LONDON, January 31, 2013 /PRNewswire/ --
Businesses across the world have been deploying IT-enabled solutions to boost their productivity. The increasing demand for IT-enabled business solutions, coupled with widespread adoption of Internet, has also boosted demand for security software and services. This trend has benefited companies such as Symantec Corporation (NASDAQ: SYMC) and Check Point Software Technologies Ltd. (NASDAQ: CHKP), two major players in the security software and services industry. StockCall technical review on these companies is now available for free upon registration at
Security Software Market Expected to Grow at a Robust Pace
The growth in security software market is being driven by increasing number of IT security attacks, widespread Internet adoption, discovery of new threats and the requirement for companies to comply with new legislations. However, like other areas of the information technology industry, uncertain global economic environment also has had an impact on the security software market.
Despite tightening IT budgets, the security software market has been resilient. And with the global economic outlook improving, technology spending is expected to bounce back this year. This should help security software and services providers such as Symantec and Check Point Software Technologies Ltd. Download our free report on Check Point by signing up today at
Symantec Delivers Record Results
Last week, Symantec Corp. [Free Technical Research on SYMC](1) posted record results for its third quarter ended December 28, 2013. The company's GAAP revenue for the quarter rose 4% to $1.79 billion. GAAP net income for the quarter was $212 million, down from $240 million reported for the same period in the previous year. On a non-GAAP basis, the company's net income for the quarter was $313 million, down from $314 million reported for the same period in the previous year.
Steve Bennett, President and CEO of Symantec, said that the company continued to deliver better-than-expected results. James Beer, Symantec's Executive Vice President and CFO, meanwhile, said that the better-than-expected top-line growth coupled with disciplined expense management drove non-GAAP operating margins of 25.6% even as the company is investing in certain areas to better serve its customer needs.
Last week, Symantec also announced a new strategy under which it will streamline and simplify operations in order to deliver improved performance for customers and partners. Steve Bennett noted that the company's strategy is straightforward; offer better products and services tailor made for customers, and make it easier for them to research, shop, buy, use and get the help and support they need.
Symantec will also implement an improved capital allocation strategy, which over time the company believes will return nearly 50% of free cash flow to shareholders through a combination of dividends and share buybacks.
Check Point Posts Better-Than-Expected Profit
Last week, Check Point Software also released its quarterly results. The Tel Aviv, Israel-based company reported better-than-expected profit in its fourth quarter, driven by rising sales of security appliances and cost-cutting measures.
Excluding one-time items, Check Point reported a profit of $0.91 per share, compared to $0.84 per share reported for the same period in the previous year. Revenue for the quarter climbed 3% to $369 million.
Looking ahead to 2013, Check Point Software expects revenue to be between $1.4 billion and $1.45 billion. Adjusted earnings for 2013 are expected to be between $3.30 per share and $3.50 per share.
- Symantec Corp. Technical Analysis [ http://www.StockCall.com/SymantecCorp013113.pdf ]
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