Symantec is one of the leading companies that provide cyber security software for businesses and consumers. Symantec's applications handle such functions as virus protection, PC maintenance, intrusion detection, data loss prevention, spam control, content filtering, and remote server management. The company also provides managed services and training. Symantec is probably best known for its popular Norton consumer security software, which the company markets to PC users worldwide. About 60% of Symantec's sales are from the US, Canada, and Latin America. In 2016 Symantec bought Blue Coat Systems for $4.6 billion to build up its enterprise-level business.
Symantec reports revenue from its Enterprise and Consumer businesses.
Enterprise accounts for 54% of revenue. Its products are intended to secure corporate cyber activities. Products and services include Secure Socket Layer (SSL) Certificates, authentication, mail and web security, data center security, data loss prevention, information security services, endpoint security and management, encryption, and mobile security software.
The consumer security segment, mainly Norton security software, accounts for 46% of revenue. Norton-branded services provide multi-layer security and identity protection on major desktop and mobile operating systems for individuals and families as well as small businesses.
Symantec maintains what it calls the largest civilian database of threat indicators, which allows it to reduce false positives and provide faster and better protection for customers.
The company relies on an in-house staff to improve current products and develop new ones. It spent about $748 million on research and development in 2016 (ended April), compared to $812 million in 2015, and $722 million in 2014.
The company's corporate headquarters are in Mountain View, California. Symantec has operations in more than 50 countries throughout the Americas, Europe, the Middle East, Africa, Asia Pacific/Japan, and Latin America. About 41% of sales come from outside the Americas.
Sales and Marketing
Symantec sells its products through a direct sales force, as well as through distributors, resellers/e-commerce, computer manufacturers, and systems integrators. Its consumer products are sold to consumers through the company's e-commerce platform as well as through distributors, direct marketers, ISPs, wireless carriers, and retailers.
Note: Financial figures are restated due to discontinued operations.
Symantec's revenue for 2016 (ended April) was $3.7 billion, 45% lower than the $6.6 billion posted in 2014. The company sold its Veritas storage system business in early 2016. With the restatement of its figures, revenue dropped to $3.7 billion in 2015 from $3.9 billion in 2015. The remaining security businesses showed lower revenue in product segments and geographic segments in 2016 from 2015. Consumer security revenue suffered as the company switches users from a one-time, upfront payment to a subscription model. The Enterprise segment was hit by foreign currency exchange rates and decreases in sales of endpoint and mail cloud security products.
The company reported $2.5 billion in revenue in 2016, a 183% increase from 2015. The big jump came from money received in the sale of Veritas and tax benefits.
Cash flow from operations dropped to $796 million in 2016 from $1.3 billion in 2015.
Symantec sold the Veritas data storage business to the Carlyle Group for $6.6 billion in cash; it also received shares of Veritas.
In 2015, Symantec streamlined its consumer security line by funneling its products into a single Norton Security offering. Symantec also deepened its enterprise security offerings with a managed advanced threat protection service and a managed incident response service.
The company established a program called Secure One that aims to simplify, streamline, and accelerate sales through partnership arrangements with customers and distributors.
Mergers and Acquisitions
For Symantec 2016 shapes up to be a year of big acquisitions.
In August 2016 it completed the $4.6 billion purchase of Blue Coat Systems, which develops and sells cloud-based security software for corporations. Symantec also got a new CEO in the deal as Blue Coat's chief, Greg Clark, took the helm of Symantec.
Then in November 2016 Symantec agreed to pay $2.3 billion for Lifelock and its identity protection and fraud software. Symantec planned to roll Lifelock's products into its own security offerings to provide a more complete package. The deal was expected to close in early 2017.
Previously, in 2014, it bought NitroDesk, which makes a third-party email app, TouchDown, that allows businesses to set email security policies like authentication, encryption and copy/paste restrictions.