Cybersecurity industry pioneer Symantec Corp. (SYMC) reported its most recent fiscal 2017 third-quarter earnings results on Wednesday after market close. The Mountain View, Calif.-based tech firm has seen its shares dip as investors are discouraged by weaker-than-expected fourth-quarter guidance, despite posting a quarterly earnings beat.
Symantec’s fiscal 2017 third-quarter non-GAAP earnings of $0.32 per share exceeded expectations of $0.28 per share and reflected a 23% rise over the same period last year. Sales of $1.09 for the most recent period ended December beat the Street’s projected $1.08 billion in revenues and indicated a 20% rise year over year (YOY).
Cybersecurity Industry Leader May Move Ahead with Aggressive Acquisition Spree
Along with its quarterly financial results, the cloud-based cybersecurity specialist announced a new $1 billion debt offering. The firm has recently burned through cash as it financed two large acquisitions intended to bolster its position in the emerging enterprise and consumer security segments. As business and consumers adopt cloud computing technology and Internet of Things (IoT) devices, a new demand for next-gen security solutions has led old-guard players to quickly transform and swallow up smaller rivals for fast growth.
Symantec will possess an approximate $8 billion in debt after its completion of its LifeLock Inc. (LOCK) acquisition. The tech giant announced its buyout of the identity-theft and fraud-protection firm at the end of 2016 in a deal worth $2.3 billion. Earlier in June, Symantec acquired Blue Coat Systems for $4.65 billion in order to leverage its cloud-based solutions for enterprise clients.
The new offering indicates that Symantec may move ahead with its aggressive buyout spree, as competitors Check Point Software Technologies (CHKP) and Palo Alto Networks Inc. (PANW) are making strides into target markets with acquisitions of their own. The cybersecurity provider says its $1 billion offering of senior unsecured notes will be conditioned upon the completion of Symantec’s acquisition of LifeLock. (See also: Behind Symantec’s Recent Buyout Spree.)