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Symantec net rose 34 pct but outlook disappoints

October 26, 2011

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SAN FRANCISCO—Symantec Corp. said Wednesday that its net income rose 34 percent and revenue rose 14 percent as the company was helped by stronger sales of data-backup and security software to corporations.

Its revenue guidance was slightly lower than the target set by analysts, however. The stock fell almost 3 percent in extended trading.

The Mountain View-based company, the world's leading maker of computer security software, said it earned $182 million, or 24 cents per share, in the quarter ended Sept. 30. That compares with $136 million, or 17 cents per share, in the year-ago period.

Excluding one-time items, the company earned 39 cents per share. Analysts expected 39 cents per share on that basis, according to FactSet.

Revenue was $1.68 billion, up from $1.48 billion a year ago. Analysts expected $1.67 billion, according to FactSet.

The quarter that Symantec reported Wednesday after the market closed was the company's fiscal second quarter.

For its fiscal third quarter, Symantec expects earnings of 40 cents per share to 41 cents per share, excluding items, and for revenue to rise 6 to 7 percent over last year, to between $1.70 billion and $1.72 billion. Analysts expected earnings of 41 cents per share, excluding items, and $1.73 billion in revenue.

Enrique Salem, Symantec's CEO, said rising computing needs are sustaining demand for its products.

"We continue to see good demand for our products and services across the portfolio," he said in a statement.

Shares fell 49 cents, or 2.7 percent, to $18 in extended trading, after the results were reported.