e425
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Filed by Symantec Corporation Pursuant to Rule 425
Under the Securities Act of 1933
And Deemed Filed Pursuant to Rule 14a-12
Under the Securities Exchange Act of 1934
Subject Company: VERITAS Software Corporation
Commission File No.: 000-26247

The following is a Form 8-K filed by Symantec on January 19, 2005.



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 19, 2005

SYMANTEC CORPORATION


(Exact name of the Registrant as specified in its charter)

Delaware


(State or other jurisdiction of incorporation)
     
000-17781   77-0181864
(Commission   (IRS Employer Identification No.)
File Number)    
     
20330 Stevens Creek Blvd., Cupertino, CA   95014
 
(Address of principal executive offices)   (Zip code)

(408) 517-8000


(The Registrant’s telephone number)


(Former name or former address, if changed since last report)

     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

þ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))



 


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ITEM 2.02: RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

     On January 19, 2005, Symantec Corporation (the “Registrant”) issued a press release announcing results for the fiscal quarter ended December 31, 2004. A copy of the press release is attached as Exhibit 99.1. The information in this report shall not be deemed to be “filed” for purposes of Section 18 of, or otherwise regarded as filed under, the Securities Exchange Act of 1934, as amended. Unless expressly incorporated into a filing of the Registrant under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, made after the date hereof, the information contained herein shall not be incorporated by reference into any filing of the Registrant, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

Additional Information and Where to Find It

     Symantec Corporation and VERITAS Software Corporation intend to file a registration statement on Form S-4 containing a joint proxy statement/prospectus in connection with the merger transaction involving Symantec and VERITAS. Investors and security holders are urged to read this filing when it becomes available because it will contain important information about the merger transaction. Investors and security holders may obtain free copies of these documents (when they are available) and other documents filed with the SEC at the SEC’s web site at www.sec.gov. In addition, investors and security holders may obtain free copies of the documents filed with the SEC by Symantec by contacting Symantec Investor Relations at 408-517-8239. Investors and security holders may obtain free copies of the documents filed with the SEC by VERITAS by contacting VERITAS Investor Relations at 650-527-4523.

     Symantec, VERITAS and their directors and executive officers may be deemed to be participants in the solicitation of proxies from the stockholders of Symantec and VERITAS in connection with the merger transaction. Information regarding the special interests of these directors and executive officers in the merger transaction will be included in the joint proxy statement/prospectus of Symantec and VERITAS described above. Additional information regarding the directors and executive officers of Symantec is also included in Symantec’s proxy statement for its 2004 Annual Meeting of Stockholders, which was filed with the SEC on July 30, 2004. Additional information regarding the directors and executive officers of VERITAS is also included in VERITAS’ proxy statement for its 2004 Annual Meeting of Stockholders, which was filed with the SEC on July 21, 2004. These documents are available free of charge at the SEC’s web site at www.sec.gov and from Investor Relations at Symantec and VERITAS as described above.

ITEM 9.01: FINANCIAL STATEMENTS AND EXHIBITS.

(c) Exhibits.

     
Exhibit No.   Description
99.1
  Press release issued by Symantec Corporation dated January 19, 2005.


 


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SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

     
       Date: January 19, 2005
  SYMANTEC CORPORATION
 
   
  By: /s/ Arthur F. Courville
   
  Arthur F. Courville
  Senior Vice President and General Counsel


 


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EXHIBIT INDEX

99.1   Press release issued by Symantec Corporation dated January 19, 2005.

 


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Exhibit 99.1

News Release

FOR IMMEDIATE RELEASE

     
MEDIA CONTACT:   INVESTOR CONTACT:
Melissa Martin
Symantec Corporation
408-517-8475
Melissa_martin@symantec.com
  Helyn Corcos
Symantec Corporation
408-517-8324
Hcorcos@symantec.com

SYMANTEC REPORTS RECORD REVENUE AND EARNINGS IN FISCAL THIRD QUARTER

Large Enterprise Transactions and International Performance Drive Results

CUPERTINO, Calif. – Jan. 19, 2005 – Symantec Corp. (Nasdaq:SYMC), the global leader in information security, today reported results for its fiscal third quarter ended Dec. 31, 2004. Symantec posted revenue for the quarter of $695 million, a 41 percent increase compared to $494 million for the same quarter last year, driven by strong performance in all business segments.

