Symantec revenue misses Street on strong dollar

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Antivirus and software maker Symantec Corp’s quarterly profit and revenue missed Wall Street estimates, hurt by a strong dollar and lower demand for its consumer security products.

Symantec, best known for its Norton antivirus software, also forecast weaker-than-expected first-quarter profit and revenue, sending its down 3 percent in extended trading.

The company, whose security products come bundled with PCs, said it expects an adjusted profit 41-44 cents per share in the current quarter and revenue of $1.50 -$1.54 billion.

Analysts an average were expecting a profit of 45 cents per share on revenue of $1.62 billion, according to Thomson Reuters I/B/E/S.

Slowing PC sales have hurt the company’s security business, while sluggish demand for storage and data management software has diminished the value of its cash-cow Veritas business.

Worldwide PC shipments fell 6.7 percent to 68.5 million units in the first three months of the year, and are expected drop 4.9 percent in 2015, research firm IDC said in April.

Symantec said last month it was moving ahead with its plans to split into two publicly traded companies by next January, a move that it views as more tax-efficient than a sale of one of its units.

The company, which gets half its revenue from its international business, said revenue from outside the United States fell 10.5 percent in the fourth quarter ended April 3.[pro_ad_display_adzone id=”70560″]

The dollar rose about 9 percent against a basket of major currencies in the first three months of 2015.

Revenue in Symantec’s consumer security business fell 19 percent to $408 million.

Excluding items, the company earned 43 cents per share, analysts’ average estimate of 44 cents.

Revenue fell to $1.52 billion from $1.63 billion, below the average estimate of $1.56 billion.

(Reporting by Kshitiz Goliya and Abhirup Roy in Bengaluru; Editing by Joyjeet Das and Sayantani Ghosh)