Symantec Replaces CEO; Sharpens Cloud Computing, Mobile Focus
July 25, 2012
Grazed from Economic Times. Author: Editorial Staff.
Symantec Corp unexpectedly replaced its chief executive, naming current Chairman and former Intuit Corp CEO Steve Bennett to run the world’s biggest maker of security software.
The company said Enrique Salem had stepped down on Tuesday, ending a three-year term during which he and the company had been criticized by investors for a string of financial disappointments.
Symantec, which had not previously said it was considering replacing Salem, also issued a quarterly outlook that was below Street projections as it announced the news on Wednesday morning…
"It was in the board’s judgment that it was in the best interests of Symantec to make a change in the CEO," Bennett said in a statement. "My view is that Symantec’s assets are strong and yet the company is underperforming against the opportunity."
It forecast fiscal second-quarter earnings per share would be in a range of 35 cents to 39 cents, below the Street view of 40 cents, according to Thomson Reuters I/B/E/S.
The company also projected that revenue would drop about 1 percent, coming in between $1.635 billion and $1.665 billion. That missed analyst’s expectations of $1.69 billion.
Symantec is one of the world’s biggest software makers. It sells Norton anti-virus software, other security programs for businesses as well as a large line of corporate storage and data management software.
The company, whose rivals include Intel Corp’s McAfee division and EMC Corp, also released results for its fiscal first quarter that ended June 29. It reported a profit, excluding items, of 43 cents, ahead of the 38 cent average forecast.
Revenue rose 1 percent from a year earlier to $1.67 billion, slightly ahead of the $1.65 billion forecast.