Symantec Earnings Call Insights: Product Roadmap and Renewals
Symantec Corp (NASDAQ:SYMC) recently reported its first quarter earnings and discussed the following topics in its earnings conference call.
Brad Zelnick – Macquarie: Great job, especially considering all that’s going, not only at Symantec, but in the environment more generally. Steve on the product side, can you talk about the progress you’re making on the new solution areas and when we might hear additional details on what the initial offerings look like? Is it fair to say that the changing product roadmap might have impacted customer decisions and caused some hesitation, the results might have otherwise been even better or am I stretching here?
Steve Bennett – Chairman, President and CEO: You’re stretching, I think that we just shared with our sales force, and obviously, we’ve been sharing with some of our customers these roadmaps when we had our worldwide sales and marketing conference a couple of weeks ago and the feedback from both customers, partners and salespeople has been very, very positive. So, we are trying to figure out what the right path is. I know we’ll talk about this at Investor Day next May, and my guess is there that what you’ll see some of this between now and then and we don’t really have a good path on this. But of the 10 new offerings that we announced we still have 10, one didn’t make it and we came up with the idea of one new one. So, your feedback – all of your feedback to Helyn and the best way for us to share some of this data would be helpful. But I think that it did not affect revenue in the current period, but we are excited about how it will help us meet the 5% CAGR that we talked about longer-term.
Brad Zelnick – Macquarie: Steve and James, you listed a good half a dozen vectors of change to the sales model heading into 2Q. It seems unprecedented the degree of change, but is there any reference point in the past that gives you confidence that your guidance efficiently accounts for the risks associated with all these changes that you are making?
Steve Bennett – Chairman, President and CEO: I think it is important to recognize how much of our revenue in the quarter is (raisable). So I particularly drew reference in the June quarter to that 89% number. For the September quarter, the starting balance sheet will drive 77% of our revenue and then we’ll add to that based on the (raisable) activity from in-period sales. So, I think that should give you some comfort as to the revenue guide that we put out there.
Brad Zelnick – Macquarie: Very quick follow up. So, based on that comment would it be fair to say that as we model deferreds into September that maybe we should exercise a little bit more conservatism than typical seasonality?
Steve Bennett – Chairman, President and CEO: I think that’s probably appropriate. That will certainly be consistent with the approach that we’ve taken to assessing the guidance range.
John Difucci – JPMorgan: Steve, it sounds like you started separating maintenance renewals from the sale of new business this quarter or at least got the ball rolling. But I think either you or James said that you’ll have the renewals came fully up and running by the end of the fiscal year. I guess, can you give us a little more detail on the status of that? Are you rolling that out regionally and if you are – where are you, I guess, you are in – I would assume if you are going to do that, you might do it here in the U.S. first. But can you give us a little more detail on that, that would be helpful?
Steve Bennett – Chairman, President and CEO: I think, John, what we talked about was we are rolling it out in a thoughtful way as we talked about going as fast as we feel comfortable with given all the moving parts. So, we’re not going to release kind of the details by country or geo and I think it will be different in Asia Pacific based on the different languages that it might be in the U.S or Europe. So, I think, we launched in the second quarter in some geographies and some will come in later in the year and we expect to launch all of them between now and the end of the fiscal year. I think that’s kind of what we wanted to talk about at this point.
John Difucci – JPMorgan: If I could, James, you maintained constant currency guidance for the year for the top line 0% to 2% growth. Our math would indicate the reported numbers given where the currencies are today relative to year ago (wouldn’t) indicate something and then on the order of minus 2% to 0% growth, because I think the reason I am asking is because I think there is some confusion out there with investors, is that accurate? Would that be the reported if it’s 0% to 2% constant currency?
James Beer – EVP and CFO: Yeah, that would be consistent with the sort of headwind that we are looking at in that range, yeah.
A Closer Look: Symantec Earnings Cheat Sheet>>