[November 01, 2018] |
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Symantec Reports Fiscal Second Quarter 2019 Results
Symantec Corp. (NASDAQ: SYMC) today reported results for its second
quarter fiscal year 2019 ended September 28, 2018.
"We delivered second quarter operating results in line or above
guidance," said Greg Clark, Symantec CEO. "We were pleased to announce
the completion of our Audit Committee investigation in late September,
and we look forward to recovering momentum in our Enterprise Security
business in the second half of this fiscal year. In the second quarter,
we won significant business in Enterprise Security, in line with our
strategy of integrated cyber defense. In our Consumer Digital Safety
business, our platform strategy allows us to transcend hardware refresh
cycles and bring enhanced value to our customers. Global cyber risk is
unprecedented. Symantec's significant investments in cyber defense make
us an essential partner for enterprises and consumers of all sizes. We
are excited about our longer term outlook. We have reaffirmed our
guidance for fiscal year 2019 and enter the seasonally strong second
half of our fiscal year with a renewed focus on technology leadership
and execution."
To help readers understand our past financial performance and our future
results, we supplement the financial results that we provide in
accordance with generally accepted accounting principles, or GAAP, with
non-GAAP financial measures. The methods we use to produce non-GAAP
results are not in accordance with GAAP and may differ from the methods
used by other companies. Additional information regarding our non-GAAP
measures are provided below.
Second Quarter Fiscal 2019 Financial Highlights
-
GAAP revenue was $1.175 billion, non-GAAP revenue was $1.184 billion
-
GAAP operating margin of 8.7%, non-GAAP operating margin of 31.7%
-
GAAP diluted EPS was $(0.01), non-GAAP diluted EPS was $0.42
-
Cash flow from operating activities was $240 million
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Third Quarter and Fiscal Year 2019 Guidance
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Third Quarter Fiscal 2019
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GAAP
|
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Non-GAAP
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Revenue
|
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$1,153M - $1,183M
|
|
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$1,160M - $1,190M
|
Operating Margin
|
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6%
|
|
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30%
|
EPS (Diluted)
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$0.02 - $0.05
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$0.37 - $0.41
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Fiscal Year 2019
|
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Revenue
|
|
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$4,640M - $4,760M
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|
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$4,670M - $4,790M
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Operating Margin
|
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|
5% - 7%
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30%
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EPS (Diluted)
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($0.08) - $0.02
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$1.47 - $1.57
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Symantec's Board of Directors has declared a quarterly cash dividend of
$0.075 per common share to be paid on December 12, 2018, to all
stockholders of record as of the close of business on November 19, 2018.
Update of Previously Released Financial Results for Q4 and Fiscal
Year 2018 and Q1 Fiscal Year 2019
Subsequent to the release of our financial results for the first quarter
fiscal year 2019 on August 2, 2018, we revised our fourth quarter of
fiscal year 2018 and first quarter of fiscal 2019 unaudited financial
information to reflect the adjustments related to the completion of our
Audit Committee investigation on September 24, 2018, as well as the
completion of the audit of our fiscal year 2018 financial statements.
These adjustments included a deferral of revenue resulting from further
management review of a transaction that was reviewed by the Audit
Committee during the investigation, certain adjustments to stock-based
compensation and certain other operating expense and income tax
adjustments. We have revised our financial results for the fourth
quarter and fiscal year 2018 and first quarter fiscal year 2019 in our
earnings materials posted to our investor relations website to reflect
these adjustments.
For additional details regarding Symantec's results and outlook, please
see the Supplemental Information on the investor relations page of our
website at: http://www.symantec.com/invest.
Conference Call
Symantec has scheduled a conference call for 5:00 p.m. ET / 2:00 p.m. PT
today to discuss its results for its second quarter fiscal year 2019
ended September 28, 2018 and to review guidance. Interested parties may
access the conference call through Symantec's Investor Relations website
at http://investor.symantec.com/investor-relations/events-calendar/.
For telephone access to the conference, call (877) 475-6198 within the
United States or (970) 297-2372 from outside the United States. Please
call 15 minutes early and give the operator conference ID number 1384327.
A replay and our prepared remarks will be available on the investor
relations home page shortly after the call is completed.
About Symantec
Symantec Corporation (NASDAQ: SYMC), the world's leading cyber security
company, helps organizations, governments and people secure their most
important data wherever it lives. Organizations across the world look to
Symantec for strategic, integrated solutions to defend against
sophisticated attacks across endpoints, cloud and infrastructure.
