Symantec Closes Fiscal Year 2003 with Record Revenues and Earnings; Quarterly Revenue Grows 26 Percent Year-Over-Year

Business Wire, April 23, 2003

Business Editors/High-Tech Writers

CUPERTINO, Calif.--(BUSINESS WIRE)--April 23, 2003

Symantec Corp. (Nasdaq:SYMC), the world leader in Internet security, today reported results for the fiscal fourth quarter and fiscal year ended March 28, 2003. Symantec posted revenue for the quarter of $390 million, a 26 percent increase compared to $311 million for the same quarter last year. Revenue for fiscal year 2003 was $1.407 billion, a 31 percent increase compared to $1.071 billion for fiscal year 2002.

"This is a strong final quarter that closes an exceptional year for Symantec," said John W. Thompson, Symantec Chairman and CEO. "Both the quarter and the year came in well ahead of expectations with record revenue and earnings during very challenging times. Our diverse set of customers, best-of-breed security solutions and unmatched geographic diversity all contributed to our success."

GAAP Results: Net income for the fiscal fourth quarter was $68 million, compared to $5 million from the same quarter last year. Earnings per share was $0.41, compared to earnings per share of $0.03 for the same quarter last year. For fiscal year 2003, Symantec reported net income of $248 million, compared to a net loss of $28 million for fiscal year 2002. Earnings per share was $1.54, compared to a net loss per share of $0.20 for fiscal year 2002.

Non-GAAP Results: Non-GAAP net income for the fiscal fourth quarter was $78 million, compared to $65 million from the same quarter last year. Non-GAAP earnings per share was $0.47, compared to earnings per share of $0.41 for the year-ago quarter. For fiscal year 2003, Symantec reported non-GAAP net income of $280 million, compared to $201 million in fiscal year 2002. Non-GAAP earnings per share was $1.72, compared to earnings per share of $1.30 for fiscal year 2002. Non-GAAP results, as outlined in the attached consolidated statements, exclude expenses from the amortization of goodwill, the amortization of other intangibles from acquisitions, acquired in-process research and development and restructuring and site closures as well as related income tax benefits. See "Use of Non-GAAP Financial Information" below.

Revenue Components

For the quarter, Symantec's worldwide enterprise security business represented 41 percent of total revenue and grew 32 percent compared to the same quarter last year. Symantec's consumer business grew 32 percent and represented 43 percent of total revenue.

International revenues represented 51 percent of total revenue in the fourth quarter and grew 28 percent over the same quarter last year. Sales in Europe, Middle East and Africa led the increase with 36 percent year-over-year growth while sales in the United States grew 23 percent.

Quarterly Highlights

-- Symantec signed 152 contracts worldwide worth more than

$100,000 each, including 28 worth more than $300,000 each and

9 worth more than $1 million each, during the quarter.

Symantec signed new or extended agreements with customers

including the United States Department of Treasury and

Department of State; the New York State Office Of Cyber

Security and Critical Infrastructure Coordination; General

Dynamics, a market leader in defense systems and civilian

transportation; Tribune Company, one of the country's premier

media companies, operating businesses in broadcasting,

publishing and on the Internet, reaching more than 80 percent

of U.S. households; Maytag Corporation, a leading producer of

home and commercial appliances; CNF Inc., a $4.8 billion

management company of global supply chain services for

commercial and industrial customers; Sealed Air, a leading

global manufacturer of a wide range of food, protective and

specialty packaging materials and systems; Belgacom, Belgium's

leading telecommunications operator; MG Technologies, an

international engineering and chemicals technology group based

in Germany, and Unipol, an Italian insurance company.

-- The industry's premier global early warning system was

unveiled with the release of Symantec DeepSight Threat

Management System 4.0. This unique early warning system

provides enterprises a comprehensive birds-eye view of global

Internet attacks in a timely manner, delivering quick analyses

and countermeasures to protect against or even avoid malicious

threats. The system gathers data from more than 19,000

partners in over 180 countries -- the most extensive data

network in the world.

-- Symantec launched the first in a series of integrated mail

security products, introducing a multi-layered spam prevention

solution integrated with award-winning virus protection. With

Symantec AntiVirus for SMTP Gateways 3.1, enterprises now have

a single solution for turning their Internet e-mail gateways

into a first line of defense against both the growing

onslaught of unsolicited e-mail and the danger of malicious

code.

-- The Internet Security Threat Report was released, which

provides the most comprehensive analysis of trends in cyber

security activity. The report covers network-based attack

activity, vulnerability discovery, and malicious code.