Symantec (NASDAQ:SYMC) this morning said revenue for the fiscal third quarter ended December 29 would be $1.29 billion to $1.31 billion, short of previous guidance of $1.315 billion to $1.345 billion. The company said GAAP profits will be 10-11 cents a share, missing its previous forecast of 14-15 cents. On a non-GAAP basis, Symantec now sees profits for the quarter at 24-25 cents, below previous expectations of 29-30 cents.
For the fiscal fourth quarter ending in March, the company sees revenue of $1.24 billion to $1.27 billion and profits of 4-6 cents on a GAAP basis and 18-20 cents on a non-GAAP basis. The Street had been expecting revenue of $1.4 billion and non-GAAP profits of 32 cents.
The company blamed the fourth quarter shortfall on “weaker than expected performance in our Data Center Management business,” as well as “a greater proportion of enterprise maintenance contracts, which results in higher deferrals than we expected.” The company also said that it had higher than expected costs for its new ERP system.
Daniel Ives, an analyst with Friedman, Billings, Ramsey, wrote in a note this morning that the company saw “difficult conditions” in its North American data center management business in the quarter, and that the company’s European business is still recovering from a weak September quarter, particularly in Germany. Ives says the company “unfortunately continues to be a major work in progress.” He reduced his price target on the stock to $18 from $19, and maintained his Market Perform rating.
Symantec this morning is down $1.59, at $18.89.
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