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 m
oving 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.