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By | Chris Mellor 2nd November 2011 16:40

Symantec looks steady as biz spends on security

But services sector let it down in Q2

Services revenues prevented software giant Symantec recording excellent results across the board in its second fiscal 2012 quarter.

Symantec recorded revenues of $1.68bn in the quarter, ending 30 September, 14 per cent higher than a year ago. Net income was $182m, a satisfying 36 per cent higher than the year-ago quarter.

The half year numbers were revenues of $3.33bn, 14 per cent up on the $2.91bn of a year ago. Net income was $373m compared to $297m a year ago.

Prez and CEO Enrique Salem said: "For the fifth consecutive quarter, we met or exceeded all of our key metrics ... we continue to execute consistently." Well, not quite. Although there was good demand for Symantec's data management, protection and security products, with strong growth cited in enterprise backup and security, and consumer products doing well too, services let the side down:

  • The Security and Compliance segment represented 29 per cent of total revenue and increased 27 per cent year-over-year.
  • Symantec's Consumer segment represented 31 per cent of total revenue and increased 11 per cent year-over-year.
  • Storage and Server Management represented 36 per cent of total revenue and increased 9 per cent year-over-year.
  • Services represented 4 per cent of total revenue and decreased 16 per cent year-over-year.

Oh dear, who ever is running that services business will be glum, and is probably feeling glummer still after a dressing down from Enrique Salem.

The third quarter outlook is for $1.7bn to $1.715bn. Wouldn't HP be happy if it had this software business in its anorexic software portfolio? Now there's a thought. ®

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