Editor’s note: Symantec divested, acquired and integrated to build positive momentum in 2Q17, concludes Technology Business Research after reviewing the company’s latest financial report.
HAMPTON, N.H. – Symantec’s revenue increased 32.9% year-to-year to $1.2 billion, buoyed by its recent flurry of acquisitions. TBR believes the acquisitions of Skycure and Fireglass will supplement revenue gains in the coming quarter.
The consolidation of go-to-market efforts and the integration of recently acquired assets reinforced positive performance for the vendor during CY2Q17. Symantec’s enterprise security revenues contributed 55% of revenue in CY2Q17 and increased 34.3% year-to-year, while its consumer digital safety revenue increased 31.3% year-to-year.
Recent investments resulted in an operating loss for the fourth consecutive quarter, with Symantec earning an operating margin of -3.7% in CY2Q17.
We anticipate the addition of acquired assets to Symantec, as well as refocused go-to-market strategies, will result in long-term improvements to profitability while supporting ongoing revenue gains and setting Symantec on the path to re-emerge as a stronger pure play security vendor by 2018.
- Symantec announced the divestiture of its website security assets to DigiCert; another step toward rapidly achieving growth goals
Symantec just announced the divestiture of its website security and related assets to DigiCert, a private equity firm. Symantec will maintain a minority stake in DigiCert following the finalization of this divestiture, which Symantec anticipates will close before its CY3Q17 earnings call in November.
Symantec asserted on its earnings call that this divestiture enables the vendor to more adequately focus its resources toward emerging security demands, such as the cloud.
TBR believes Symantec’s overall strategy is to streamline its portfolio to address the emerging needs of its evolving customers.
We believe a more agile and focused security portfolio will enable Symantec to achieve this goal, and was a key driver in the vendor’s decision to divest its website security assets, as it focuses its efforts on more emerging security capabilities.