Symantec falls due to FQ4 guidance; Asia-Pac slump takes a toll

Though Symantec (SYMC -7%) beat FQ3 estimates, the company has guided for FQ4 revenue of $1.615B-$1.655B and EPS of $0.40-$0.42, below a consensus of $1.67B and $0.46.

Like plenty of other tech companies, Symantec's Asia-Pac sales (17% of revenue) have come under pressure: They fell 12% Y/Y in FQ3. NSA fallout could be a factor. But Americas and EMEA sales were only comparatively better, declining 4% and 1% respectively.

Symantec's User Productivity & Protection (PC/mobile security software, 42% of revenue) sales fell 4% Y/Y in FQ3 vs. 3% in FQ2. Information Security (enterprise security, 19% of revenue) sales fell 3% vs. 2%; Information Management (storage software) sales fell 6% vs. 5%. The numbers point to share loss against rivals such as McAfee (Intel), CommVault, and Veeam.

Symantec's deferred revenue balance fell 6% Y/Y to $3.59B. FQ3 EPS got a boost from $125M in buybacks. It also benefited from a 14% Y/Y drop in opex to $1.02B, the result of job cuts.

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