GAAP Results: Net income for the fiscal third quarter was $164 million, compared to $111 million for the same quarter last year. Earnings per share was $0.22, a 38 percent increase compared to earnings per share of $0.16 for the year-ago quarter.

Non-GAAP Results: Non-GAAP net income for the fiscal third quarter was $175 million, compared to $120 million for the same quarter last year. Non-GAAP earnings per share was $0.24, a 41 percent increase compared to earnings per share of $0.17 for the year-ago quarter. Non-GAAP results, as outlined in the attached consolidated statements and related reconciliation, exclude amortization of other intangibles from acquisitions, amortization of deferred stock-based compensation, acquired in-process research and development, restructuring charges, and patent settlement charges as well as related income tax benefits. See “Use of Non-GAAP Financial Information” below.

“All business segments had strong double digit growth as customers continue to turn to Symantec to manage the integrity of their information assets,” said John W. Thompson, Symantec chairman and CEO. “Solid online business, a record number of large enterprise transactions, both in size and number, and incredible international performance underpinned our success in the quarter.”

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Revenue Components

For the quarter, Symantec’s worldwide enterprise business, including enterprise security, enterprise administration, and services, represented 48 percent of total revenue and grew 33 percent year-over-year. Symantec’s enterprise security business represented 35 percent of total revenue and grew 29 percent; the enterprise administration business represented 11 percent of total revenue and grew 46 percent; and the services business represented 2 percent of total revenue and grew 37 percent. Symantec’s consumer business represented 52 percent of total revenue and grew 49 percent.

International revenues represented 54 percent of total revenue in the third quarter and grew 41 percent over the same quarter last year. The Americas, including the United States, Latin America, and Canada, represented 51 percent of total revenue and grew 39 percent. The Europe, Middle East and Africa region represented 35 percent of total revenue and grew 39 percent. Japan/Asia Pacific represented 14 percent of total revenue and grew 53 percent.

Business Outlook

Symantec is providing forward-looking guidance for the fiscal fourth quarter ending April 1, 2005, as follows:

  •   Revenue is estimated between $690 million and $710 million.

  •   At the mid-point of revenue guidance, GAAP earnings per share is estimated to be $0.23.

  •   At the mid-point of revenue guidance, non-GAAP earnings per share is estimated to be $0.24.

Symantec is raising forward-looking guidance for fiscal year 2005 ending April 1, 2005, as follows:

  •   Revenue is estimated to be $2.570 billion.

  •   Deferred revenue is expected to be approximately $1.35 billion based on the mid-point of fiscal fourth quarter revenue guidance.

  •   GAAP earnings per share is estimated at $0.80.

  •   Non-GAAP earnings per share is estimated at $0.86.

Non-GAAP earnings per share guidance excludes the pre-tax amortization of other intangibles from acquisitions, amortization of deferred stock-based compensation, acquired in-process research and development and restructuring charges of approximately $14 million and $64 million for the fiscal quarter and year ending April 1, 2005, respectively.

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Quarterly Highlights

  •   During the quarter the total number of transactions worldwide worth more than $100,000 each was 410, including 122 worth more than $300,000 and 25 worth more than $1 million each. Overall, 132 more large enterprise transactions were generated compared to the year-ago quarter.

  •   Symantec signed new or extended agreements with customers including CIGNA, an employee benefits company; EarthLink, one of the nation’s leading Internet service providers; SAS, the leader in business intelligence; AgriBank, FCB, a financial intermediary providing wholesale funds and services; APAC Customer Services, Inc., a leading provider of customer interaction solutions; HDR, an architectural, engineering, and consulting firm; Andrew Corporation, a global communications equipment and systems supplier; APL, a global container transportation company; Alcan, a global leader in aluminum and packaging, as well as aluminum recycling; Select Medical Corporation, a leading operator of specialty hospitals in the United States; Northeastern Regional Information Center (NERIC), a department of the New York Capital Regional Board of Cooperative Educational Services; Capital Health, Canada’s largest integrated academic health region, providing complete health services to 1.6 million residents across central and northern Alberta; and West Virginia University.