Likewise, a global community of more than 50 million people and families
rely on Symantec's Norton and LifeLock product suites to protect their
digital lives at home and across their devices. Symantec operates one of
the world's largest civilian cyber intelligence networks, allowing it to
see and protect against the most advanced threats. For additional
information, please visit www.symantec.com or
connect with us on Facebook,
Twitter,
and LinkedIn.
NOTE TO EDITORS: If you would like additional information
on Symantec Corporation and its products, please visit the Symantec News
Room at http://www.symantec.com/news.
All prices noted are in U.S. dollars and are valid only in the United
States.
Symantec, the Symantec logo and the Checkmark logo are trademarks or
registered trademarks of Symantec Corporation or its affiliates in the
U.S. and other countries. Other names may be trademarks of their
respective owners.
Forward-Looking Statements: This press release contains
statements which may be considered forward-looking within the meaning of
the U.S. federal securities laws, including the information contained
under the caption "Third Quarter and Fiscal Year 2019 Guidance" and the
statements regarding Symantec's other projected financial and business
results, including demand for its products and services, Symantec's
enhanced capabilities, and Symantec's continued cost and operating
efficiencies. These statements are subject to known and unknown risks,
uncertainties and other factors that may cause our actual results,
levels of activity, performance or achievements to differ materially
from results expressed or implied in this press release. Such risk
factors include those related to: our ability to continue to integrate
and fully achieve the expected benefits from acquired businesses;
matters arising out of our completed Audit Committee investigation and
the ongoing U.S. Securities and Exchange Commission investigation;
general economic conditions; fluctuations and volatility in Symantec's
stock price; the ability of Symantec to successfully execute strategic
plans; the ability to maintain customer and partner relationships; the
ability of Symantec to achieve its cost and operating efficiency goals;
the anticipated growth of certain market segments; Symantec's sales
pipeline and business strategy; fluctuations in tax rates and foreign
currency exchange rates and the impact of any tax reform legislation;
the impact related to Symantec's future adoption of the new revenue and
other accounting standards; the timing and market acceptance of new
product releases and upgrades; and the successful development of new
products and the degree to which these products gain market acceptance.
Actual results may differ materially from those contained in the
forward-looking statements in this press release. Symantec assumes no
obligation, and does not intend, to update these forward-looking
statements as a result of future events or developments. Additional
information concerning these and other risk factors is contained in the
Risk Factors sections of Symantec's most recent reports on Form 10-K and
Form 10-Q.
USE OF NON-GAAP FINANCIAL INFORMATION: We use non-GAAP measures
of adjusted revenues, operating margin, net income and earnings per
share, which are adjusted from results based on GAAP to include certain
purchase accounting adjustments and exclude certain expenses, gains and
losses. Additionally, we provide the non-GAAP metric of implied
billings. These non-GAAP financial measures are provided to enhance the
user's understanding of our past financial performance and our prospects
for the future. Our management team uses these non-GAAP financial
measures in assessing Symantec's performance, as well as in planning and
forecasting future periods. These non-GAAP financial measures are not
computed according to GAAP and the methods we use to compute them may
differ from the methods used by other companies. Non-GAAP financial
measures are supplemental, should not be considered a substitute for
financial information presented in accordance with GAAP and should be
read only in conjunction with our consolidated financial statements
prepared in accordance with GAAP. Readers are encouraged to review the
reconciliation of our non-GAAP financial measures to the comparable GAAP
results, which is attached to our quarterly earnings release and which
can be found, along with other financial information including
Supplemental Information, on the investor relations page of our website
at: http://www.symantec.com/invest.
