B)SYMC analyst meeting and other
PR Stuff
CUPERTINO, Calif.--(BUSINESS WIRE)--Jan. 17, 2001--Symantec Corp. (Nasdaq:SYMC - news), a world leader in Internet security technology, today announced the ninth consecutive quarter of record revenues and earnings. Strong sales in both the enterprise and the consumer markets contributed to net revenue of $219.3 million for the third fiscal quarter 2001, ended Dec. 29, 2000. The reported results include operating results from AXENT Technologies since the acquisition date of Dec. 18, 2000. Net revenue increased 18 percent over the same quarter a year ago. Individually, Symantec posted revenues of $211.4 million for the quarter and AXENT contributed $7.9 million of the quarter's revenue.
Earnings per share before all acquisition related amortization and one-time charges for the third quarter was $0.78, an increase of 39 percent from the December 1999 earnings per share of $0.56. Net income before acquisition related amortization and one-time charges for the third quarter was $51.4 million, 45 percent higher than the December quarter last year of $35.4 million. All figures exclude the results of operations from the company's divestiture of the Visual Cafe and ACT! product lines.
``We are pleased with the strong growth in our enterprise business,'' said John W. Thompson, Symantec chairman, president and CEO. ``We are confident that Internet security will be one of the top priorities for consumers and enterprises alike in the coming year. With the addition of AXENT, Symantec offers a broad line of industry-leading solutions and services that protect customers from all types of security threats.''
Revenues from Symantec's enterprise security products accounted for 52 percent of total revenues in the December quarter, up from 45 percent last quarter. Enterprise revenues grew 30 percent from the same quarter last year. AXENT revenues contributed 2 points to the mix this quarter.
Worldwide consumer business accounted for 48 percent of revenues in the December quarter. Retail growth was 7 percent compared to a year ago.
International revenues represented 46 percent of total revenue in the December quarter. Overall, the European region grew 19 percent, the Japanese region grew 29 percent and the Asia Pacific region grew 36 percent compared to the December quarter a year ago.
Quarterly Highlights
„h Symantec completed the acquisition of AXENT Technologies, Inc. in a stock-for-stock exchange on Dec. 18, 2000.
„h Symantec's carrier-grade solutions are gaining attention in the enterprise market. Sprint has chosen Symantec's desktop security products to protect the company's residential broadband customers. EarthLink offers a co-branded Symantec Security Check site for both PC and Macintosh users in addition to providing Symantec's firewall solutions to its DSL customers. I-Gear and Mail-Gear also now support Cobalt's line of servers. In addition, Symantec is integrating its CarrierScan Server with Oracle's Internet File System.
„h Flagship accounts internationally are choosing Symantec's solutions over the competition. Symantec products are now protecting the Australian Tax Office, China Southern Airlines Company, Daimler Chrysler and Scandinavian Airlines.
„h Symantec launched several new or updated versions of its consumer software for Apple Macintosh users including Norton AntiVirus 7.0, Norton Personal Firewall 1.0, Norton Utilities 6.0, Norton SystemWorks 6.0 and Norton Internet Security 1.0.
„h Symantec also launched the following enterprise solutions: Norton AntiVirus Corporate Edition 7.5 and CarrierScan Server 2.0.
„h According to the latest information from PC Data, seven of the top 20 best selling business software comes from Symantec including Symantec's Norton AntiVirus 2001 which ranked number one.
„h Symantec products continue to receive awards and recognition. Symantec's Norton AntiVirus received its 12th 100% Award from Virus Bulletin. Symantec's Norton AntiVirus Corporate Edition received Information Security's West Coast Labs Check Mark Award. Symantec's Norton Ghost received Network World's Blue Ribbon Award recognizing the best product in its class. Spanish publication ``PC Actual'' named Symantec's Norton SystemWorks 2001 Product of the Year in its Utilities category. Symantec's Norton Internet Security 2001 was named Product of the Year in its Internet Software category.
Analyst Meeting Notes
John Thompson CEO
Greg Myers CFO
- security software getting much more attention as we added two new analysts since last q
- John
- We have been working to build new SYMC since trying to build predictable results
- 1982 founded, 1989 public
- 1990 bought the Peter Norton group
- CEO been there 2 yrs
- 1999 acquired Dellrina, not popular and cause board for transition to focus on enterprise solutions
- Acquired IBM enterprise antivirus software in 1998
- Sharpened focus on individuals and enterprise solutions
- Dec 2000 acquire Axent, takes advantage of internet security space
- 3779 employees in 37 countries, up 50% in 12 months
- 100M users of our products
- Must embrace the new employees
- 20% in development
- 80% of our senior leaders are new to their job.
- Had 65% of the leaders meet last week
- Three development units; consumer products ¡V security and small LAN users, enterprise solution division ¡V corporate desktops, service provider solution division ¡V embed security into infrastructure.
- Focus on expanding market opportunity, from PC to being out their as a software opportunity. 27B market in 2004.
- It is important that customers trust SYMC.
- Want to be proactive in viruses not reactive.
- Gary Warren, Gail Hamilton, Dana Seibert, Steve Cullen, will speak.
- Gary ¡V service provider VP
- Security is more than a firewall, 30K of hacker orientated sites on net. Firewall need to be installed at every point in the network.
- 74% of security breaches originated in the corporation
- Prior 1990, less than 10 viruses
- Now about 50K viruses
- Now seeing PDA viruses
- Viruses never go away. We fix four viruses/min on Yahoo
- 50K files submitted to SYMC last month, 90% had viruses
- 1999 saw Yahoo and other get denial of services
- Feel that everyone will be their own server ala Napster
- Feel in 2004, we could see 1M network attacks, 2M file submission to our lab, over 500K viruses, 250M internet sites
- See a barrier to entry as growth is going on rapidly
- Gigabit ethernet is becoming a standard.
- Gail Hamilton ¡V Enterprise Solution VP
- Enterprise was 52% of SYMC rev. Target 30% y2y rev growth
- A single attack could cost millions of dollars
- Seeing competition like Network Associates stumble
- Security hottest area in IT software spending
- Network devices is number issue for IT managers, security is number two
- When an attack occurs, customer want technical advice, and help cleaning up the mess.
- ESM from SYMC has 68% market share
- Beat 19 competitors in a virus test at he University of Hamburg
- MOT, C, DCX, BOA, MBL, CAT,
- Been taking virus business from Network Associates like DCX, JPM, BMW,
- CHKP has 12 reported security issues vs, Raptor had none in firewall security
- Jun quarter should have intruder alert software out and compete with ISSX
- IBM has Big Blue and SYMC has Force in Yellow
- Dana
- Won embeded security at YHOO, INKT, ORCL, T
Too long to listen further
52-Week Low on 27-Dec-2000 $27.375
Recent Price $48.00
52-Week High on 9-Mar-2000 $81.625
Market Capitalization $3.63B
Shares Outstanding 75.6M
Float 67.3M
Price/Book (mrq) 2.24
Price/Earnings (ttm) 25.11
Price/Sales (ttm) 3.92
EBITDA (ttm) $176.4M
Debt/Equity (mrq) 0
Total Cash (mrq) $715.9M
Summary
I need to hear the CC, but I like what I see so far.
Jack
