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Symantec Corporation (SYMC)

  • Yesterday, 1:21 PM
    • What's old is new again: Ten years after merging with storage management software leader Veritas, Symantec (SYMC -0.8%) has decided its storage software ops will go under the Veritas name after being spun off from the company's security software/service ops.
    • Symantec adds the businesses that will (again) be known as Veritas had FY14 (ended March. '14) revenue of $2.5B (37% of Symantec's total revenue). FY15's FQ4 results are due on Feb. 5.
  • Tue, Jan. 13, 12:38 AM
    • Symantec (NASDAQ:SYMC) is hiring 65 engineers and data scientists, and is licensing IP, from Boeing's (NYSE:BA) Narus cybersecurity analytics software unit. Terms are undisclosed.
    • Narus' technology relies on algorithms and data fusion techniques to analyze large volumes of Web traffic, and filter suspect material. The company was the subject of a 2006 class-action suit alleging AT&T used its products to support the NSA's warrantless wiretap program.
    • The purchase comes as corporate interest in cybersecurity continues to surge in response to high-profile breaches - Pres. Obama will outline his cybersecurity proposals later this week - and as Symantec tries to better compete against a slew of smaller, faster-growing security tech firms offering some mixture of hardware, software, and services to protect against external threats.
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  • Mon, Jan. 5, 1:37 PM
    • Symantec's (SYMC -0.8%) FQ3 report will be posted after the close on Thursday, February 5. A CC will be held at 5PM ET (webcast on IR site).
    • Consensus is for revenue of $1.67B (-1.8% Y/Y), and EPS of $0.49. Symantec, which remains set to split its security and storage software ops by year's end, provided below-consensus FQ3 and FY15 revenue guidance in November. EPS guidance was a little healthier.
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  • Nov. 24, 2014, 3:43 PM
    • Twenty-two spinoffs have been completed in 2014, the most in a decade, and another 28 have been announced. Among the catalysts are activist investors, so Credit Suisse screened for companies with multiple business segments, slow growth, and stocks trading for lower multiples than peers, in other words, "good, quality companies that are struggling to grow."
    • The list is heavy on big media names like Time Warner (NYSE:TWX) and Twenty-First Century Fox (NASDAQ:FOXA), big tech like Oracle (NYSE:ORCL), Symantec (NASDAQ:SYMC), and IBM, and big industry like Lockheed Martin (NYSE:LMT), Ingersoll-Rand (NYSE:IR), and Raytheon (NYSE:RTN), but just two financial names - Travelers (NYSE:TRV) and Torchmark (NYSE:TMK).
  • Nov. 13, 2014, 5:21 PM
    • Symantec (NASDAQ:SYMC) COO Stephen Gillett is "no longer serving in such capacity as of November 13, 2014 as a result of the elimination of the Chief Operating Officer role from the Company's organizational structure." He's expected to remain with Symantec during a transitional period. (8-K)
    • The move comes ahead of Symantec's breakup into security and storage software firms, and fits with a broader corporate trend towards removing the COO position.
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  • Nov. 6, 2014, 3:42 PM
    • "As a result of restructuring, we expect headcount reductions of approximately 10%," Symantec (SYMC -0.5%) disclosed on its FQ2 CC (transcript). The company expects to record $100M-$120M in restructuring charges, about half of which will be recorded in FY15 (ends March '15).
    • Symantec also expects to record "separation costs" of $80M-$100M over the next five quarters related to its planned breakup.
    • The company already carried out a string of job cuts under the departed Steve Bennett. Opex was down 3% Y/Y in FQ2 to $894M.
    • Shares are off slightly post-earnings, after having gone into the report near a 52-week high of $25.35. Ahead of the breakup, Symantec's security software/services units saw revenue collectively fall 4% Y/Y in FQ2 to $996M, and its storage software/services unit saw revenue rise 3% to $621M.
    • FQ2 results, guidance, PR
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  • Nov. 5, 2014, 5:36 PM
    • Symantec (NASDAQ:SYMC) expects FQ3 revenue of $1.65B-$1.69B and EPS of $0.47-$0.50 vs. a consensus of $1.7B and $0.50.
    • FY15 guidance is for revenue of $6.6B-$$6.68B and EPS of $1.88-$1.93 vs. a consensus of $6.71B and $1.88.
    • SYMC -0.3% AH. FQ2 results, PR 
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  • Nov. 5, 2014, 4:03 PM
    • Symantec (NASDAQ:SYMC): FQ2 EPS of $0.48 beats by $0.05.
    • Revenue of $1.62B (-1.2% Y/Y) in-line.
    • Shares +0.14%.
    • Press Release
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  • Oct. 10, 2014, 3:31 PM
    • While calling Symantec's (NASDAQ:SYMC) decision to split its security and storage software ops into separate companies "an important step in fundamentally fixing the company," Morgan Stanley's Keith Weiss (Underweight) also thinks it increases near-term execution risk.
    • Weiss: "While Symantec needs to expend significant energy and focus on fixing the structure of the company, integrating existing technologies and increasing its pace of innovation, the markets it addresses are rapidly evolving."
    • Raymond James' Michael Turtis is more positive, upping shares to Outperform. While agreeing execution risks (along with strategic business risks) are high, he values Symantec at $25/share on a sum-of-the-parts basis if its units remain publicly traded, and $28/share if the storage unit becomes an acquisition target.