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|
|
|
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SYMANTEC CORPORATION
|
Condensed Consolidated Balance Sheets (1)
|
(In millions, unaudited)
|
|
|
|
|
|
|
|
|
|
|
September 28, 2018
|
|
|
March 30, 2018 (2)
|
|
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|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
2,147
|
|
|
$
|
1,774
|
Short-term investments
|
|
|
|
289
|
|
|
|
388
|
Accounts receivable, net
|
|
|
|
537
|
|
|
|
809
|
Other current assets
|
|
|
|
445
|
|
|
|
522
|
Total current assets
|
|
|
|
3,418
|
|
|
|
3,493
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
|
778
|
|
|
|
778
|
Intangible assets, net
|
|
|
|
2,433
|
|
|
|
2,643
|
Goodwill
|
|
|
|
8,328
|
|
|
|
8,319
|
Other long-term assets
|
|
|
|
1,277
|
|
|
|
526
|
Total assets
|
|
|
$
|
16,234
|
|
|
$
|
15,759
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
158
|
|
|
$
|
168
|
Accrued compensation and benefits
|
|
|
|
165
|
|
|
|
262
|
Current portion of long-term debt
|
|
|
|
597
|
|
|
|
-
|
Contract liabilities (3)
|
|
|
|
2,113
|
|
|
|
2,368
|
Other current liabilities
|
|
|
|
378
|
|
|
|
372
|
Total current liabilities
|
|
|
|
3,411
|
|
|
|
3,170
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
4,442
|
|
|
|
5,026
|
Long-term contract liabilities (3)
|
|
|
|
633
|
|
|
|
735
|
Deferred income tax liabilities
|
|
|
|
652
|
|
|
|
592
|
Long-term income taxes payable
|
|
|
|
1,066
|
|
|
|
1,126
|
Other long-term liabilities
|
|
|
|
80
|
|
|
|
87
|
Total liabilities
|
|
|
|
10,284
|
|
|
|
10,736
|
|
|
|
|
|
|
|
Total stockholders' equity
|
|
|
|
5,950
|
|
|
|
5,023
|
Total liabilities and stockholders' equity
|
|
|
$
|
16,234
|
|
|
$
|
15,759
|
|
|
|
|
|
|
|
(1) We adopted the new revenue recognition accounting
standard (ASC 606) on a modified retrospective basis during Q1 FY19.
The results for Q2 FY19 and the first six months in FY19 are
presented under the new revenue recognition accounting standard,
while prior period amounts are not adjusted and continue to be
reported under the prior revenue recognition accounting standard
(ASC 605).
|
(2) Derived from audited consolidated financial
statements.
|
(3) As a result of the new revenue recognition
accounting standard (ASC 606), amounts we have previously referred
to as deferred revenue are now referred to as contract
liabilities, which consist of the total of what is now identified
as deferred revenue and customer deposit liabilities in all
schedules throughout this document.
|
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|
SYMANTEC CORPORATION
|
Condensed Consolidated Statements of Operations (1)
|
(In millions, except per share data, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
September 28, 2018
|
|
|
September 29, 2017
|
|
|
September 28, 2018
|
|
|
September 29, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
|
$
|
1,175
|
|
|
|
$
|
1,240
|
|
|
|
$
|
2,331
|
|
|
|
$
|
2,415
|
|
Cost of revenues
|
|
|
|
256
|
|
|
|
|
262
|
|
|
|
|
505
|
|
|
|
|
519
|
|
Gross profit
|
|
|
|
919
|
|
|
|
|
978
|
|
|
|
|
1,826
|
|
|
|
|
1,896
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
|
|
|
|
365
|
|
|
|
|
434
|
|
|
|
|
751
|
|
|
|
|
867
|
|
Research and development
|
|
|
|
231
|
|
|
|
|
241
