Symantec (NASDAQ: SYMC) on Wednesday reported the results of its fourth quarter and the fiscal year 2011, ended April 1, 2011. The company reported GAAP revenue for the fiscal fourth quarter of $1.67 billion, up 9 percent year-over-year and up 8 percent after adjusting for currency.
For the fiscal year, GAAP revenue was $6.19 billion, up 3 percent year-over-year and up 4 percent after adjusting for currency. For the quarter, the VeriSign security business that Symantec acquired for $1.28 billion in May 2010, generated revenue of $61 million. The PGP and GuardianEdge acquisitions, which Symantec acquired for $300 million and $70 million respectively, in April of 2010, generated revenue of $20 million.
“We closed our fiscal year surpassing expectations across each of our key financial metrics, driven by market share gains and growth in backup, software-as-a-service, data loss prevention and consumer. In addition, our recent acquisitions performed above expectations for the third consecutive quarter,” said Enrique Salem, president and chief executive officer, Symantec. Cash flow from operating activities for the fourth quarter of fiscal year 2011 was $689 million compared with $703 million for the same quarter last year. Symantec ended the quarter and fiscal year with cash, cash equivalents and short-term investments of $2.958 billion.
Cash flow from operating activities for fiscal year 2011 was $1.79 billion compared with $1.69 billion for fiscal year 2010, an increase of 6 percent.
Key Fourth Quarter Highlights
GAAP Revenue of $1.67 billion GAAP operating margin 14.3 percent
Non-GAAP Operating Margin of 24.1 percent
Non-GAAP Earnings Per Share of $0.38
GAAP Deferred Revenue of $3.82 billion
Cash Flow from Operations of $689 million
GAAP net income of $168 million
Fiscal Year 2011 Highlights
GAAP Revenue of $6.19 billion
Non-GAAP Operating Margin of 24.8 percent
Non-GAAP Earnings Per Share of $1.42
Cash Flow from Operations of $1.79 billion
During the fourth quarter of fiscal year 2011, Symantec repurchased approximately 11 million shares for $180 million at an average price of $17.86. During the fiscal year 2011, the company repurchased 57 million shares at an average price of $15.39, equivalent to $870 million. Symantec has $877 million remaining in the current board authorized stock repurchase program.
Business Segment and Geographic Highlights For the quarter:
• Symantec’s Consumer segment represented 31 percent of total revenue and increased 6 percent year-over-year (5 percent after adjusting for currency)
• The Security and Compliance segment represented 27 percent of total revenue and increased 24 percent year-over-year (21 percent after adjusting for currency)
• The Storage and Server Management segment represented 37 percent of total revenue and increased 8 percent year-over-year (7 percent after adjusting for currency)
• Services represented 5 percent of total revenue and declined 21 percent year-over-year (22 percent after adjusting for currency) as expected due to the company’s move to a partner-led consulting model
International revenue represented 51 percent of total revenue in the fourth quarter of fiscal year 2011 and increased 10 percent year-over-year (8 percent after adjusting for currency). The Europe, Middle East and Africa region represented 29 percent of total revenue for the quarter and increased 4 percent year-over-year on an actual and currency-adjusted basis. The Asia Pacific/Japan revenue for the quarter represented 16 percent of total revenue and increased 22 percent year-over-year (12 percent after adjusting for currency). The Americas, including the United States, Latin America and Canada, represented 55 percent of total revenue and increased 9 percent year-over-year on an actual and currency-adjusted basis.
First Quarter Fiscal Year 2012 Guidance
Guidance assumes an exchange rate of $1.42 per Euro for the June 2011 quarter versus the actual weighted average and end of period rate of $1.26 per Euro for the June 2010 quarter.
For the first quarter of fiscal year 2012, ending July 1, 2011, revenue is estimated between $1.570 billion and $1.590 billion, up 10 to 11 percent year-over-year as reported.
Deferred revenue is expected to be in the range of $3.60 billion and $3.63 billion, up 20 to 21 percent year-over-year as reported.
Symantec just held its Vision User Conference in Las Vegas last week when the company announced a series of updates to some of its core product offerings, spanning across its Endpoint Protection solutions to Enterprise Vault Archiving Software.