Symantec Reports Record Revenue Growth In Fiscal Second Quarter

CUPERTINO, Calif. – Oct. 20, 2004 – Symantec Corp. (Nasdaq: SYMC), the global leader in information security, today reported results for the fiscal second quarter ended Oct. 1, 2004. Symantec posted revenue for the quarter of $618 million, a 44 percent increase compared to $429 million for the same quarter last year, driven by solid execution across all business segments and regions.

GAAP Results: Net income for the fiscal second quarter was $136 million, compared to $83 million for the same quarter last year. Earnings per share was $0.38, a 58 percent increase compared to earnings per share of $0.24 for the year-ago quarter.

Non-GAAP Results: Non-GAAP net income for the fiscal second quarter was $146 million, compared to $91 million for the same quarter last year. Non-GAAP earnings per share was $0.41, a 52 percent increase compared to earnings per share of $0.27 for the year-ago quarter. Non-GAAP results and related reconciliation, as outlined in the attached consolidated statements, exclude amortization of other intangibles from acquisitions, amortization of deferred stock-based compensation, acquired in-process research and development, restructuring charges, and patent settlement charges as well as related income tax benefits. See “Use of Non-GAAP Financial Information” below.

“We continue to gain momentum in our consumer and enterprise business segments as customers look for solutions to help them create a balance between the security and availability of their information assets,” said John W. Thompson, Symantec chairman and CEO. “In addition, our international performance remains solid across all regions.”

Revenue Components
For the quarter, Symantec’s worldwide enterprise business, including enterprise security, enterprise administration, and services, represented 49 percent of total revenue and grew 29 percent year-over-year. Symantec’s enterprise security business represented 36 percent of total revenue and grew 27 percent; the enterprise administration business represented 11 percent of total revenue and grew 36 percent; and the services business represented 2 percent of total revenue and grew 22 percent. Symantec’s consumer business represented 51 percent of total revenue and grew 63 percent.

International revenues represented 52 percent of total revenue in the second quarter and grew 51 percent over the same quarter last year. The Americas, including the United States, Latin America, and Canada, grew 38 percent. The Europe, Middle East and Africa region recorded 52 percent growth and Japan/Asia Pacific grew 52 percent.

Business Outlook
Symantec is providing forward-looking guidance for the fiscal third quarter ending Dec. 31, 2004, as follows:

· Revenue is estimated between $645 million and $665 million.
· At the mid-point of revenue guidance, GAAP earnings per share is estimated to be $0.41.
· At the mid-point of revenue guidance, non-GAAP earnings per share is estimated to be $0.43.

Symantec is raising forward-looking guidance for fiscal year 2005 ending April 1, 2005, as follows:

· Revenue is estimated to be $2.495 billion, an increase of $90 million from prior guidance.
· By business segment we are estimating revenue growth for fiscal year 2005 as follows:

o Enterprise Security 24% growth
o Consumer Products 44% growth
o Enterprise Administration 25% growth
o Services 19% growth

· Deferred revenue is expected to be between $1.30 billion and $1.35 billion at the end of fiscal year 2005.
· GAAP earnings per share is estimated at $1.54, an increase of $0.06 from prior guidance.
· Non-GAAP earnings per share is estimated at $1.64, an increase of $0.07 from prior guidance.

Non-GAAP earnings per share guidance excludes the pre-tax amortization of other intangibles from acquisitions, amortization of deferred stock-based compensation, acquired in-process research and development and restructuring charges of approximately $14 million and $56 million for the quarter ending Dec. 31, 2004, and the fiscal year ending April 1, 2005, respectively.

Quarterly Highlights
· During the quarter the total number of transactions worldwide worth more than $100,000 each was 311, including 67 worth more than $300,000 each and 10 worth more than $1million each. Customers from the quarter included Park Nicollet Health Services, a nonprofit, integrated care system; StorageTek, a leading provider of enterprise information lifecycle management; and South Florida Water Management District, a regional, governmental agency that oversees water resources in the southern half of Florida.

· International customers from the quarter included TELCEL, the leading wireless operator in Mexico; PartnerRe Ltd., a leading international reinsurance group providing multi-line reinsurance to insurance companies on a worldwide basis; TelstraClear Limited, New Zealand’s second largest full-service telecommunications company; iiNet, a leading Internet Service Provider in Australia and New Zealand; Alenia Spazio, a leading Italian aerospace company; All Nippon Airways Co., Ltd, a leading airline company in Japan; and Mitsui Sumitomo Insurance Company, Limited, one of the leading non-life insurance companies in Japan.

Conference Call
Symantec has scheduled a conference call for 5 p.m. ET/2 p.m. PT today to discuss fiscal second quarter 2005 results, and to review guidance for the fiscal third quarter and fiscal year 2005. Interested parties may access the conference call on the Internet at http://www.symantec.com/invest/index.html. To listen to the live call, please go to the Web site at least 15 minutes early to register, download, and install any necessary audio software. A replay and script of our officers’ remarks will be available on the investor relations’ home page shortly after the call is completed.

About Symantec
Symantec is the global leader in information security providing a broad range of software, appliances and services designed to help individuals, small and mid-sized businesses, and large enterprises secure and manage their IT infrastructure. Symantec’s Norton brand of products is the worldwide leader in consumer security and problem-solving solutions. Headquartered in Cupertino, Calif., Symantec has operations in more than 35 countries. More information is available at http://www.symantec.com.