|
|
|
|
|
468
|
|
|
|
|
474
|
|
General and administrative
|
|
|
|
114
|
|
|
|
|
160
|
|
|
|
|
247
|
|
|
|
|
309
|
|
Amortization of intangible assets
|
|
|
|
51
|
|
|
|
|
55
|
|
|
|
|
104
|
|
|
|
|
114
|
|
Restructuring, transition and other costs
|
|
|
|
56
|
|
|
|
|
97
|
|
|
|
|
152
|
|
|
|
|
185
|
|
Total operating expenses
|
|
|
|
817
|
|
|
|
|
987
|
|
|
|
|
1,722
|
|
|
|
|
1,949
|
|
Operating income (loss)
|
|
|
|
102
|
|
|
|
|
(9
|
)
|
|
|
|
104
|
|
|
|
|
(53
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
(52
|
)
|
|
|
|
(57
|
)
|
|
|
|
(104
|
)
|
|
|
|
(141
|
)
|
Other expense, net
|
|
|
|
(22
|
)
|
|
|
|
(3
|
)
|
|
|
|
(41
|
)
|
|
|
|
(9
|
)
|
Income (loss) from continuing operations before income taxes
|
|
|
|
28
|
|
|
|
|
(69
|
)
|
|
|
|
(41
|
)
|
|
|
|
(203
|
)
|
Income tax expense (benefit)
|
|
|
|
36
|
|
|
|
|
(53
|
)
|
|
|
|
32
|
|
|
|
|
(77
|
)
|
Loss from continuing operations
|
|
|
|
(8
|
)
|
|
|
|
(16
|
)
|
|
|
|
(73
|
)
|
|
|
|
(126
|
)
|
Income (loss) from discontinued operations, net of income taxes
|
|
|
|
-
|
|
|
|
|
4
|
|
|
|
|
5
|
|
|
|
|
(19
|
)
|
Net loss
|
|
|
$
|
(8
|
)
|
|
|
$
|
(12
|
)
|
|
|
$
|
(68
|
)
|
|
|
$
|
(145
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per share - basic and diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
$
|
(0.01
|
)
|
|
|
$
|
(0.03
|
)
|
|
|
$
|
(0.12
|
)
|
|
|
$
|
(0.21
|
)
|
Discontinued operations
|
|
|
$
|
-
|
|
|
|
$
|
0.01
|
|
|
|
$
|
0.01
|
|
|
|
$
|
(0.03
|
)
|
Net loss per share - basic and diluted
|
|
|
$
|
(0.01
|
)
|
|
|
$
|
(0.02
|
)
|
|
|
$
|
(0.11
|
)
|
|
|
$
|
(0.24
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding - basic and diluted
|
|
|
|
630
|
|
|
|
|
615
|
|
|
|
|
627
|
|
|
|
|
612
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) We adopted the new revenue recognition accounting
standard (ASC 606) on a modified retrospective basis during Q1
FY19. The results for Q2 FY19 and the first six months in FY19 are
presented under the new revenue recognition accounting standard,
while prior period amounts are not adjusted and continue to be
reported under the prior revenue recognition accounting standard
(ASC 605).
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SYMANTEC CORPORATION
|
Condensed Consolidated Statements of Cash Flows
|
(In millions, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
September 28, 2018
|
|
|
September 29, 2017 (1)
|
|
|
September 28, 2018
|
|
|
September 29, 2017 (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
$
|
(8
|
)
|
|
|
$
|
(12
|
)
|
|
|
$
|
(68
|
)
|
|
|
$
|
(145
|
)
|
(Income) loss from discontinued operations, net of income taxes
|
|
|
|
-
|
|
|
|
|
(4
|
)
|
|
|
|
(5
|
)
|
|
|
|
19
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization and depreciation
|
|
|
|
153
|
|
|
|
|
163
|
|
|
|
|
305
|
|
|
|
|
328
|
|
Impairment of long-lived assets
|
|
|
|
3
|
|
|
|
|
6
|
|
|
|
|
7
|
|
|
|
|
20
|
|
Stock-based compensation expense
|
|
|
|
97
|
|
|
|
|
176
|
|
|
|
|
210
|
|
|
|
|
323
|
|
Deferred income taxes
|
|
|
|
45
|
|
|
|
|
(127
|
)
|
|
|
|
3
|
|
|
|
|
(189
|
)
|
Other
|
|
|
|
39
|
|
|
|
|
6
|
|
|
|
|
18
|
|
|
|
|
32
|
|
Change in operating assets and liabilities, net of acquisitions:
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable, net
