Symantec Reports Fiscal Second Quarter 2019 Results

Symantec Corp. (NASDAQ: SYMC) today reported results for its second quarter fiscal year 2019 ended September 28, 2018.

"We delivered second quarter operating results in line or above guidance,” said Greg Clark, Symantec CEO. "We were pleased to announce the completion of our Audit Committee investigation in late September, and we look forward to recovering momentum in our Enterprise Security business in the second half of this fiscal year. In the second quarter, we won significant business in Enterprise Security, in line with our strategy of integrated cyber defense. In our Consumer Digital Safety business, our platform strategy allows us to transcend hardware refresh cycles and bring enhanced value to our customers. Global cyber risk is unprecedented. Symantec’s significant investments in cyber defense make us an essential partner for enterprises and consumers of all sizes. We are excited about our longer term outlook. We have reaffirmed our guidance for fiscal year 2019 and enter the seasonally strong second half of our fiscal year with a renewed focus on technology leadership and execution.”

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. The methods we use to produce non-GAAP results are not in accordance with GAAP and may differ from the methods used by other companies. Additional information regarding our non-GAAP measures are provided below.

Second Quarter Fiscal 2019 Financial Highlights

• GAAP revenue was $1.175 billion, non-GAAP revenue was $1.184 billion
• GAAP operating margin of 8.7%, non-GAAP operating margin of 31.7%
• GAAP diluted EPS was $(0.01), non-GAAP diluted EPS was $0.42
• Cash flow from operating activities was $240 million

Symantec's Board of Directors has declared a quarterly cash dividend of $0.075 per common share to be paid on December 12, 2018, to all stockholders of record as of the close of business on November 19, 2018.

Update of Previously Released Financial Results for Q4 and Fiscal Year 2018 and Q1 Fiscal Year 2019

Subsequent to the release of our financial results for the first quarter fiscal year 2019 on August 2, 2018, we revised our fourth quarter of fiscal year 2018 and first quarter of fiscal 2019 unaudited financial information to reflect the adjustments related to the completion of our Audit Committee investigation on September 24, 2018, as well as the completion of the audit of our fiscal year 2018 financial statements. These adjustments included a deferral of revenue resulting from further management review of a transaction that was reviewed by the Audit Committee during the investigation, certain adjustments to stock-based compensation and certain other operating expense and income tax adjustments. We have revised our financial results for the fourth quarter and fiscal year 2018 and first quarter fiscal year 2019 in our earnings materials posted to our investor relations website to reflect these adjustments.

For additional details regarding Symantec’s results and outlook, please see the Supplemental Information on the investor relations page of our website at: http://www.symantec.com/invest.

Conference Call

Symantec has scheduled a conference call for 5:00 p.m. ET / 2:00 p.m. PT today to discuss its results for its second quarter fiscal year 2019 ended September 28, 2018 and to review guidance. Interested parties may access the conference call through Symantec’s Investor Relations website at http://investor.symantec.com/investor-relations/events-calendar/. 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 and give the operator conference ID number 1384327.

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. All prices noted are in U.S. dollars and are valid only in the United States.

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 "Third Quarter and Fiscal Year 2019 Guidance” and the statements regarding Symantec’s other projected financial and business results, including demand for its products and services, Symantec’s enhanced capabilities, and Symantec’s continued cost and operating efficiencies. 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: our ability to continue to integrate and fully achieve the expected benefits from acquired businesses; matters arising out of our completed Audit Committee investigation and the ongoing U.S. Securities and Exchange Commission investigation; 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; the ability of Symantec to achieve its cost and operating efficiency goals; the anticipated growth of certain market segments; Symantec’s sales pipeline and business strategy; fluctuations in tax rates and foreign currency exchange rates and the impact of any tax reform legislation; the impact related to Symantec’s future adoption of the new revenue and other accounting standards; the timing and market acceptance of new product releases and upgrades; and the successful development of new products and the degree to which these products 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 most recent reports on Form 10-K and Form 10-Q.

USE OF NON-GAAP FINANCIAL INFORMATION: We use non-GAAP measures of adjusted revenues, operating margin, net income and earnings per share, which are adjusted from results based on GAAP to include certain purchase accounting adjustments and exclude certain expenses, gains and losses. Additionally, we provide the non-GAAP metric of implied billings. These non-GAAP financial measures are provided to enhance the user’s understanding of our past financial performance and our prospects for the future. Our management team uses these non-GAAP financial measures in assessing Symantec’s performance, as well as in planning and forecasting future periods. These non-GAAP financial measures are not computed according to GAAP and the methods we use to compute them 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. Readers 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 including Supplemental Information, on the investor relations page of our website at: http://www.symantec.com/invest.

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