Symantec woes spur spending diet

Symantec woes spur spending diet

Summary: For Symantec, first comes the profit warning then comes the spending diet. Symantec delivered a clunker of a fiscal third quarter and said it's going to cut $200 million in expenses.

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TOPICS: Symantec
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For Symantec, first comes the profit warning then comes the spending diet.

Symantec delivered a clunker of a fiscal third quarter and said it's going to cut $200 million in expenses.

"With a disappointing quarter behind us, we are mSymantec woes spur spending dietoving to better align our costs with our new revenue expectations," said John W. Thompson, Symantec chairman and chief executive officer. "I am confident that we have the right strategy in place; however, we must sharpen our execution."

Specifically, Symantec "has identified a number of areas to achieve its target: reduce new hires; reduce contractor and consulting spending; reduce travel spending; consolidate additional facilities; and reduce the current workforce in certain business functions and geographies."

In other words, Symantec got a little bloated. On a GAAP (generally accepted accounting principles) basis, the company reported net income of $114 million, or 12 cents a share, on revenue of $1.3 billion. Non-GAAP earnings were 26 cents a share, a penny better than lowered estimates.

For the fiscal fourth quarter ending March 30, Symantec projects revenue between $1.24 billion and $1.27 billion. Earnings are projected to be between 4 cents a share and 6 cents a share. Non-GAAP earnings per share are expected to be 18 cents and 20 cents. Thomson Financial estimates call for 21 cents a share. 

Topic: Symantec

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  • They've been going downhill for years.

    And if the antivirus product is their only big product, they'd better find a new field to get into and ruin. Their products slow and buggy and once in a while even let virii through. Virii other software catches.

    They need to play catch-up. Not "drop 'expenses' because the poor starving CEO can't buy another yacht." Make something worth buying. That's what we're told to do.
    HypnoToad72
  • Everything they touch gets worse

    Symantec has been buying up utility apps/companies at an alarming rate, and every time they do so the products either stagnate to never see an update again (see: Partition Magic 8), or become terribly bug ridden (see: Norton anything). It is no wonder profits are slumping as word of mouth gets around and people start looking elsewhere, or refuse to upgrade...
    boxmonkey
  • Cuts

    I know from my former co-workers (Veritas) that the cuts included an elimination of the Database Editions group. I wonder who is going to do that work now? Probably will be done in their Pune development center.

    http://kevinclosson.wordpress.com/about/
    kevinclosson
  • Symantec Diet

    Maybe they will put their products on a diet and reduce the resource hogging.
    hrosita@...