Symantec antivirus buy helps settle suit
The computer security provider says it bought a key security technology patent as part of a lawsuit settlement, and will take a charge to its reported first-quarter earnings.
Cupertino, Calif.-based Symantec, known for its Norton line of antivirus software, also received licenses to the remaining patents in Hilgraeve's portfolio. The purchase covers antivirus technologies.
The total cost of purchasing the patent and licensing additional patents from Monroe, Mich.-based Hilgraeve is $62.5 million.
Symantec said the one-time charge in its fiscal 2004 first quarter, which ended July 4, will result in an adjustment of $9.5 million, or 5 cents a share, to the previously reported net income. This will reduce net income for the quarter to $59 million, or 36 cents a share.
The company's second-quarter outlook remains unchanged at net earnings of 38 cents a share on sales in the range of $375 million to $395 million. Symantec expects to earn 41 cents a share before one-time items.
Including the revised first-quarter results, Symantec said it expects fiscal year 2004 sales of about $1.67 billion, as previously stated. It said it sees net income of $1.75 a share, down from $1.82. The company also expects earnings before one-time items to remain the same, at $1.96 a share.
Analysts forecast second-quarter earnings before one-time items of 42 cents a share, and for the fiscal 2004 of $1.96 a share, according to Reuters Research.
Symantec purchased the patent as part of a settlement in Hilgraeve v. Symantec.
"This is a patent that is fundamental to several security technology defenses, including antivirus technologies, and it is an essential part of providing comprehensive protection against the growing number of threats," Symantec CEO John Thompson said.
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