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Symantec forecasts lower than expected Q3 earnings amidst weakening PC market

Symantec forecasts lower-than-expected Q3 earnings amidst weakening PC market

By Reuters | Updated: 24 October 2013 11:17 IST

Symantec Corp, maker of Norton anti-virus software, reported lower-than-expected second-quarter revenue and forecast third-quarter results below expectations, hit by low demand for storage and security products and a weak PC market.

Symantec shares were down 12.5 percent in extended trading.

The company said it expects third-quarter adjusted earnings of 41 cents to 43 cents per share on revenue of $1.63 billion to $1.67 billion.

Analysts were looking for earnings of 51 cents per share, on revenue of $1.79 billion, according to Thomson Reuters I/B/E/S.

Symantec's consumer business sells products and services to individuals and home businesses globally through e-commerce platform, internet-based resellers and retailers.

The company also has partnerships with original equipment manufacturers to distribute internet security suites and online backup offerings.

"They've had growth challenges both on the security and on the storage front, and the consumer PC environment is not great, and they're heavily tied to that market," FBR Capital Markets analyst Dan Ives told Reuters.

Net income rose to $241 million, or 34 cents per share, in the second quarter, from $189 million, or 27 cents per share, a year earlier.

Excluding items, the company earned 50 cents per share.

Revenue fell 3.5 percent to $1.64 billion.

Analysts on average were looking for adjusted earnings of 44 cents per share on revenue of $1.69 billion.

Revenue from the company's information management business, which accounted for about 37 percent of total revenue in the second quarter, fell 5 percent.

The business helps companies manage information by providing backup and recovery, archiving and storage management.

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