Symantec results top estimates; shares rise
Wed Jan 28, 2009 5:53pm EST
Q3 EPS 42 cents tops Wall St view 32 cents
* Q4 view EPS 33-to-35 cents vs Wall St view 33 cents
* Shares up 3.7 percent in after-hours trade (Adds comments from analyst, COO Enrique Salem, byline)
By Jim Finkle
BOSTON, Jan 28 (Reuters) - Symantec Corp (SYMC.O), the top maker of security and data backup software, reported a $6.8 billion quarterly loss because of writedowns but operating profit beat Wall Street forecasts as sales stayed steady and it cut costs.
Symantec shares rose 3.6 percent in after-hours trade.
Symantec's backup software division sells products that boost the efficiency of storage hardware, which helps companies reduce equipment costs at a time when they are looking to cut expenses. Security is a service that businesses need to invest in, even in rough economic times, because the risks of a breach are too costly.
"With their back against the wall they delivered a very solid quarter in a brutal spending environment," said FBR Capital Markets analyst Daniel Ives.
It reported a fiscal third-quarter net loss of $6.8 billion, or $8.23 per share, versus a profit of $132 million, or 15 cents, a year earlier. Revenue fell 0.1 percent to $1.5 billion.
The company's operating margin widened to 32.2 percent versus 27.4 percent a year earlier as cost-cutting helped it offset a slight decline in revenue.
The bulk of the loss was due to a $7 billion impairment charge that Symantec took to write down the value of goodwill on its books.
Profit excluding items in the third-quarter, ended Jan 2, came in at 42 cents per share on a non-GAAP basis, beating Wall Street projections for 32 cents per share.
The company also said it expects earnings per share in the fourth quarter, ending April 3, to range between 33 cents and 35 cents on revenue of $1.49 billion to $1.54 billion. Analysts on average were forecasting that it would earn 33 cents per share, according to Reuters Estimates.
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http://www.reuters.com/article/rbssTechMediaTelecomNews/idUSN2853946120090128?rpc=77