Three Months Ended
July 3, 2015 July 4, 2014 GAAP Revenue
Content, subscription, and maintenance
$ 1,352 $ 1,574 License 147
161
Total Revenue $ 1,499
$ 1,735
GAAP Revenue - Y/Y Growth Rate
Content, subscription, and maintenance -14 % 4 %
License -9 % -15 %
Total Y/Y Growth
Rate -14 % 2 %
GAAP Revenue -
Y/Y Growth Rate in Constant Currency (2)
Content, subscription, and maintenance -8 % 2 %
License 0 % -16 %
Total Y/Y Growth
Rate in Constant Currency (2) -7 %
0 %
GAAP Revenue by
Segment Consumer Security $ 430 $
533 Enterprise Security 482 552 Information Management
587 650
GAAP Revenue by
Segment - Y/Y Growth Rate Consumer
Security -19 % 2 % Enterprise Security -13 % 1 % Information
Management -10 % 1 %
GAAP Revenue by
Segment - Y/Y Growth Rate in Constant Currency (2)
Consumer Security -13 % 1 % Enterprise
Security -6 % 0 % Information Management -3 %
0 %
GAAP Revenue by
Geography International $ 732 $ 903
U.S. 767 832 Americas (U.S., Latin America, Canada) 855 940 EMEA
391 495 Asia Pacific & Japan 253
300
GAAP Revenue by Geography - Y/Y Growth
Rate International -19 % 3 % U.S.
-8 % 0 % Americas (U.S., Latin America, Canada) -9 % 1 % EMEA -21 %
5 % Asia Pacific & Japan -16 % -2 %
GAAP Revenue by Geography - Y/Y Growth Rate in Constant
Currency (2) International
-6 % 0 % U.S. -8 % 0 % Americas (U.S., Latin America, Canada) -9 %
1 % EMEA -3 % 0 % Asia Pacific & Japan -6 %
-1 %
GAAP
Deferred Revenue $ 3,419 $ 3,713
GAAP Deferred Revenue - Y/Y Growth Rate -8 %
-4 %
GAAP Deferred Revenue - Y/Y Growth Rate in
Constant Currency (2) -1 %
-6 % (1) We have a 52/53 week fiscal accounting year. The
three months ended July 3, 2015 consisted of 13 weeks, whereas the
three months ended July 4, 2014 consisted of 14 weeks. (2)
Management refers to growth rates adjusting for currency so that
the business results can be viewed without the impact of
fluctuations in foreign currency exchange rates. We compare the
percentage change in the results from one period to another period
in order to provide a framework for assessing how our underlying
businesses performed. To exclude the effects of foreign currency
rate fluctuations, current and comparative prior period results for
entities reporting in currencies other than United States dollars
are converted into United States dollars at the actual exchange
rates in effect during the respective prior periods (or, in the
case of deferred revenue, converted into United States dollars at
the actual exchange rate in effect at the end of the prior period).
SYMANTEC CORPORATION Operating Margin by
Segment Detail (1) (Dollars in millions,
unaudited) Three Months Ended
July 3, 2015 July 4, 2014
Operating Income by Segment
Consumer Security $ 245 $ 268 Enterprise Security 30 70
Information Management 135 89
Total Operating Income by Segment
410 427 Reconciling
Items: Stock-based compensation 53 43 Amortization of intangible
assets 32 42 Restructuring, separation, and transition
124 20
Total Consolidated
Operating Income $ 201 $ 322
Operating Margin by Segment
Consumer Security 57 % 50 % Enterprise
Security 6 % 13 % Information Management 23 %
14 % (1) This presentation includes non-GAAP
measures. Non-GAAP financial measures are supplemental and should
not be considered a substitute for financial information presented
in accordance with GAAP. For a detailed explanation of these
non-GAAP measures, please see Appendix A.
