Symantec Corp yesterday reported first quarter results that breached estimates and raised guidance for its second quarter, prompting questions about the nature of the slowdown in the software industry.
The security vendor reported revenues of $577.1m for the quarter ending June 30, up 47.5% on the year. Operating income rose 136% to $187.7m, while net income was up 123.2% to $131.2m.
This resulted in earnings per share of $0.37, well ahead of the $0.34 Wall Street expected.
After busting through first quarter expectations, Symantec set second quarter guidance of $0.34 per share GAAP, up $0.02 on its previous guidance, on revenue of $580m, up $15m on its earlier target.
For the full year, it expects revenue of $2.4bn, up $70m on its previous forecast, with GAAP earnings per share of $1.48.
Chairman and CEO, John Thompson, said the results were based on solid enterprise revenues and better than expected consumer business.
Symantec’s report is likely to add to head scratching over the true state of the IT market, especially in enterprises. The last few weeks have seen earnings warnings and bleak reports from enterprise software vendors who say they saw deals getting pushed out from the end of June, into the third quarter.
So far, hardware vendors do not appear to have been afflicted by similar delays, and Symantec’s performance may suggest customers are simply being more targeted with their spending than enterprise software vendors expected.