Yahoo Finance Must-know: An overview of Symantec’s 1Q15 earnings review
Must-know: Symantec Corp's 1Q15 earnings review (Part 1 of 12)
Symantec Corporation
Symantec (SYMC) is a leading security software developer, known worldwide for its Norton antivirus software. According to the International Data Corporation (or IDC), Symantec commands ~13% to 14% of the market share in the purpose built backup appliance (or PBBA) market. EMC (EMC) leads the market with ~60% of the market share, followed by Symantec and IBM (IBM) at ~13% to 14% and ~5% to 6% market share, respectively.
According to IDC, PBBA is a stand-alone disk-based solution. It utilizes software, disk arrays, server engines or nodes, and data coming from backup applications—like NetWorker, NetBackup, and TSM—to catalog, index, schedule, and perform data movement.
1Q15 earnings review
On July 23, 2014, Symantec reported its first quarter of 2015 (1Q15) financial results. For the three months ending 1Q15 results, content, subscription, and maintenance contributed ~91% towards consolidated revenues. Licensing followed at ~9%. Symantec reported revenues of $1.74 billion—an increase of 2% on a year-over-year basis. Net income, operating cash flows, and earnings per share (or EPS) were recorded at $236 million, $293 million, and $0.34, respectively.
Exchange-traded funds (or ETFs) that have significant exposure to Symantec include the iShares North American Tech-Software ETF (IGV) and the First Trust NASDAQ-100-Technology Sector Index Fund (QTEC). These ETFs are likely to benefit when the company posts positive results.
The chart above shows the contributions of various segments towards Symantec’s consolidated revenues. User productivity and protection forms the majority of Symantec’s revenues. It’s followed by information management.
Operating segment highlights
For 1Q15, information security revenue grew 3% on a year-over-year basis to $345 million. Trust Services and data loss prevention businesses drove the growth by offsetting the weakness in mail, web, and data center security businesses. The user productivity and protection segment revenues and information management remained almost flat at $740 million and $650 million, respectively.
Enterprise subscription revenue grew 3% on a year-over-year basis, contributing approximately ~16% of total revenue. Implied billings also grew 3% on a year-over-year basis.
Global growth
Geographically, Europe, the Middle East, and Africa (or EMEA) grew by 5%. Americas’ contribution remained flat, though North America did well as reported by Symantec. Asia Pacific, on the other hand, showed a 2% degrowth.
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