SYMANTEC
CORPORATION Guidance and Reconciliation of GAAP to Non-GAAP
Operating Margin and Earnings Per Share (1) (Dollars
in millions, except per share data, unaudited) Fiscal
Year 2016
Year Ended April 1, 2016 Year-Over-Year
Growth Rate (2) (3)
Revenue Guidance
Range Actual Constant
Currency (4) (5) Revenue range $6,210 -
$6,350 (5.0)% - (2.9)%
0.0% - 2.3%
Year Ended April 1, 2016 Year-Over-Year Increase
(Decrease) (2) Operating Margin Guidance and
Reconciliation Range Actual
Constant Currency (4) (5) GAAP operating
margin 14.5% - 15.5% (320) bps - (220) bps (108) bps - (8) bps Add
back: Stock-based compensation 4.6% Other non-GAAP adjustments 9.9%
Non-GAAP operating margin 29.0%
- 30.0% 170 bps - 270 bps 330 bps - 430 bps
Year Ended April 1, 2016 Year-Over-Year Growth Rate
(2) Earnings Per Share Guidance and Reconciliation
Range Actual GAAP diluted
earnings per share range $0.86 - $0.96 (31.7)% - (23.8)% Add back:
Stock-based compensation, net of taxes $0.30 Other non-GAAP
adjustments, net of taxes $0.64 Non-GAAP diluted
earnings per share range $1.80 - $1.90 (4.3)% - 1.1%
Second Quarter Fiscal Year 2016
Three Months Ended October 2, 2015 Year-Over-Year Growth
Rate
Revenue Guidance
Range Actual Constant
Currency (4) Revenue range $1,485 - $1,525
(8.2)% - (5.7)%
(2.5)% - 0.1%
Three Months Ended October 2, 2015 Year-Over-Year
Increase (Decrease) Operating Margin Guidance and
Reconciliation Range Actual
Constant Currency (4) GAAP operating margin
13.0% - 15.0% (850) bps - (650) bps (634) bps - (433) bps Add back:
Stock-based compensation 4.4% Other non-GAAP adjustments 8.6%
Non-GAAP operating margin 26.0%
- 28.0% (270) bps - (70) bps (103) bps - 96 bps
Three Months Ended October 2,
2015
Year-Over-Year Growth Rate
Earnings Per Share Guidance and Reconciliation
Range Actual GAAP diluted earnings per
share range $0.19 - $0.22 (45.7)% - (37.1)% Add back: Stock-based
compensation, net of taxes $0.07 Other non-GAAP adjustments, net of
taxes $0.14 Non-GAAP diluted earnings per share range
$0.40 - $0.43 (16.7)% - (10.4)% (1) This
presentation includes non-GAAP measures. Non-GAAP financial
measures are supplemental and should not be considered a substitute
for financial information presented in accordance with GAAP. For a
detailed explanation of these non-GAAP measures, please see
Appendix A. (2) We have a 52/53-week fiscal accounting year.
The fiscal year ended April 1, 2016 consists of 52 weeks, whereas
the fiscal year ended April 3, 2015 consisted of 53 weeks.
(3) Growth rates are calculated using fiscal year 2015 non-GAAP
revenue. (4) Management refers to growth rates adjusting for
currency fluctuations in foreign currency exchange rates so that
the business results can be viewed without the impact of these
fluctuations. We compare the percent change of the results from one
period to another period in order to provide a consistent framework
for assessing how our underlying businesses performed. To exclude
the effects of foreign currency rate fluctuations, current and
comparative prior period results for entities reporting in
currencies other than United States dollars are converted into
United States dollars at the actual exchange rates in effect during
the respective prior periods. (5) These calculations are
adjusted for the extra week in the June 2014 quarter.
