Symantec's Q1 earnings report disappoints amid $8 billion sale of Veritas

Symantec CEO Michael Brown asserted in the report that revenue for Q1 was actually flat when "adjusting for currency and an extra week in the June 2014 quarter."

It's already a busy day for Symantec as the security giant finalizes its own division with its Veritas spinoff.

Thanks to the timing, the software giant also went against the grain of its normal habit and published published fiscal first quarter financial results before the opening bell on Tuesday morning.

Symantec reported a net income of $117 million, or 17 cents per share (statement).

Non-GAAP earnings were 40 cents per share on a revenue of $1.499 billion.

But Wall Street was looking for earnings of 43 cents per share with $1.53 billion in revenue.

Symantec CEO Michael Brown asserted in the report that revenue for Q1 was actually flat when "adjusting for currency and an extra week in the June 2014 quarter."

Regardless, the balance sheet depicted a 14 percent drop year-over-year from $1.735 billion in revenue for the first quarter of fiscal 2015.

For the current quarter, Wall Street is looking for non-GAAP earnings of 45 cents per share with $1.54 billion in revenue.

Symantec followed up with a much softer projection, expecting earnings to fall between 40 and 43 cents a share with revenue between $1.485 billion to $1.525 billion.

As it became expected shortly before the news became official, Symantec finalized the sale of its data storage business Veritas to global asset management firm Carlyle Group LP for the tune of $8 billion.

"Reaching a definitive agreement to sell Veritas marks an important inflection point for Symantec," Brown wrote. "With a strong product pipeline of more than a dozen enterprise security products on track to be released this year, Symantec is now focused on extending its lead as the world's largest cybersecurity company."

Last October, 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.

That Information Management business -- later given the moniker Veritas in January -- was designed to consist of backup and recovery, archiving, eDiscovery, storage management, and information availability services.

Symantec 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. Symantec staffed up on the security side with two executive additions to the division's leadership last November.

Symantec has also previously promised to wrap up the deal before the end of 2015 with a previously scheduled split for this October.

"The $8 billion sale price for Veritas delivers a certain and attractive valuation, and simplifies the separation process," clarified Symantec CFO Thomas Seifert on Tuesday.

In preparation for its independence, Veritas unveiled its product portfolio and strategy in July, based heavily around NetBackup, Symantec's enterprise-grade backup product.

Amid another disappointing earnings report last quarter, Symantec CEO Michael Brown touted in prepared remarks that endpoint protection, data loss prevention, NetBackup appliances and NetBackup software "all outperformed the market this quarter."