|
|
|
|
(35
|
)
|
|
|
|
(73
|
)
|
|
|
|
286
|
|
|
|
|
115
|
|
Accounts payable
|
|
|
|
(31
|
)
|
|
|
|
52
|
|
|
|
|
(12
|
)
|
|
|
|
20
|
|
Accrued compensation and benefits
|
|
|
|
(4
|
)
|
|
|
|
(7
|
)
|
|
|
|
(81
|
)
|
|
|
|
(75
|
)
|
Contract liabilities
|
|
|
|
(5
|
)
|
|
|
|
(6
|
)
|
|
|
|
(111
|
)
|
|
|
|
(27
|
)
|
Income taxes payable
|
|
|
|
(66
|
)
|
|
|
|
28
|
|
|
|
|
(67
|
)
|
|
|
|
30
|
|
Other assets
|
|
|
|
60
|
|
|
|
|
(50
|
)
|
|
|
|
55
|
|
|
|
|
(9
|
)
|
Other liabilities
|
|
|
|
(8
|
)
|
|
|
|
18
|
|
|
|
|
31
|
|
|
|
|
(21
|
)
|
Net cash provided by continuing operating activities
|
|
|
|
240
|
|
|
|
|
170
|
|
|
|
|
571
|
|
|
|
|
421
|
|
Net cash provided by (used in) discontinued operating activities
|
|
|
|
-
|
|
|
|
|
7
|
|
|
|
|
-
|
|
|
|
|
(31
|
)
|
Net cash provided by operating activities
|
|
|
|
240
|
|
|
|
|
177
|
|
|
|
|
571
|
|
|
|
|
390
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to property and equipment
|
|
|
|
(51
|
)
|
|
|
|
(25
|
)
|
|
|
|
(95
|
)
|
|
|
|
(72
|
)
|
Payments for acquisitions, net of cash acquired
|
|
|
|
(12
|
)
|
|
|
|
(353
|
)
|
|
|
|
(17
|
)
|
|
|
|
(361
|
)
|
Proceeds from maturities and sale of short-term investments
|
|
|
|
35
|
|
|
|
|
-
|
|
|
|
|
99
|
|
|
|
|
-
|
|
Purchase of short-term investments
|
|
|
|
-
|
|
|
|
|
(201
|
)
|
|
|
|
-
|
|
|
|
|
(201
|
)
|
Other
|
|
|
|
(2
|
)
|
|
|
|
(1
|
)
|
|
|
|
(7
|
)
|
|
|
|
-
|
|
Net cash used in investing activities
|
|
|
|
(30
|
)
|
|
|
|
(580
|
)
|
|
|
|
(20
|
)
|
|
|
|
(634
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Repayments of debt
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(2,010
|
)
|
Net proceeds from sales of common stock under employee stock
incentive plans
|
|
|
|
2
|
|
|
|
|
63
|
|
|
|
|
6
|
|
|
|
|
74
|
|
Tax payments related to restricted stock units
|
|
|
|
(11
|
)
|
|
|
|
(22
|
)
|
|
|
|
(53
|
)
|
|
|
|
(83
|
)
|
Dividends and dividend equivalents paid
|
|
|
|
(50
|
)
|
|
|
|
(48
|
)
|
|
|
|
(110
|
)
|
|
|
|
(114
|
)
|
Payment for dissenting shareholder settlement
|
|
|
|
-
|
|
|
|
|
(68
|
)
|
|
|
|
-
|
|
|
|
|
(68
|
)
|
Net cash used in financing activities
|
|
|
|
(59
|
)
|
|
|
|
(75
|
)
|
|
|
|
(157
|
)
|
|
|
|
(2,201
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate fluctuations on cash and cash equivalents
|
|
|
|
(5
|
)
|
|
|
|
8
|
|
|
|
|
(21
|
)
|
|
|
|
34
|
|
Change in cash and cash equivalents
|
|
|
|
146
|
|
|
|
|
(470
|
)
|
|
|
|
373
|
|
|
|
|
(2,411
|
)
|
Beginning cash and cash equivalents
|
|
|
|
2,001
|
|
|
|
|
2,306
|
|
|
|
|
1,774
|
|
|
|
|
4,247
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending cash and cash equivalents (including cash and cash
equivalents held for sale)
|
|
|
$
|
2,147
|
|
|
|
$
|
1,836
|
|
|
|
$
|
2,147
|
|
|
|
$
|
1,836
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The impact of assets and liabilities reclassified as
held for sale during the period was not considered in the changes in
operating assets and liabilities within cash flows from operating
activities.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SYMANTEC CORPORATION
|
Reconciliation of Selected GAAP Measures to Non-GAAP Measures
(1) (2)
|
(Dollars in millions, except per share data, unaudited)
|
|
|
|
|
Three Months Ended
|
|
|
|
