Symantec Profit Falls, Revenue Rises Slightly

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Symantec's profit fell 12 percent for its 2010 second quarter, in part attributed to higher-than-expected sales costs related to its acquisitions of PGP, GuardianEdge and the VeriSign security business. Revenue rose 2 percent due to strong sales in backup, archiving and data loss prevention segments.

The Mountain View, Calif.-based security giant's net income fell to $136 million from $155 million, while the company's revenue rose to $1.48 billion from $1.47 billion from its second quarter in 2009, beating out the company's top end guidance from the previous quarter.

"Excluding the purchase-accounting-related deferred revenue write-downs of $49 million from our three recent acquisitions, EPS would have increased by 4 cents to 38 cents compared to 36 cents in the September 2009 quarter," said James Beer, Symantec CFO, during a conference call Wednesday.

The company also cited a drop in its consumer operating margin, driven by a onetime $10 million charge resulting from delayed subscription renewals.

Executives attributed the incremental revenue growth to strong sales in its backup and archiving business, as well as data loss prevention and its burgeoning hosted services.


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