Symantec sees slowdown in security sales

The company reports a $249 million loss, saying customers are moving away from multiyear licenses

Citing a slowdown in sales of its security and compliance products and weakness in international currencies, Symantec said Wednesday that it would post a US$249 million loss for the quarter ending April 3.

Sales at the storage and security company totalled US$1.47 billion for the quarter, the final period of its fiscal 2009 year. That's down nearly 5 percent from the year-ago quarter, thanks in large part to a 22 per cent drop in software licensing revenue.

The company is trying to rein in costs in the midst of a global recession and a change in management. Symantec switched CEOs at the end of the quarter, with Enrique Salem taking over from former CEO John Thompson in early April. Late last year Symantec laid off staff throughout the company. It hasn't said how many positions it terminated, but the cuts amounted to 4.5 per cent of total salary costs.

On Wednesday, Salem indicated that he doesn't anticipate any more job cuts, so long as current economic conditions do not deteriorate further. "We think we've got our cost structure where it needs to be," he said in an interview.

While the company posted slight declines this quarter in its dominant storage and consumer businesses, its Security and Compliance division, which makes up about 25 per cent of Symantec's business, was hardest hit. Revenue in that group dropped 14 per cent year-over-year.

Results in these segments were affected by weakening international currencies, but security sales in particular were hurt as some customers moved away from multiyear software licenses, Salem said. "We're seeing a shortening of that to more one-year deals," he said. "I think that's indicative of the environment we're in."

Symantec's rival McAfee bucked general economic trends last week, reporting that its sales were up 21 percent year-over-year.

Another factor affecting Symantec's earnings was a US$413 million goodwill writedown. Symantec has acquired dozens of companies over the past few years, and it began analyzing and writing off some of the goodwill value on its books in late 2009. That analysis is now complete, the company said.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags symantec

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Robert McMillan

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?