September 28, 2018
|
|
|
September 29, 2017
|
|
|
|
|
|
|
|
Net revenues
|
|
|
$
|
1,175
|
|
|
|
$
|
1,240
|
|
Contract liabilities fair value adjustment
|
|
|
|
9
|
|
|
|
|
36
|
|
Net revenues (Non-GAAP)
|
|
|
$
|
1,184
|
|
|
|
$
|
1,276
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
$
|
102
|
|
|
|
$
|
(9
|
)
|
Contract liabilities fair value adjustment
|
|
|
|
9
|
|
|
|
|
36
|
|
Stock-based compensation
|
|
|
|
97
|
|
|
|
|
176
|
|
Amortization of intangible assets
|
|
|
|
110
|
|
|
|
|
116
|
|
Restructuring, transition and other costs
|
|
|
|
56
|
|
|
|
|
97
|
|
Acquisition-related costs
|
|
|
|
1
|
|
|
|
|
19
|
|
Operating income (Non-GAAP)
|
|
|
$
|
375
|
|
|
|
$
|
435
|
|
|
|
|
|
|
|
|
Operating margin
|
|
|
|
8.7
|
%
|
|
|
|
(0.7
|
%)
|
Operating margin (Non-GAAP)
|
|
|
|
31.7
|
%
|
|
|
|
34.1
|
%
|
|
|
|
|
|
|
|
Net loss
|
|
|
$
|
(8
|
)
|
|
|
$
|
(12
|
)
|
Adjustments to income (loss) from continuing operations:
|
|
|
|
|
|
|
Contract liabilities fair value adjustment
|
|
|
|
9
|
|
|
|
|
36
|
|
Stock-based compensation
|
|
|
|
97
|
|
|
|
|
176
|
|
Amortization of intangible assets
|
|
|
|
110
|
|
|
|
|
116
|
|
Restructuring, transition and other costs
|
|
|
|
56
|
|
|
|
|
97
|
|
Acquisition-related costs
|
|
|
|
1
|
|
|
|
|
19
|
|
Non-cash interest expense
|
|
|
|
6
|
|
|
|
|
5
|
|
Loss from equity interest
|
|
|
|
34
|
|
|
|
|
-
|
|
Other income tax effects and adjustments
|
|
|
|
(28
|
)
|
|
|
|
(165
|
)
|
Total adjustment from continuing operations
|
|
|
|
285
|
|
|
|
|
284
|
|
Total adjustment from discontinued operations
|
|
|
|
-
|
|
|
|
|
(4
|
)
|
Net income (Non-GAAP)
|
|
|
$
|
277
|
|
|
|
$
|
268
|
|
|
|
|
|
|
|
|
Diluted net income (loss) per share (3)
|
|
|
$
|
(0.01
|
)
|
|
|
$
|
(0.02
|
)
|
Adjustments to diluted net income (loss) per share
|
|
|
|
|
|
|
Contract liabilities fair value adjustment
|
|
|
|
0.01
|
|
|
|
|
0.06
|
|
Stock-based compensation
|
|
|
|
0.15
|
|
|
|
|
0.29
|
|
Amortization of intangible assets
|
|
|
|
0.17
|
|
|
|
|
0.19
|
|
Restructuring, transition and other costs
|
|
|
|
0.09
|
|
|
|
|
0.16
|
|
Acquisition-related costs
|
|
|
|
0.00
|
|
|
|
|
0.03
|
|
Non-cash interest expense
|
|
|
|
0.01
|
|
|
|
|
0.01
|
|
Loss from equity interest
|
|
|
|
0.05
|
|
|
|
|
-
|
|
Other income tax effects and adjustments
|
|
|
|
(0.04
|
)
|
|
|
|
(0.27
|
)
|
Total adjustment from continuing operations
|
|
|
|
0.45
|
|
|
|
|
0.46
|
|
Total adjustment from discontinued operations
|
|
|
|
-
|
|
|
|
|
(0.01
|
)
|
Incremental dilution effect
|
|
|
|
(0.02
|
)
|
|
|
|
(0.04
|
)
|
Diluted net income per share (Non-GAAP)
|
|
|
$
|
0.42
|
|
|
|
$
|
0.40
|
|
|
|
|
|
|
|
|
Diluted weighted-average shares outstanding
|
|
|
|
630
|
|
|
|
|
615
|
|
Incremental dilution
|
|
|
|
27
|
|
|
|
|
51
|
|
Diluted weighted-average shares outstanding (Non-GAAP) (4)
|
|
|
|
657
|
|
|
|
|
666
|
|
|
|
|
|
|
|
|
(1) This presentation includes non-GAAP measures.
Non-GAAP financial measures are supplemental and should not be
considered a substitute for financial information presented in
accordance with GAAP. For a detailed explanation of these non-GAAP
measures, please see Appendix A.
|
(2) We adopted the new revenue recognition accounting
standard (ASC 606) on a modified retrospective basis during Q1 FY19.
