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Symantec profit drops

by on15 May 2015


Consumers don't want it

Antivirus and security software maker Symantec saw its quarterly profit and revenue missed what the cocaine nose jobs of Wall Street expected.

The company is blaming a strong dollar and lower demand for its consumer security products.

Symantec makes Norton antivirus software, so a lack of consumer interest goes without saying. It forecast weaker-than-expected first-quarter profit and revenue, sending its shares down three percent in extended trading.

The company, whose security products come bundled with PCs, said it expects an adjusted profit of 41-44 cents per share in the current quarter and revenue of $1.50 billion-$1.54 billion.

Analysts on an average were expecting a revenue of $1.62 billion.

Slowing PC sales have hurt the company's security business, while sluggish demand for storage and data management software has diminished the value of its cash-cow Veritas business.

Symantec said last month it was moving ahead with its plans to split into two publicly traded companies by next January, a move that it views as more tax-efficient than a sale of one of its units.

The company, which gets half its revenue from its international business, said revenue from outside the United States fell 10.5 percent in the fourth quarter ended April 3.

The dollar rose about 9 percent against a basket of major currencies in the first three months of 2015.

Revenue in Symantec's consumer security business fell 19 percent to $408 million.

Revenue fell to $1.52 billion from $1.63 billion, below the average estimate of $1.56 billion.

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