Symantec Slashes Quarterly Guidance; CEO to Step Down

Symantec Corp. shares dropped Thursday as the company slashed its guidance and said Chief Executive Michael Brown would step down once it finds a successor.

For the fourth quarter, the company said revenue is expected to come in at $783 million, down from prior guidance of $885 million to $915 million. It also expects adjusted earnings of 22 cents, below its prior range of 24 cents to 27 cents.

Symantec said the shortfall is because of "a shift in enterprise security customer buying preferences" that led to less license revenue during the quarter. It did note that more revenue had been deferred to future periods.

Shares dropped 14% to $15.60 in premarket trading.

The company also said it would search for a new chief executive to replace Mr. Brown. Meanwhile, Symantec said it had named Ajei Gopal as interim president and operating chief, part of an "office of the president" that includes other executives who will help fill the management void until the new CEO is hired.

The guidance cut and CEO departure come after the company has made a push to morph itself into a cybersecurity-only firm. In August, the company struck a deal to sell its Veritas data-storage business to Carlyle Group LP, though the private-equity firm in January said it would pay less than originally agreed for the business, citing "uncertainties" that surfaced following the deal's announcement.

Write to Nathan Becker at [e-mail]

(END) Dow Jones Newswires

April 28, 2016 08:45 ET (12:45 GMT)

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