The results for Q2 FY19 and the first six months in FY19 are
presented under the new revenue recognition accounting standard,
while prior period amounts are not adjusted and continue to be
reported under the prior revenue recognition accounting standard
(ASC 605).
|
(3) Net income per share amounts may not add due to
rounding.
|
(4) Diluted GAAP and non-GAAP weighted-average shares
outstanding are the same, except in periods in which there is a GAAP
loss from continuing operations. In accordance with GAAP, we do not
present dilution for GAAP in periods in which there is a loss from
continuing operations. However, if there is non-GAAP net income, we
present dilution for non-GAAP weighted-average shares outstanding in
an amount equal to the dilution that would have been presented had
there been GAAP income from continuing operations for the period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SYMANTEC CORPORATION
|
Reconciliation of GAAP Revenue to Non-GAAP Implied Billings (1)
(2)
|
(In millions, unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
September 28, 2018
|
|
|
September 29, 2017
|
|
|
|
|
|
|
|
Total Company Implied Billings (Non-GAAP)
|
|
|
|
|
|
|
Total revenue
|
|
|
$
|
1,175
|
|
|
|
$
|
1,240
|
|
Add: Contract liabilities (end of period)
|
|
|
|
2,746
|
|
|
|
|
2,514
|
|
Less: Contract liabilities (beginning of period)
|
|
|
|
(2,767
|
)
|
|
|
|
(2,794
|
)
|
Other Contract liabilities adjustments (3)
|
|
|
|
6
|
|
|
|
|
296
|
|
Implied billings (Non-GAAP)
|
|
|
$
|
1,160
|
|
|
|
$
|
1,256
|
|
|
|
|
|
|
|
|
Enterprise Security Implied Billings (Non-GAAP)
|
|
|
|
|
|
|
Total revenue
|
|
|
$
|
574
|
|
|
|
$
|
686
|
|
Add: Contract liabilities (end of period)
|
|
|
|
1,717
|
|
|
|
|
1,484
|
|
Less: Contract liabilities (beginning of period)
|
|
|
|
(1,714
|
)
|
|
|
|
(1,784
|
)
|
Other Contract liabilities adjustments (3)
|
|
|
|
6
|
|
|
|
|
296
|
|
Implied billings (Non-GAAP)
|
|
|
$
|
583
|
|
|
|
$
|
682
|
|
|
|
|
|
|
|
|
Consumer Digital Safety Implied Billings (Non-GAAP)
|
|
|
|
|
|
|
Total revenue
|
|
|
$
|
601
|
|
|
|
$
|
554
|
|
Add: Contract liabilities (end of period)
|
|
|
|
1,029
|
|
|
|
|
1,030
|
|
Less: Contract liabilities (beginning of period)
|
|
|
|
(1,053
|
)
|
|
|
|
(1,010
|
)
|
Implied billings (Non-GAAP)
|
|
|
$
|
577
|
|
|
|
$
|
574
|
|
|
|
|
|
|
|
|
(1) This presentation includes non-GAAP measures.
Non-GAAP financial measures are supplemental and should not be
considered a substitute for financial information presented in
accordance with GAAP. For a detailed explanation of these non-GAAP
measures, please see Appendix A.
|
(2) We adopted the new revenue recognition accounting
standard (ASC 606) on a modified retrospective basis during Q1 FY19.
The results for Q2 FY19 and the first six months in FY19 are
presented under the new revenue recognition accounting standard,
while prior period amounts are not adjusted and continue to be
reported under the prior revenue recognition accounting standard
(ASC 605).
