Symantec reports first quarter profit of $161 million

By Steve Johnson

sjohnson@mercurynews.com

Posted: 07/28/2010 02:05:02 PM PDT
Updated: 07/28/2010 03:45:31 PM PDT

Computer security giant Symantec of Mountain View on Wednesday reported $1.43 billion in sales for its first quarter 2010 fiscal year, virtually unchanged from the same period a year ago and slightly less than the $1.46 billion analysts surveyed by Thomson Reuters had expected.

The company said profit for the quarter was $161 million, compared with $74 million a year ago. That represents about 20 cents a share, which was slightly better than the 19 cents a share analysts had predicted.

"This quarter, we saw lengthening of procurement cycles driven by continued cautiousness among IT buyers," said CEO Enrique Salem in a prepared statement. During a conference call with analysts, Salem added that delays in finalizing some big contracts with U.S. and European government agencies had hurt the company's first quarter revenue. But he said he remained optimistic about business going forward.

Symantec's shares fell 32 cents, or 2.13 percent, to $14.67 at the close of trading, before the company reported its earnings. During after-hours trading, the shares fell $1.18 more to $13.49.

In a note to its clients this week, investment bank Jefferies & Co. called the company "still the one to beat" in the computer security business, adding that Symantec's government sales — which Jefferies said accounts for about a tenth of its revenue — was a major plus.

Jefferies voiced concern about a multiyear contract extension Symantec