  •   International customers from the quarter included Wipro, a leading IT solutions and services provider in application development, system integration, product implementation and consulting services; SOLVAY S.A., an international chemical and pharmaceutical group with headquarters in Brussels; Dexia Groupe, the second largest financial group in Belgium; Belgacom, the leading Internet service provider and operator in Belgium; Ballast Nedam, one of the largest construction companies in The Netherlands; Swift, a financial industry-owned co-operative supplying secure, standardized messaging services and interface software; Telstra, Australia’s leading telecommunications and information services company; GLOBO.COM, the leading video and broadband provider in Brazil; and HypoVereinsbank AG, the second largest quoted bank in Germany.

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Conference Call

Symantec has scheduled a conference call for 5 p.m. ET/2 p.m. PT today to discuss fiscal third quarter 2005 results, and to review guidance for the fiscal fourth quarter and fiscal year 2005. Interested parties may access the conference call on the Internet at http://www.symantec.com/invest/index.html. To listen to the live call, please go to the Web site at least 15 minutes early to register, download, and install any necessary audio software. A replay and script of our officers’ remarks will be available on the investor relations’ home page shortly after the call is completed.

About Symantec

Symantec is the global leader in information security providing a broad range of software, appliances and services designed to help individuals, small and mid-sized businesses, and large enterprises secure and manage their IT infrastructure. Symantec’s Norton brand of products is the worldwide leader in consumer security and problem-solving solutions. Headquartered in Cupertino, Calif., Symantec has operations in more than 35 countries. More information is available at http://www.symantec.com.

###

NOTE TO EDITORS: If you would like additional information on Symantec Corporation and its products, please view the Symantec Press Center at http://www.symantec.com/PressCenter/ on Symantec’s Web site. All prices noted are in US dollars and are valid only in the United States.

Symantec and the Symantec logo are trademarks or registered trademarks, in the United States and certain other countries, of Symantec Corporation. Additional company and product names may be trademarks or registered trademarks of the individual companies and are respectfully acknowledged.

FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements, including forecasts of future revenue, deferred revenue and GAAP and non-GAAP earnings per share, expected industry patterns, and other financial and business results that involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results expressed or implied by this press release. Such risk factors include, among others: the sustainability of recent growth rates, particularly in consumer products; the anticipation of the growth of certain market segments, particularly enterprise security; the positioning of Symantec’s products in those segments; the competitive environment in the software industry; general market conditions; fluctuations in currency exchange rates; changes to operating systems and product strategy by vendors of operating systems; and whether Symantec can successfully develop new products and integrate acquired businesses, and the degree to which these products and businesses gain market acceptance. Actual results may differ materially from those contained in the forward-looking statements in this press release. Additional information concerning these and other risk factors is contained in the Risk Factors sections of Symantec’s recently filed Form 10-Q. Symantec assumes no obligation to update any forward-looking information contained in this press release.

USE OF NON-GAAP FINANCIAL INFORMATION: In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Symantec reports non-GAAP financial results. Non-GAAP net income and earnings per share exclude acquisition related charges, such as amortization of other intangibles, amortization of deferred stock-based compensation and in-process research and development, and certain other identified charges, such as restructuring and patent settlement, as well as the tax effect of these items. Symantec’s management believes these non-GAAP measures are useful to investors because they provide supplemental information that facilitates comparisons to prior periods. Management uses these non-GAAP measures to evaluate its financial results, develop budgets and manage expenditures. The method Symantec uses to produce non-GAAP results is not computed according to GAAP, is likely to differ from the methods used by other companies and should not be regarded as a replacement for corresponding GAAP measures. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to the comparable GAAP results, which is attached to this release and can also be found on the investor relations Web site at www.symantec.com/invest/center.html.

