By Jim Finkle
BOSTON, May 5 (Reuters) - Symantec Corp, the top maker of security and backup software, reported quarterly revenue ahead of Wall Street projections, led by strong sales of its anti-virus software for consumers.
The results, which sent its shares up 5 percent, contrasted sharply with earnings from rival McAfee Inc, the No. 2 maker of security software, which missed Wall Street forecasts last week.
Symantec reported non-GAAP revenue, which excludes deferred revenue related to acquisitions, rose 3 percent to $1.535 billion in its fiscal fourth quarter ended April 2. That beat the average analyst forecast of $1.519 billion, according to Thomson Reuters I/B/E/S.
'This was a huge inflection point, especially after McAfee's print,' said FBR Capital Markets analyst Daniel Ives.
Symantec posted profit, excluding items, of 40 cents per share in its fiscal fourth quarter, ahead of the average analyst forecast of 37 cents.
The company managed to beat Wall Street projections only because it had a 4 cent per share benefit from a lower-than- expected tax rate, Egbert said.
Still, the stock rallied on the higher-than-expected sales, which helped Symantec stand apart from other security companies that either reported results in line with expectations or below forecasts.
'Investors like revenue growth,' she said. 'Given the weakness elsewhere in security, it looks like a nice quarter.'
Consumer sales rose 9 percent as more customers bought Symantec's top-of-the-line security software, Norton 360, rather than less expensive programs. Revenue at the Symantec division that sells security software to businesses rose 2 percent.
Backup software sales fell 1 percent, their narrowest decline since the quarter that ended in December 2008.
Chief Financial Officer James Beer said in an interview that backup software sales have not dropped since Oracle Corp , one of the division's biggest resellers, announced it would stop promoting Symantec's products.
Beer said Oracle will continue to sell Symantec's backup software, but its sales staff will not receive any compensation for selling the products.
The Mountain View, California-based company forecast first-quarter earnings per share of 35 cents to 36 cents, compared with an analyst forecast of 36 cents.
Symantec reported quarterly net income of $184 million, or 23 cents per share, compared with a year-earlier loss of $264 million, or 32 cents.
Its shares rose to $17.06 in after-hours trading from a Nasdaq close of $16.25.
(Reporting by Jim Finkle; editing by Andre Grenon) Keywords: SYMANTEC/ (jim.finkle@thomsonreuters.com + 1 617 856 4344; Reuters Messaging: jim.finkle.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
BOSTON, May 5 (Reuters) - Symantec Corp, the top maker of security and backup software, reported quarterly revenue ahead of Wall Street projections, led by strong sales of its anti-virus software for consumers.
The results, which sent its shares up 5 percent, contrasted sharply with earnings from rival McAfee Inc, the No. 2 maker of security software, which missed Wall Street forecasts last week.
Symantec reported non-GAAP revenue, which excludes deferred revenue related to acquisitions, rose 3 percent to $1.535 billion in its fiscal fourth quarter ended April 2. That beat the average analyst forecast of $1.519 billion, according to Thomson Reuters I/B/E/S.
'This was a huge inflection point, especially after McAfee's print,' said FBR Capital Markets analyst Daniel Ives.
Symantec posted profit, excluding items, of 40 cents per share in its fiscal fourth quarter, ahead of the average analyst forecast of 37 cents.
The company managed to beat Wall Street projections only because it had a 4 cent per share benefit from a lower-than- expected tax rate, Egbert said.
Still, the stock rallied on the higher-than-expected sales, which helped Symantec stand apart from other security companies that either reported results in line with expectations or below forecasts.
'Investors like revenue growth,' she said. 'Given the weakness elsewhere in security, it looks like a nice quarter.'
Consumer sales rose 9 percent as more customers bought Symantec's top-of-the-line security software, Norton 360, rather than less expensive programs. Revenue at the Symantec division that sells security software to businesses rose 2 percent.
Backup software sales fell 1 percent, their narrowest decline since the quarter that ended in December 2008.
Chief Financial Officer James Beer said in an interview that backup software sales have not dropped since Oracle Corp , one of the division's biggest resellers, announced it would stop promoting Symantec's products.
Beer said Oracle will continue to sell Symantec's backup software, but its sales staff will not receive any compensation for selling the products.
The Mountain View, California-based company forecast first-quarter earnings per share of 35 cents to 36 cents, compared with an analyst forecast of 36 cents.
Symantec reported quarterly net income of $184 million, or 23 cents per share, compared with a year-earlier loss of $264 million, or 32 cents.
Its shares rose to $17.06 in after-hours trading from a Nasdaq close of $16.25.
(Reporting by Jim Finkle; editing by Andre Grenon) Keywords: SYMANTEC/ (jim.finkle@thomsonreuters.com + 1 617 856 4344; Reuters Messaging: jim.finkle.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.