|
(3) Other contract liabilities adjustments include
contract liabilities acquired during the period and the change in
contract liabilities related to Veritas discontinued operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SYMANTEC CORPORATION
|
Guidance and Reconciliation of GAAP to Non-GAAP Revenue,
Operating Income and EPS (1) (2)
|
(Dollars in millions, except per share data, unaudited)
|
|
Third Quarter Fiscal Year 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue Guidance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP revenue range
|
|
|
$1,153
|
|
|
|
-
|
|
|
|
$1,183
|
|
Adjustment:
|
|
|
|
|
|
|
|
|
|
Contract liabilities fair value adjustment
|
|
|
|
|
|
$7
|
|
|
|
|
Non-GAAP revenue range
|
|
|
$1,160
|
|
|
|
-
|
|
|
|
$1,190
|
|
|
|
|
|
|
|
|
|
|
|
Operating Margin Guidance and Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating margin
|
|
|
|
|
|
6
|
%
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Contract liabilities fair value adjustment
|
|
|
|
|
|
1
|
%
|
|
|
|
Stock-based compensation
|
|
|
|
|
|
8
|
%
|
|
|
|
Amortization of intangible assets
|
|
|
|
|
|
9
|
%
|
|
|
|
Restructuring, transition and other costs
|
|
|
|
|
|
6
|
%
|
|
|
|
Non-GAAP operating margin
|
|
|
|
|
|
30
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share Guidance and Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted loss per share range (3)
|
|
|
$0.02
|
|
|
|
-
|
|
|
|
$0.05
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Contract liabilities fair value adjustment
|
|
|
|
|
|
$0.01
|
|
|
|
|
Stock-based compensation
|
|
|
|
|
|
$0.14
|
|
|
|
|
Amortization of intangible assets
|
|
|
|
|
|
$0.17
|
|
|
|
|
Restructuring, transition and other costs
|
|
|
|
|
|
$0.11
|
|
|
|
|
Other income and expense adjustments
|
|
|
|
|
|
$0.01
|
|
|
|
|
Income tax effects and adjustments
|
|
|
|
|
|
($0.09
|
)
|
|
|
|
Non-GAAP diluted earnings per share range (3)
|
|
|
$0.37
|
|
|
|
-
|
|
|
|
$0.41
|
|
Fiscal Year 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue Guidance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP revenue range
|
|
|
$4,640
|
|
|
|
-
|
|
|
|
$4,760
|
|
Adjustment:
|
|
|
|
|
|
|
|
|
|
Contract liabilities fair value adjustment
|
|
|
|
|
|
$30
|
|
|
|
|
Non-GAAP revenue range
|
|
|
$4,670
|
|
|
|
-
|
|
|
|
$4,790
|
|
|
|
|
|
|
|
|
|
|
|
Operating Margin Guidance and Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating margin
|
|
|
5
|
%
|
|
|
-
|
|
|
|
7
|
%
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Contract liabilities fair value adjustment
|
|
|
|
|
|
1
|
%
|
|
|
|
Stock-based compensation
|
|
|
9
|
%
|
|
|
-
|
|
|
|
8
|
%
|
Amortization of intangible assets
|
|
|
|
|
|
9
|
%
|
|
|
|
Restructuring, transition and other costs
|
|
|
|
|
|
6
|
%
|
|
|
|
Non-GAAP operating margin
|
|
|
30
|
%
|
|
|
-
|
|
|
|
30
|
%
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share Guidance and Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted income (loss) per share range (3)
|
|
|
($0.08
|
)
|
|
|
-
|
|
|
|
$0.02
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Contract liabilities fair value adjustment
|
|
|
|
|
|
$0.05
|
|
|
|
|
Stock-based compensation
|
|
|
|
|
|
$0.63
|
|
|
|
|
Amortization of intangible assets
|
|
|
|
|
|
$0.70
|
|
|
|
|
Restructuring, transition and other costs
|
|
|
|
|
|
$0.43
|
|
|
|
|
Other income and expense adjustments
|
|
|
|
|
|
$0.13
|
|
|
|
|
Income tax effects and adjustments
|
|
|
|
|
|
($0.32
|
)
|
|
|
|
Incremental dilution effect
|
|
|
|
|
|
($0.07
|
)
|
|
|
|
Non-GAAP diluted earnings per share range (3)
|
|
|
$1.47
|
|
|
|
-
|
|
|
|
$1.57
|
|
|
|
|
|
|
|
|
|
|
|
(1) This presentation includes non-GAAP measures.
Non-GAAP financial measures are supplemental and should not be
considered a substitute for financial information presented in
accordance with GAAP. For a detailed explanation of these non-GAAP
measures, please see Appendix A.
|
(2) Amounts may not add due to rounding.
|
(3) GAAP and non-GAAP income per share and adjustments
per share are calculated using diluted share count of 654 million
for Q3 FY19. GAAP income (loss) per share and adjustments per
share are calculated using basic share count of 633 million for
FY19, and non-GAAP income per share are calculated using diluted
share count of 660 million for FY19.
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20181101006084/en/
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