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Additional Information and Where to Find It

Symantec Corporation and VERITAS Software Corporation intend to file a registration statement on Form S-4 containing a joint proxy statement/prospectus in connection with the merger transaction involving Symantec and VERITAS Software. Investors and security holders are urged to read this filing when it becomes available because it will contain important information about the merger transaction. Investors and security holders may obtain free copies of these documents (when they are available) and other documents filed with the SEC at the SEC’s web site at www.sec.gov. In addition, investors and security holders may obtain free copies of the documents filed with the SEC by Symantec by contacting Symantec Investor Relations at 408-517-8239. Investors and security holders may obtain free copies of the documents filed with the SEC by VERITAS Software by contacting VERITAS Software Investor Relations at 650-527-4523.

Symantec, VERITAS Software and their directors and executive officers may be deemed to be participants in the solicitation of proxies from the stockholders of Symantec and VERITAS Software in connection with the merger transaction. Information regarding the special interests of these directors and executive officers in the merger transaction will be included in the joint proxy statement/prospectus of Symantec and VERITAS Software described above. Additional information regarding the directors and executive officers of Symantec is also included in Symantec’s proxy statement for its 2004 Annual Meeting of Stockholders, which was filed with the SEC on July 30, 2004. Additional information regarding the directors and executive officers of VERITAS Software is also included in VERITAS Software’s proxy statement for its 2004 Annual Meeting of Stockholders, which was filed with the SEC on July 21, 2004. These documents are available free of charge at the SEC’s web site at www.sec.gov and from Investor Relations at Symantec and VERITAS Software as described above.

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SYMANTEC CORPORATION

GAAP Consolidated Statements of Income

                                 
    Three Months Ended     Nine Months Ended  
    December 31,     December 31,  
(In thousands, except per share data; unaudited)   2004     2003     2004     2003  
Net revenues
  $ 695,224     $ 493,905     $ 1,870,171     $ 1,313,694  
Cost of revenues
    121,498       87,608       330,978       229,996  
 
                       
Gross profit
    573,726       406,297       1,539,193       1,083,698  
Operating expenses:
                               
Research and development
    85,289       61,885       241,989       182,086  
Sales and marketing
    226,577       167,014       616,395       464,556  
General and administrative
    29,910       21,712       81,773       69,258  
Amortization of other intangibles from acquisitions
    1,622       628       3,656       2,175  
Amortization of deferred stock-based compensation
    1,041             1,680        
Acquired in-process research and development
    1,218       1,600       3,480       2,600  
Restructuring, site closures and other
          (126 )     2,776       444  
Patent settlement
                      13,917  
 
                       
Total operating expenses
    345,657       252,713       951,749       735,036  
Operating income
    228,069       153,584       587,444       348,662  
Interest income
    13,340       9,184       33,516       28,088  
Interest expense
    (1,741 )     (5,291 )     (12,323 )     (15,873 )
Income, net of expense, from sale of technologies and product lines
          5,215             9,541  
Other income, net
    14       618       999       580  
 
                       
Income before income taxes
    239,682       163,310       609,636       370,998  
Provision for income taxes
    76,105       51,834       193,159       117,308  
 
                       
Net income
  $ 163,577     $ 111,476     $ 416,477     $ 253,690  
 
                       
Net income per share – diluted*
  $ 0.22     $ 0.16     $ 0.58     $ 0.37  
 
                       
Shares used to compute net income per share – diluted*
    742,446       724,358       738,053       713,534  
 
                       

* Share and per share amounts for the three and nine months ended December 31, 2003 retroactively reflect the two-for-one stock split effected as a stock dividend, which occurred on November 19, 2004. For the three and nine months ended December 31, 2004 and 2003, diluted net income per share is calculated using the if-converted method. Under this method, the numerator excludes the interest expense from the 3% convertible subordinated notes, net of income tax, of $1.2 million and $3.6 million for the three months ended December 31, 2004 and 2003, respectively, and $8.4 million and $10.8 million for the nine months ended December 31, 2004 and 2003, respectively, and the denominator includes shares issuable from the assumed conversion of the 3% convertible subordinated notes.

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SYMANTEC CORPORATION

Non-GAAP Consolidated Statements of Income

Non-GAAP amounts exclude all acquisition related amortization of intangibles and amortization of deferred stock-based compensation, acquired IPR&D, patent settlement and restructuring charges.

