Report Outline:

Symantec has announced results for Q3 FY 2016, the period ended January 1, 2015, marking the first report since the split of Symantec and the Veritas information management business:

• Revenues were $909m, down 6.3% y/y, down 2% in CC
• Operating income was $254m, an operating margin of 27.9%, down 608 bps y/y.

Q3 FY 2016 revenue (and revenue growth) by service was:

• Content, subscription and maintenance $869m (+0.8%, -2% in CC)
• License $41m (+7.9%, +5% in CC)

Q3 FY 2016 revenue (and revenue growth) by segment was:

• Consumer Security $414m (-10.2%, -6% in CC)
• Enterprise Security $495m (-2.8%, +1% in CC).

Q3 FY 2016 operating income (and margin) by segment was:

• Consumer Security $230m (55.2%, +241bps)
• Enterprise Security $24m (4.8%, -1,185bps).

Q3 FY 2016 revenue (and revenue growth) by region was:

• International $425m (-10.3%, -2% in CC)
• U.S. $484m (-2.4%, -2% in CC)
• Americas $539m (-2.2%, -2% in CC)
• EMEA $224m (-13.5%, -2% in CC)
• Asia Pacific & Japan $146m (-8.8%, -2% in CC).

Symantec has provided guidance for Q4 FY 2016 of revenues between $885m and $915m equivalent to revenue growth between -1.6% and +1.8% of which:

• Consumer Security revenues between $405m and $415m, equivalent growth of -0.7% and +1.7%
• Enterprise Security revenues between $480m and $500m, equivalent growth of -2.2% and +1.8%.

On the same date as the results Symantec announced that it will aim to achieve cost saving of ~$400m by end fiscal 2018 and will fund a capital return of $5.5bn funded through the Vertias sale, the $500m from investment from Silver Lake that will be used for:

• $500m in sahre repurchasing completed January 2016
• A dividend of $4.0 per share, a total of $2.7bn
• $2.3bn in future share repurchases.