Cash, debt, and cash flow
Previously, we discussed Symantec’s (SYMC) operating segments’ revenue and margin contribution in fiscal 2Q18. In this part, we’ll look at Symantec’s balance sheet strength.
In fiscal 2Q18, which ended September 30, 2017, Symantec had ~$2.0 billion in cash and cash equivalents. On September 30, 2017, Symantec had $6.2 billion in long-term debt, which includes approximately $1.8 billion in convertible notes. Close to 98% of Symantec’s debt is long term. Its OCF (operating cash flow) and FCF (free cash flow) stood at $177 million and $152 million, respectively.
Dividend announcement in fiscal 2Q18
Symantec continued to adhere to its policy of returning value to its shareholders through dividends in fiscal 2Q18, declaring a cash dividend of $0.075 per share. Although the company has decent cash reserves, its debt is rising.
Symantec closed the sale of its website security business to DigiCert and received approximately $960 million in cash in fiscal 2Q18. It also received a 27% common stock ownership interest in DigiCert, and in early 2017, Symantec raised $1.1 billion in debt to finance LifeLock’s acquisition. Symantec could use these cash proceeds to repay debt.