Symantec Sees Linux as an Opportunity for Growth
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Symantec (NASDAQ:SYMC) reported fourth quarter and full year fiscal 2012 earnings late Wednesday. While the fourth quarter results showed some revenue weakness, the overall results for the year shows positive trends.
For the fourth quarter, Symantec reported revenue of $1.68 billion, which is flat on a year-over-year (YoY) basis. For the full year, revenue was reported at $6.73 billion, which is a 9 percent YoY gain. Net Income for the fourth quarter was reported at $559 million, up from $168 million in the fourth quarter of 2011.
One area of weakness for Symantec was its Storage and Server Management segment that decreased by five percent on a YoY basis. That decrease was attributed to a 'pause' in sales before the launch of Symantec's new Backup Exec product.
Salem also noted that in Symantec's Storage Management area, they have been doing a lot of work on the HP-UX platform. That work comes by way of a reseller OEM agreement with HP that has seen a slowdown in billings. Future growth for Symantec's Storage Management business is expected to come from increased use of virtualization as well as a shift toward Red Hat Enterprise Linux.
"So you're seeing a headwind in that business on some of the more traditional platforms and some opportunities around the new platforms of virtualization and Linux," Symantec CEO, Enrique Salem said.