Symantec’s license and subscription reported a fall in fiscal 1Q16
Previously in this series, we discussed Symantec’s (SYMC) financial performance in fiscal 1Q16 and the sale of its Information Management and Data Dtorage business, Veritas, to The Carlyle Group. With the Veritas sale, Symantec is now left with Consumer Security and Enterprise Security operating segments.
Lately, apart from Symantec, technology players like Hewlett-Packard (HPQ) and eBay (EBAY) were forced to give in to investors’ rising pressure and announce their splits. In August 2015, through Re/code, it became known that EMC (EMC) is also considering its buyout by its own subsidiary VMware (VMW) due to more pressure from Elliott Management—a hedge fund—and an activist investor.
Symantec’s Content, Subscription, and Maintenance and License segments reported $1.35 billion and $147 million revenue in fiscal 1Q16, respectively. Revenue from both the License segment as well as Content, Subscription, and Maintenance segment fell by 9% and 14%, respectively.
Symantec’s operating segment’s revenue continues to fall
Symantec’s operating segments before the Veritas sale included Consumer Security, Enterprise Security, and Information Management or Veritas, as the above pie-chart shows. With the Veritas sale, Symantec is now left with the Consumer Security and Enterprise Security operating segments. Later in this series, we’ll discuss the factors that are responsible for Symantec’s operating segments’ performance in fiscal 1Q16. The above chart shows the contribution of Symantec’s operating segments towards the overall revenue in fiscal 1Q16.
In 1Q16, Symantec’s Consumer Security, Enterprise Security, and Information Management segments posted $430 million, $482 million, and $587 million in revenue, respectively. They reported a 19%, 13%, and 10% fall on a YoY (year-over-year) basis, respectively. All of the operating segments posted a double-digit fall in revenue. The appreciation of the US dollar (UUP) played a substantial role. In the previous quarter, Symantec’s Consumer Security and Enterprise Security revenue fell.