(By Balasheshan) Security software provider Symantec Corp. (NASDAQ:SYMC) reported an
increase in fourth quarter earnings due to a gain from sale of joint
venture. Adjusted earnings came in-line with consensus, for the second
time in the last five quarters. However, the company guided first
quarter earnings below Street's view, sending its shares down 1.40% in
Earnings for the fourth quarter grew to $559 million or $0.76 per
share from $168 million or $0.22 per share. Adjusted earnings were $283
million or $0.38 per share, compared to $297 million or $0.38 per share
Revenue increased to $1.681 billion from $1.673 billion. Analysts had
expected a profit of $0.38 per share on revenue of $1.68 billion.
Deferred revenue rose 4% to $3.973 billion, while after adjusting of currency deferred revenue increased by 5%.
Consumer revenue rose to $523 million from $514 million, while
security and compliance revenue increased to $503 million from $465
million. Storage and service management revenue fell to $591 million
from $626 million, while services revenue declined to $64 million from
Gross margin decreased to 82.9% from 83.9%, while adjusted gross margin declined to 84.6% from 85.8%.
ahead into the first quarter, the company expects adjusted earnings of
$0.37 to $0.38 per share and revenue of $1.645 billion to $1.660
billion, while Street predicts profit of $0.39 per share on revenue of
$1.66 billion. Guidance assumes an exchange rate of $1.32 per Euro for
the June 2012 quarter versus the actual weighted average of $1.44 and
end of period rate of $1.45 per Euro.
Deferred revenue is expected to be in the range of $3.715 billion and
$3.735 billion for the first quarter, compared to $3.689 billion, up
0.7% to 1.3% as reported, and up between 2.8% and 3.4% after adjusting
for currency. GAAP earnings per share are estimated between $0.18 and
SYMC closed Wednesday's regular session down 0.12% at $16.43. The
stock has been trading between $14.94 and $20.50 for the past 52 weeks.