Symantec Reports Fourth Quarter and Fiscal Year 2017 Results

Financial Highlights

• Q4 GAAP revenue $1.115 billion, up 28% year over year; non-GAAP revenue $1.176 billion, up 35% year over year
  
• Fiscal Year 2017 (FY17) GAAP revenue $4.019 billion, up 12% year over year; non-GAAP revenue $4.163 billion, up 16% year over year
  
• Q4 Enterprise Security segment GAAP revenue up 40%; FY17 Enterprise Security segment GAAP revenue up 22%
  
• Q4 Consumer Digital Safety segment GAAP revenue up 13%; FY17 Consumer Digital Safety segment GAAP revenue flat vs. FY16; LifeLock revenue contribution ahead of expectation; forecasting Consumer Digital Safety segment growth in FY18
  
• Realized over $300 million of run rate cost efficiencies and integration synergies exiting fiscal 2017, ahead of plan
  
• Debt repayment plan ahead of schedule; on track to complete existing $500 million accelerated share repurchase in Q1 fiscal year 2018
  
• Raises prior FY2018 EPS guidance

Operational Highlights

• Accelerating demand for cloud products driven by Enterprise customers designing Symantec into their future cloud security architecture
• Strong product introductions in Consumer Digital Safety and improved renewal metrics; LifeLock operating metrics above expectations
• Acquisition integration progress, rapid innovation and cloud adoption position Symantec well for fiscal year 2018

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Symantec Corp. (NASDAQ:SYMC) today reported its fourth quarter and fiscal year 2017 results, ended March 31, 2017.

Greg Clark, Symantec CEO said, “Symantec’s fourth quarter results demonstrate consistent execution relative to expectations across our Enterprise and Consumer Digital Safety businesses. The industrial logic of combining Symantec and Blue Coat is proving out, with Enterprise Security growing organically year over year and Blue Coat cloud subscription revenue growing 67%. Our Integrated Cyber Defense Platform is gaining traction with enterprise customers. Our consumer business has transformed from PC malware protection to Consumer Digital Safety, with total addressable market expansion to $10 billion. We are on-track to deliver long-term, sustainable growth and industry-leading profitability as the new Symantec.”

To help 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 including constant currency information. 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. Additional information regarding our non-GAAP definition is provided below.

Results for the Fourth Quarter of Fiscal Year 2017 (Dollars in millions, except EPS)

* Cash Flow from Operating Activities

First Quarter 2018 Guidance (Dollars in millions, except EPS and FX rate)

Fiscal Year 2018 Guidance (Dollars in millions, except EPS and FX rate)

Symantec's Board of Directors has declared a quarterly cash dividend of $0.075 per common share to be paid on June 21, 2017, to all shareholders of record as of the close of business on June 7, 2017.

Symantec will also host its 2017 Financial Analyst Day on June 8, 2017. The event will be webcast live and can be found on Symantec’s investor relations page.

Conference Call

Symantec has scheduled a conference call for 5 p.m. ET/2 p.m. PT today to discuss its fourth quarter fiscal 2017 results, ended March 31, 2017 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. For telephone access to the conference, call (877) 475-6198 within the United States or (970) 297-2372 from outside the United States. Please call 15 minutes early on May 10 and give the operator conference ID number 9642787.

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), the world’s leading cyber security company, helps organizations, governments and people secure their most important data wherever it lives. Organizations across the world look to Symantec for strategic, integrated solutions to defend against sophisticated attacks across endpoints, cloud and infrastructure. Likewise, a global community of more than 50 million people and families rely on Symantec’s Norton and LifeLock product suites to protect their digital lives at home and across their devices. Symantec operates one of the world’s largest civilian cyber intelligence networks, allowing it to see and protect against the most advanced threats. For additional information, please visit www.symantec.com or connect with us on Facebook, Twitter, and LinkedIn.

NOTE TO EDITORS: If you would like additional information on Symantec Corporation and its products, please visit the Symantec News Room at http://www.symantec.com/news.

Symantec, the Symantec Logo and the Checkmark 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 which may be considered forward-looking within the meaning of the U.S. federal securities laws, including the information contained under the caption “First Quarter 2018 Guidance (Dollars in millions, except EPS and FX rate)” and “Fiscal Year 2018 Guidance (Dollars in millions, except EPS and FX rate)” and the statements regarding Symantec’s other projected financial and business results, including demand for its products and services, and product release schedule, Symantec’s competitive advantages and market opportunities and Symantec’s cost reduction, integration and synergy efforts and outcomes. 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: changes in certificate authority standards that impact our web security business, the retention of employees of acquired companies and the ability of Symantec to successfully integrate acquired companies and to achieve expected benefits; general economic conditions; fluctuations and volatility in Symantec’s stock price; the ability of Symantec to successfully execute strategic plans; the ability to maintain customer and partner relationships; anticipated growth of certain market segments; our sales pipeline and business strategy; fluctuations in tax rates and currency exchange rates; the timing and market acceptance of new product releases and upgrades; and 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. Symantec assumes no obligation, and does not intend, to update these forward-looking statements as a result of future events or developments. Additional information concerning these and other risk factors is contained in the Risk Factors sections of Symantec’s Form 10-K for the fiscal year ended April 1, 2016 and the Quarterly Report on Form 10-Q for the fiscal quarter ended December 30, 2016.

USE OF NON-GAAP FINANCIAL INFORMATION: Our results of operations have undergone significant change due to the impact of purchase accounting on revenue and cost of revenue, certain acquisition and integration costs, discontinued operations, stock-based compensation, restructuring, transition and separation matters, charges related to the amortization of intangible assets, and certain other income and expense items that management considers unrelated to the Company’s core operations. 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 including constant currency information. 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 Reports Fourth Quarter and Fiscal Year 2017 Results

Contacts

Symantec Corp.

MEDIA CONTACT:
Kristen Batch, 650-527-5152
Kristen_Batch@symantec.com

or

INVESTOR CONTACT:
Jonathan Doros, 650-527-5523
Jonathan_Doros@symantec.com