Symantec Profits, Shares Fall Sharply

Computer security software maker Symantec Corp. has posted a disappointing 58 percent drop in profits from a year ago in its fiscal first-quarter report, blaming the situation on the softening of demand on the part of corporate customers. In response to the company’s report, shares slid more than 7 percent to $15.90 in late trading.
 
Symantec took in $1.43 billion in revenue this quarter, down from $1.65 billion, and posted earnings of 34 cents per share, excluding special items. Analyst expectations had the software company doing somewhat better, predicting $1.49 billion in revenue and 35 cents per share. Symantec CFO James Beer has blamed the economy for a lack of consumer spending, forcing consumers to retool the software they already have instead.
 
Beer also revealed that he does not expect Symantec’s bad luck to reverse any time soon but he did express his optimism that consumer confidence in purchasing new software may start to strengthen by the end of the calendar year. Symantec has predicted a slight increase in earnings and revenue in the current quarter.

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