SYMANTEC CORPORATIONExplanation of
Non-GAAP MeasuresAppendix A
Objective of non-GAAP measures: We
believe our presentation of non-GAAP financial measures, when taken
together with corresponding GAAP financial measures, provides
meaningful supplemental information regarding the Company’s
operating performance for the reasons discussed below. Our
management team uses these non-GAAP financial measures in assessing
the Company’s operating results, as well as when planning,
forecasting and analyzing future periods. We believe that these
non-GAAP financial measures also facilitate comparisons of the
Company’s performance to prior periods and to our peers and that
investors benefit from an understanding of the non-GAAP financial
measures. Non-GAAP financial measures are supplemental and should
not be considered a substitute for financial information presented
in accordance with GAAP.
Stock-based compensation: Consists
of expenses for employee stock options, restricted stock units,
performance based awards and our employee stock purchase plan
determined in accordance with the authoritative guidance on
stock-based compensation. When evaluating the performance of our
individual business units and developing short- and long-term
plans, we do not consider stock-based compensation charges. Our
management team is held accountable for cash-based compensation,
but we believe that management is limited in its ability to project
the impact of stock-based compensation and accordingly is not held
accountable for its impact on our operating results. Although
stock-based compensation is necessary to attract and retain quality
employees, our consideration of stock-based compensation places its
primary emphasis on overall shareholder dilution rather than the
accounting charges associated with such grants. In addition, for
comparability purposes, we believe it is useful to provide a
non-GAAP financial measure that excludes stock-based compensation
in order to better understand the long-term performance of our core
business and to facilitate the comparison of our results to the
results of our peer companies. Furthermore, unlike cash-based
compensation, the value of stock-based compensation is determined
using complex formulas that incorporate factors, such as market
volatility, that are beyond our control.
Three Months Ended July 3, July 4, 2015 2014
Cost of revenue $ 5 $ 6 Sales and marketing 19 17 Research and
development 19 13 General and administrative 10 7 Total stock-based
compensation $ 53 $ 43
Amortization of intangible assets:
When conducting internal development of intangible assets,
accounting rules require that we expense the costs as incurred. In
the case of acquired businesses, however, we are required to
allocate a portion of the purchase price to the accounting value
assigned to intangible assets acquired and amortize this amount
over the estimated useful lives of the acquired intangible assets.
The acquired company, in most cases, has itself previously expensed
the costs incurred to develop the acquired intangible assets, and
the purchase price allocated to these assets is not necessarily
reflective of the cost we would incur in developing the intangible
asset. We eliminate these amortization charges from our non-GAAP
operating results to provide better comparability of pre- and
post-acquisition operating results and comparability to results of
businesses utilizing internally developed intangible assets.
Restructuring, separation, and
transition: We have engaged in various restructuring,
separation, and transition activities over the past several years
that have resulted in costs associated with severance, facilities,
transition, and other related costs. Separation and other related
costs consist of consulting and disentanglement costs incurred to
separate our security and information management businesses into
standalone companies, as well as costs to prune selected product
lines that do not fit either the Company’s growth or margin
objectives. Transition and other related costs consist of
consulting charges associated with the implementation of new
Enterprise Resource Planning systems. Each restructuring,
separation, and transition activity has been a discrete event based
on a unique set of business objectives or circumstances, and each
has differed from the others in terms of its operational
implementation, business impact and scope. We do not engage in
restructuring, separation, or transition activities in the ordinary
course of business. While our operations previously benefited from
the employees and facilities covered by our various restructuring
and separation charges, these employees and facilities have
benefited different parts of our business in different ways, and
the amount of these charges has varied significantly from period to
period. We believe that it is important to understand these charges
and we believe that investors benefit from excluding these charges
from our operating results to facilitate a more meaningful
evaluation of current operating performance and comparisons to past
operating performance.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150811005631/en/
MEDIA CONTACT:Symantec Corp.Kristen Batch,
650-527-5152kristen_batch@symantec.comorINVESTOR
CONTACT:Symantec Corp.Sean Hazlett,
650-527-6273sean_hazlett@symantec.com
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