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Symantec’s Consumer Security Failed to Post Revenue Growth

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Symantec’s Consumer Security segment fell in fiscal 1Q16

Previously in this series, we discussed that Symantec’s (SYMC) Consumer Security Software segment posted $430 million in revenue. It fell 19% on a YoY (year-over-year) basis in fiscal 1Q16.

Symantec’s Consumer Security segment has failed to garner any growth since fiscal 2012. This has been a source of concern as far as its growth prospects are concerned. In fiscal 1Q16, this segment contributed ~29% towards the overall revenue.

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In its recent earnings release regarding Norton’s security offerings for Google’s (GOOG) Android, Apple’s (AAPL) Mac, and Microsoft (MSFT) Windows devices, Symantec stated that “we’ve seen new vulnerabilities that expose Mac and Android devices to attack. Norton’s core security service offering includes protection for mobile and Mac devices as well as Windows, providing not only device protection but also capabilities to detect phishing and scams.”

Symantec’s Norton dominance in the security space is slipping away

As the above pie chart shows, Avast rules the antivirus space with a 21.40% market share. It’s followed by Microsoft and AVG. They have a 19.40% and 8.60% share, respectively. AVG and Symantec are other players among the top five players in this space. As a result, Symantec’s antivirus is way behind in the antivirus space.

Symantec’s Consumer Security segment’s revenue growth is under pressure. This is mainly due to the streamlining of its Norton product line as well as the exit of some OEM (original equipment manufacturer) contracts that weren’t profitable. Also, Symantec hasn’t provided any detailed plans for its Norton suite. This makes it hard to have a bright outlook on the consumer security front.

You can consider investing in the Technology Select Sector SPDR Fund (XLK) to gain exposure to Symantec. XLK invests about 0.41% of its holdings in Symantec.

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