    • Credit Suisse's Phil Winslow (Outperform) believes at least two potential suitors could exist for Symantec's storage software ops, and suspects the business could fetch $9B (still 21% less than Veritas' enterprise value at the time of the merger).
    • Ratings agencies have put Symantec's debt on review for downgrade. They did the same for H-P following its split announcement.
    • Shares have dived towards $22 on a day the Nasdaq is down 1.9%.
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  • Oct. 9, 2014, 4:40 PM
    • After coming off a halt, Symantec (NASDAQ:SYMC) is moderately higher in response to news it's breaking up its security and storage software ops into separate companies.
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  • Oct. 9, 2014, 4:11 PM
    • Confirming a recent Bloomberg report, Symantec (NASDAQ:SYMC) announces it's splitting in two. One company, which will remain known as Symantec, will offer security software/services, and the other will offer storage management software/services.
    • Michael Brown and Thomas Seifert will respectively remain the CEO and CFO of the security business. John Gannon, formerly Quantum's COO and the head of H-P's commercial PC ops, will run the storage business.
    • The split will be structured as a tax-free spinoff to shareholders, and is expected to be finished by the end of 2015.
    • The security ops had FY14 (ended March '14) revenue of $4.2B, and the storage ops revenue of $2.5B. Security claims an even larger share of Symantec's current op. profit.
    • Symantec has used the occasion to reiterate its FQ2 guidance. Earnings are due on Nov. 5.
    • Shares are halted.
    | 1 Comment
  • Oct. 8, 2014, 10:35 AM
    • After opening up 3.1% in response to Bloomberg's report about a potential breakup, Symantec (SYMC +1.2%) has quickly pared its gains.
    • H-P can sympathize: The IT giant's shares jumped on Monday following the company's breakup announcement, but gave back virtually all of its gains on Tuesday.
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  • Oct. 8, 2014, 12:42 AM
    • Symantec (NASDAQ:SYMC) might be about to follow in eBay and H-P's footsteps: Bloomberg reports the company is in "advanced talks" to split its security and storage software ops, and that an announcement may happen within a few weeks.
    • A source adds the post-breakup companies could draw M&A interest, given firms such as EMC and H-P have shown interest in one half or the other.
    • Symantec's two security software units - one is focused on enterprise security, and the other on PC/mobile security - respectively grew 3% and 1% Y/Y in calendar Q2, while its storage software unit grew 1%. The security units accounted for 63% of revenue and 80% of segment op. profit.
    • Both the security and storage ops have been seeing tough competition from a mixture of IT giants (EMC, IBM, Intel/McAfee) and hungry upstarts (CommVault, Veeam, Proofpoint, FireEye), something that may have led Michael Brown (just named permanent CEO) to decide each business would be more agile/competitive as a separately-managed entity.
    • A split would effectively undo Symantec's 2005 merger with Veritas. Symantec currently trades below where it did prior to the Dec. 2004 merger announcement.
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  • Sep. 30, 2014, 1:15 PM
    • Traps, a new Palo Alto Networks (PANW -0.9%) endpoint security offering that leverages technology obtained from the Cyvera acquisition, blocks 23 sets of malware techniques on PCs and mobile devices. Like several other Palo Alto offerings, it's sold as a subscription service.
    • Palo Alto touts Traps' ability to automate endpoint protection, and (thanks to Cyvera's tech) to proactively scan for known malware techniques rather than wait for a threat alert to be triggered. The solution integrates with Palo Alto's WildFire threat-analysis service (has 3K+ customers).
    • Traps takes aim at Symantec (SYMC +0.4%), historically a major player in the endpoint security space, and also at FireEye (FEYE -2.6%), which has bought rapidly-growing endpoint security software/services firm Mandiant and has since used Mandiant to launch integrated hardware/software endpoint solutions. Intel's McAfee unit also competes in this market.
    • Palo Alto CEO Mark McLaughlin says Traps will join the list of Palo Alto products being sold by partner VMware. VMware is working to integrate Palo Alto's products with its NSX networking virtualization/SDN platform (expected to see major uptake over the next few years).
  • Sep. 25, 2014, 4:09 PM
    • Michael A. Brown, who has been serving as Symantec's (NASDAQ:SYMC) interim CEO since March (following the firing of Steve Bennett), has been named the company's permanent CEO.
    • Brown was once the CEO of storage hardware vendor Qunatum, and has also worked as a chairman and "CEO coach" for several tech companies prior to their acquisitions (of interest given M&A reports that arrived earlier this year). He'll share a new "strategic plan" within the next 30 days.
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  • Sep. 3, 2014, 5:38 PM
    • Home Depot has hired Symantec (NASDAQ:SYMC) and private FishNet Security to help investigate a suspected credit/debit card data breach.
    • Early reports suggest the breach took place in April, and could involve 2K+ Home Depot stores. Much like other security software firms, Symantec has been trying to grow its exposure to a burgeoning cybersecurity software/services market.
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Company Description
Symantec Corp provides security, backup and availability solutions. Its products and services protect people and information in any environment, from the smallest mobile device, to the enterprise data center, to cloud-based systems.