Symantec Corp. reported the results of its fourth quarter and fiscal year 2014 after the bell on Thursday, stating that GAAP revenue for the quarter (ended March 28, 2014) came in at $1.63 billion, down 7 percent year-over-year.
The company said that it ended fiscal year with cash, cash equivalents and short-term investments of $4.08 billion compared to $4.75 billion, a decrease of 14 percent year-over-year, which the company attributed to a principal payment for matured and settled convertible notes.
GAAP Results for the Fourth Quarter of Fiscal Year 2014:
• GAAP operating margin was 18.8 percent, up 425 basis points and up 360 basis points after adjusting for currency, resulting in GAAP earnings per share of $0.31, up 15 percent year-over-year.
• GAAP net income was $217 million, up 14 percent year-over-year.
• GAAP deferred revenue as of March 28, 2014 was $3.90 billion, down 4 percent year-over-year and down 6 percent after adjusting for currency.
• Cash flow from operating activities was $449 million, down 27 percent year-over-year.
GAAP Results for Fiscal Year 2014:
• GAAP operating margin was 17.7 percent, up 170 basis points and up 125 basis points after adjusting for currency, resulting in GAAP earnings per share of $1.28, up 21 percent year-over-year.
• GAAP net income was $898 million, up 19 percent year-over-year.
• Cash flow from operating activities was $1.28 billion, down 20 percent year-over-year.
Non-GAAP Results for the Fourth Quarter of Fiscal Year 2014:
• Non-GAAP revenue was $1.65 billion, down 6 percent year-over-year (as reported and after adjusting for currency).
• Non-GAAP operating margin was 27.3 percent, up 320 basis points and up 250 basis points after adjusting for currency, resulting in non-GAAP earnings per share of $0.47, up 7 percent year-over-year.
• Non-GAAP net income was $329 million, up 4 percent year-over-year.
Non-GAAP Results for Fiscal Year 2014:
• Non-GAAP revenue was $6.70 billion, down 3 percent year-over-year (as reported and after adjusting for currency).
• Non-GAAP operating margin was 27.5 percent, up 200 basis points and up 160 basis points after adjusting for currency, resulting in non-GAAP earnings per share of $1.92, up 9 percent year-over-year.
• Non-GAAP net income was $1.35 billion, up 8 percent year-over-year.
Symantec said that for the fiscal year 2015, revenue is expected to be $6.63 to $6.77 billion, compared to $6.70 billion in the year-ago period.
“We see further opportunities to streamline our operations and drive ongoing operating margin expansion, with the near-term goal of achieving 30 percent non-GAAP operating margin by 4Q15,” Thomas Seifert, executive vice president and chief financial officer, said in a statement. “We will also continue to return significant capital to shareholders while maintaining a strong balance sheet.”
Seifert was appointed CFO in March, replacing James Beer who in September 2013 announced he would leave the company to become the chief financial officer of McKesson Corporation.
Also in March, Symantec terminated CEO Steve Bennett, who was temporarily replaced by board member Michael Brown as interim president and chief executive officer.
“Our fourth quarter results, led by better performance from our sales teams and cost reductions, demonstrate the underlying health of our business,” Brown said in a statement. “In the new leadership team’s first 40 days, we’ve taken important steps to accelerate the pace of our transformation. There are substantial opportunities for us to improve our growth profile, maximize profitability and create value, and I’m confident we have the right team and plans in place to achieve our objectives.”
During the fiscal year 2014, the Company spent $500 million to buy back 21 million shares at an average price of $23.87.
At the end of the fourth quarter, Symantec had $658 million remaining for future repurchases in the current board authorized stock repurchase plan.
On May 5, Symantec unfolded a roadmap for a mix of product integrations and managed services the firm hopes will its customers battle sophisticated threats.
Shares of Symantec (NASDAQ:SYMC) were trading up over 5 percent in early trading Friday.
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