Symantec logs another record quarter

Security software company Symantec recorded another record quarter, posting revenue of $577 million for its fiscal first quarter of 2005 and net income of $131 million, or $0.37 per share, the company announced Wednesday.

Security software company Symantec recorded another record quarter, posting revenue of $577 million for its fiscal first quarter of 2005 and net income of $131 million, or $0.37 per share, the company announced Wednesday.

The Cupertino, Calif., company saw revenue increase by $186 million, or 48%, over the same quarter last year. Net income more than doubled to $131 million, from $59 million in the first quarter of fiscal 2004, driven in part by the appearance of serious new threats, including the Sasser worm in May, said Greg Myers, the company’s CFO.

The strong first-quarter performance prompted the company to raise its financial guidance for the year by $70 million, Symantec said Wednesday.

Business was split between Symantec’s consumer and enterprise groups, with consumer purchases making up 52% of total revenue and enterprise purchases 48%, Myers said.

Demand in both areas was strong, but consumer demand for the company’s security software spiked with the appearance of Sasser, driving consumer revenue up 79% over the same quarter a year earlier. Sales of enterprise products increased 24% over last year, Myers said.

“The outbreak of Sasser had a powerful impact on our consumer channel, but enterprise (revenue) grew by 29%, which is better than our peer group,” he said, referring to Symantec’s competitors.

Within the enterprise business, sales of enterprise security products accounted for 35% of total revenue. Enterprise administration products, such as the company’s life cycle management tools, accounted for 11% of total revenue and grew 27% over the year-ago quarter. Symantec’s security services business accounted for 2% of total revenue, and grew by 14% over last year.

Besides the steady stream of new threats and malicious code on the Internet, international sales helped boost Symantec’s performance, Myers said. Revenue internationally grew 51% year-over-year and represented 52% of total revenue in the first quarter. Symantec saw big increases in sales over last year in Asia (62%); Europe, the Middle East and Africa (49%), and the Americas (43%), Symantec said.

While Symantec can’t predict, and doesn’t expect, continued windfalls like the Sasser worm, the company is confident that it will finish the year stronger than it initially estimated, Myers said.

“The holiday season is usually one of our strongest periods. Assuming we meet our guidance for the September quarter, I anticipate we’ll do well as we approach the end of the calendar year,” he said.

Symantec raised its guidance for its fiscal second quarter, estimating revenue of $580 million, up from its previous forecast of $565 million, and earnings of $0.34 cents a share using generally accepted accounting principles, up from $0.32 a share, the company said.