As company plans to split, Symantec posts mixed Q2 earnings

Symantec's revenue and earnings were both down from the same quarter last year, and the outlook for the next three months looks a bit soft.

Symantec published second quarter earnings after the bell on Wednesday, and the results were a bit of a mixed bag.

The security software giant reported a net income of $244 million, or 35 cents per share (statement).

Non-GAAP earnings were 48 cents per share on a revenue of $1.617 billion.

Wall Street was looking for earnings of 43 cents per share with revenue of $1.62 billion.

In light of a slight miss on revenue, CEO Michael Brown reflected on the quarter in prepared remarks, highlighting successes for enterprise endpoint security, data loss prevention, and NetBackup appliances.

Brown continued:

Symantec operates the largest civilian threat intelligence network in the world, which is a competitive advantage that makes our products and services increasingly capable of defending against sophisticated threats. In October, we released an upgrade to our flagship enterprise security product, Symantec Endpoint Protection, which improves our ability to stop targeted attacks, and we launched our Managed Adversary Threat Intelligence offering that provides enterprise customers with greater threat intelligence as to who is attacking them.

For the current quarter, Wall Street expects earnings of at least 50 cents per share and revenue of $1.70 billion.

Symantec followed up with a softer revenue guidance range of $1.65 billion to $1.69 billion with earnings between 47 and 50 cents per share.

Last month , Symantec made good upon rumors that the beleaguered tech brand would split, following a road being paved in Silicon Valley by the likes of eBay and Hewlett-Packard .

Thanks to a unanimous decision by Symantec's Board of Directors, the plan became to divide the Mountain View, Calif.-based company into two brands: one business focused on security and one business focused on information management.

The Information Management business will consist of backup and recovery, archiving, eDiscovery, storage management, and information availability services. The security business will retain consumer and enterprise endpoint security, endpoint management, encryption, mobile, Secure Socket Layer certificates, user authentication, data loss prevention, hosted and managed security, and mail, web and datacenter security services.

Highlighting $2.5 billion in revenue for the IM unit in fiscal 2014, Symantec aimed to assure shareholders in an announcement that forming "two standalone businesses will allow each entity to maximize its respective growth opportunities and drive greater shareholder value."

In Wednesday's report, Symantec CFO Thomas Seifert followed up by reiterating that "this separation will provide each business the flexibility and focus to drive growth and enhance shareholder value."

"To minimize disruption for our customers and partners, we have dedicated teams managing the separation process and our go-to-market capabilities will remain largely intact for the remainder of this fiscal year," Seifert continued.

Since then, Symantec has staffed up on the security side with two executive additions to the division's leadership team last week.

The information management business spinoff was projected to be completed by the end of December 2015.

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