Symantec reports record quarterly earnings

Double-digit growth is seen in all business segments

Symantec reported another quarter of strong earnings for its fiscal third quarter of 2005 on Wednesday, with net income of $164 million ($0.22 per share). Income increased 38 percent from the same quarter last year, when Symantec reported earnings of $111 million, or $0.16 per share.

The strong showing is the latest in a string of impressive quarterly announcements for the Cupertino, California, software company, which announced plans in December to acquire data backup and file system software maker Veritas Software for $13.5 billion in stock. Symantec's growth in the quarter ended Dec. 31 was driven by revenue increases across the board, including an almost 50 percent increase in revenue from sales of Symantec's consumer software and a 33 percent jump in revenue from sales to enterprises, according to a statement from Symantec.

Net revenue for the fiscal third quarter was $695 million, up 41 percent compared with $494 million in the same quarter of the previous year, Symantec said.

The company recorded double-digit percentage growth in all its business segments, with a large number of high-value transactions worldwide, including more than 25 valued at more than $1 million each, according to a statement. In all, Symantec signed 132 more deals with large enterprises than it did in the comparable quarter of its 2004 fiscal year. Sales to enterprises -- a stated priority for Chief Executive Officer John Thompson -- were 48 percent of Symantec's total revenue for the quarter. Consumer software sales were 52 percent of the company's fiscal third quarter revenue.

Despite bounding growth in the enterprise space, sales to consumers outpaced growth in other areas, increasing by 49 percent year-over-year, Symantec said.

Sales outside of the U.S. were again a bright spot for Symantec. International revenue held steady at 54 percent of total revenue in the fiscal third quarter, the same as in the fiscal third quarter of 2004. International revenues grew by 41 percent since the same quarter of fiscal 2004. The company particularly improved its standing in Japan and the Asia/Pacific region, where revenue grew 53 percent, now accounting for 14 percent of Symantec's total revenue, the company said.

Symantec predicted a strong fiscal fourth quarter, with revenue between $690 million and $710 million and earnings per share of around $.23. For the fiscal year, Symantec is predicting revenue of $2.57 billion ($.80 per share).

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