Boston, MA 10/25/2013 (wallstreetpr) – Symantec Corporation (NASDAQ:SYMC) is on a restructuring mode and this was expected to affect the results. The company is reducing its workforce and reorganizing the sales team in order to reduce costs. This affected its revenues for the quarter negatively. Revenues at $1.64 billion were slightly below the guidance levels of $1.65 to $1.69 billion provided by the company. The reorganization of field sales force saw a decrease of 31% in license revenues and a 4% decrease in overall revenues. The decrease in sales and marketing expenses were offset by increase in severance expenses. Operating expenses were the same as compared to the last year same period. Operating margins increased to 15% from 13% for the last quarter. The operating margins were 17.5% in the same period last year. This indicates that the restructuring process has not eroded the bottom line. Lower tax expenses also lead to an increase in net income.
Revenues in all three business segments were affected due to the employee reorganization. User Productivity & Protection segment saw revenues decline to $719 million from $732 million a year ago. This segment contributes 44% to the company’s revenues. Revenues from the Information Security and Information Management segment decreased to $316 million from $324 million a year ago. The third segment, Information Management business, saw a drop in revenues from $632 million to $602 million for this quarter. Deferred revenues also declined $3.5 billion on account of a drop of 17% in order bookings.
The company expects that it will be able to reverse the trend only by 2015. Revenues for the balance of 2014 are expected to show negative trends. Analysts are worried that shrinking revenues will also start affecting earnings and feel that restructuring should not come at a cost to the revenues. Investors are also jittery about the company’s outlook for the year.
