Symantec Corporation (SYMC) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $144 million, or $ 0.23 a share in the quarter, against a net profit of $156 million, or $0.23 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $192 million, or $0.30 a share compared with $196 million or $0.29 a share, a year ago.
Revenue during the quarter grew 8.06 percent to $979 million from $906 million in the previous year period. Gross margin for the quarter contracted 379 basis points over the previous year period to 78.55 percent. Operating margin for the quarter stood at negative 1.23 percent as compared to a positive 11.04 percent for the previous year period.
Operating loss for the quarter was $12 million, compared with an operating income of $100 million in the previous year period.
However, the adjusted operating income for the quarter stood at $296 million compared to $283 million in the prior year period. At the same time, adjusted operating margin contracted 100 basis points in the quarter to 30.23 percent from 31.24 percent in the last year period.
Greg Clark, Symantec CEO, said, "We have made remarkable progress in the short time that Blue Coat and Symantec have been combined. We completed the first phase of delivering our Integrated Cyber Defense Platform, our sales force is now enabled to sell the Company’s combined portfolio, and our cost savings and synergy initiatives are tracking ahead of schedule."
For financial year 2017, Symantec Corp expects revenue to be in the range of $3,925 million to $4,005 million. Symantec Corp expects adjusted revenue to be in the range of $4,040 million to $4,120 million. The company projects diluted loss per share to be in the range of $0.07 to $0.01 and projects diluted earnings per share to be in the range of $1.12 to $1.18 on adjusted basis.
For the third-quarter, Symantec Corp expects revenue to be in the range of $1,023 million to $1,043 million. The Company expects adjusted revenue to be in the range of $1,070 million to $1,090 million. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.27 to $0.29.
Operating cash flow turns negative
Symantec Corp has spent $717 million cash to meet operating activities during the first half as against cash inflow of $434 million in the last year period.
The company has spent $4,534 million cash to meet investing activities during the first half as against cash inflow of $615 million in the last year period
Cash flow from financing activities was $4,892 million for the first six months as against cash outgo of $814 million in the last year period.
Cash and cash equivalents stood at $5,610 million as on Sep. 30, 2016, up 81.14 percent or $2,513 million from $3,097 million on Oct. 02, 2015.
Working capital increases sharply
Symantec Corp has recorded an increase in the working capital over the last year. It stood at $2,960 million as at Sep. 30, 2016, up 216.58 percent or $2,025 million from $935 million on Oct. 02, 2015. Current ratio was at 1.84 as on Sep. 30, 2016, up from 1.25 on Oct. 02, 2015.
Days sales outstanding went down to 49 days for the quarter compared with 67 days for the same period last year.
At the same time, days payable outstanding went down to 70 days for the quarter from 145 for the same period last year.
Debt increases substantially
Symantec Corp has witnessed an increase in total debt over the last one year. It stood at $7,176 million as on Sep. 30, 2016, up 312.41 percent or $5,436 million from $1,740 million on Oct. 02, 2015. Short-term debt stood at $600 million as on Sep. 30, 2016. Total debt was 42.55 percent of total assets as on Sep. 30, 2016, compared with 13.96 percent on Oct. 02, 2015. Debt to equity ratio was at 1.86 as on Sep. 30, 2016, up from 0.30 as on Oct. 02, 2015.
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