Some people are benefiting from the proliferation of cyber-crime other than the criminals and that’s security software firms with Symantec’s fiscal first quarter earnings beating estimates with a growth in profits.
The company reported a net income of $236 million, up from $157 million last year, thanks in part to it lowering its operating costs over the last year. Meanwhile revenue grew two percent to $1.74 billion.
“Separation of the sales force into new business and renewals teams has led to improved performance, especially in North America. In particular, our federal and renewals teams both delivered one of their best quarters ever,” said CEO Michael Brown.
“Our backup appliances, Trust Services and data loss prevention businesses also generated robust revenue growth,” he added.
“In the last two quarters, we’ve introduced nearly two dozen new or improved products and we’re on track to release almost two dozen more by fiscal year end.”
Symantec has for some time been moving away from one-time fees to a subscription-based model.
Wall Street reacted positively to Symantec’s report, which had initially been expecting 42 cents per share but ended up with 45 cents per share (non-GAAP).
Symantec went on to say that it has a number of products and initiatives planned for the next year that will take advantage of the growing demand for security software.
“We have eight revenue and efficiency initiatives in place that we expect will help us continue to build momentum into next year,” said EVP and CFO Thomas Seifert. “We’ve identified three efficiency initiatives that we believe will ramp during the second half of the fiscal year: optimizing our Norton business, streamlining product support, and reducing our global footprint.”