Symantec reports record earnings - again

Symantec reports record earnings - again

Symantec reported another quarter of strong earnings for its fiscal third quarter of 2005, with net income of $US164 million. Income increased 38 per cent from the same quarter last year, when Symantec reported earnings of $US111 million.

The strong showing is the latest in a string of impressive quarterly announcements for the software company, which announced plans in December to acquire data backup and file system software maker, Veritas, for $US13.5 billion in stock.

Symantec's growth in the quarter ended December 31 was driven by revenue increases across the board, including an almost 50 per cent increase in revenue from sales of Symantec's consumer software and a 33 per cent jump in revenue from sales to enterprises, according to a statement from Symantec.

Net revenue for the fiscal third quarter was $US695 million, up 41 per cent compared with $US494 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 $US1 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 CEO John Thompson - were 48 per cent of Symantec's total revenue for the quarter. Consumer software sales were 52 per cent 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 per cent year-over-year, Symantec said.

Sales outside the US were again a bright spot for Symantec. International revenue held steady at 54 per cent of total revenue in the fiscal third quarter, the same as in the fiscal third quarter of 2004.

International revenues grew by 41 per cent since the same quarter of fiscal 2004.

The company particularly improved its standing in Japan and the Asia-Pacific region, where revenue grew 53 per cent, and now accounted for 14 per cent of Symantec's total revenue, the company said.

Symantec predicted a strong fiscal fourth quarter, with revenue between $US690 million and $US710 million. For the fiscal year, Symantec is predicting revenue of $US2.57 billion.

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