Symantec Profits Jump On Enterprise Security, Backup Sales

Net income for the quarter ended Sept. 30 grew 34 percent to $182 million, or 24 cents a share, from $136 million, or 17 cents a share, the same period a year ago. Revenue increased 14 percent year over year to $1.7 billion. Operating margin rose to 17 percent from 14.7 percent.

Enrique Salem, president and chief executive, said demand was strong across the security company’s product portfolio. “For the fifth consecutive quarter, we met or exceeded all of our key metrics, demonstrating that our strategy is working and that we continue to execute consistently,” Salem said in a statement.

James Beer, executive VP and chief financial officer for the Mountain View, Calif.-based, company, said Symantec had a record September quarter in revenue and earnings per share. “Our results were driven by growth in enterprise security and backup, while our consumer business continues to perform well,” he said.

Revenue in the security and compliance and storage and server management segments rose 27 percent and 9 percent, respectively. Revenue from consumer products increased 11 percent. The two business units account for 65 percent of revenue, while the consumer segment represents 31 percent.

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Symantec reported a 16 percent drop in revenue from services, which accounted for 4 percent of revenue. The decrease was expected. Symantec is in the process of moving to a partner-led consulting model.

For the current fiscal quarter, Symantec forecasts revenue between $1.7 billion and $1.715 billion, an increase from 6 percent to 7 percent year over year. Earnings per share is expected to be between 25 cents and 26 cents, up 47 percent to 53 percent.