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October 7, 1998

SYMANTEC SAYS Q2 WILL DISAPPOINT

By CBR Staff Writer

Symantec Corp today has issued a warning that it expects revenues for the second quarter ended October 2 to be roughly 10% below analysts’ estimates. The utilities software house said preliminary earnings per share the quarter are expected to be $0.18, before one-time charges – well below the $0.37 that analysts surveyed by First Call were looking for. The loss of a major account was one of the reasons cited for the downturn. The news comes after the company confirmed last week it would be cutting 100 staff, or 5% of its overall workforce, as a result of a slowdown in sales over the summer. The company admitted that after two months of ebbing sales it needed to get expenses in line with revenues. Sales for the second quarter will also be impacted by as much as $5m due to the temporary injunction issued against the company in its infringement suit with rival CyberMedia Inc. In early September a court ordered Symantec to stop shipping the Norton Uninstall Deluxe product and all suites and bundles containing the underlying code. It was also required to recall all of the disputed products from retailers and cease all marketing activities associated with them. Symantec shares responded to the news by falling $1.6875, or nearly 16%, before rallying to close unchanged at $10.5625. Full results for the second quarter are scheduled for release on October 15.

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