                                 
    Three Months Ended     Nine Months Ended  
    December 31,     December 31,  
(In thousands, except per share data; unaudited)   2004     2003     2004     2003  
Net revenues
  $ 695,224     $ 493,905     $ 1,870,171     $ 1,313,694  
Cost of revenues
    108,163       77,030       293,189       200,413  
 
                       
Gross profit
    587,061       416,875       1,576,982       1,113,281  
Operating expenses:
                               
Research and development
    85,289       61,885       241,989       182,086  
Sales and marketing
    226,577       167,014       616,395       464,556  
General and administrative
    29,910       21,712       81,773       69,258  
 
                       
Total operating expenses
    341,776       250,611       940,157       715,900  
Operating income
    245,285       166,264       636,825       397,381  
Interest income
    13,340       9,184       33,516       28,088  
Interest expense
    (1,741 )     (5,291 )     (12,323 )     (15,873 )
Income, net of expense, from sale of technologies and product lines
          5,215             9,541  
Other income, net
    14       618       999       580  
 
                       
Income before income taxes
    256,898       175,990       659,017       419,717  
Provision for income taxes
    82,207       56,317       210,885       134,309  
 
                       
Net income
  $ 174,691     $ 119,673     $ 448,132     $ 285,408  
 
                       
Net income per share – diluted*
  $ 0.24     $ 0.17     $ 0.62     $ 0.42  
 
                       
Shares used to compute net income per share – diluted*
    742,446       724,358       738,053       713,534  
 
                       

* Share and per share amounts for the three and nine months ended December 31, 2003 retroactively reflect the two-for-one stock split effected as a stock dividend, which occurred on November 19, 2004. For the three and nine months ended December 31, 2004 and 2003, diluted net income per share is calculated using the if-converted method. Under this method, the numerator excludes the interest expense from the 3% convertible subordinated notes, net of income tax, of $1.2 million and $3.6 million for the three months ended December 31, 2004 and 2003, respectively, and $8.4 million and $10.8 million for the nine months ended December 31, 2004 and 2003, respectively, and the denominator includes shares issuable from the assumed conversion of the 3% convertible subordinated notes.

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SYMANTEC CORPORATION

Reconciliation of Non-GAAP Gross Profit, Operating Expenses and Consolidated Statements of Income to the GAAP Gross Profit, Operating Expenses and Consolidated Statements of Income

                                 
    Three Months Ended     Nine Months Ended  
    December 31,     December 31,  
(In thousands, except per share data; unaudited)   2004     2003     2004     2003  
Non-GAAP gross profit
  $ 587,061     $ 416,875     $ 1,576,982     $ 1,113,281  
Cost of revenues:
                               
Amortization of acquired product rights
    (13,335 )     (10,578 )     (37,789 )     (29,583 )
 
                       
GAAP gross profit
  $ 573,726     $ 406,297     $ 1,539,193     $ 1,083,698  
 
                       
Non-GAAP operating expenses
  $ 341,776     $ 250,611     $ 940,157     $ 715,900  
Operating expenses:
                               
Amortization of other intangibles from acquisitions
    1,622       628       3,656       2,175  
Amortization of deferred stock-based compensation
    1,041             1,680        
Acquired in-process research and development
    1,218       1,600       3,480       2,600  
Restructuring, site closures and other
          (126 )     2,776       444  
Patent settlement
                      13,917  
 
                       
Total operating expenses
    3,881       2,102       11,592       19,136  
GAAP operating expenses
  $ 345,657     $ 252,713     $ 951,749     $ 735,036  
 
                       
Non-GAAP net income
  $ 174,691     $ 119,673     $ 448,132     $ 285,408  
Cost of revenues
    (13,335 )     (10,578 )     (37,789 )     (29,583 )
Operating expenses
    (3,881 )     (2,102 )     (11,592 )     (19,136 )
Income tax benefit
    6,102       4,483       17,726       17,001  
 
                       
GAAP net income
  $ 163,577     $ 111,476     $ 416,477     $ 253,690  
 
                       
Non-GAAP and GAAP net income per share — diluted
                               
Non-GAAP net income per share – diluted
  $ 0.24     $ 0.17     $ 0.62     $ 0.42  
 
                       
GAAP net income per share – diluted
  $ 0.22     $ 0.16     $ 0.58     $ 0.37  
 
                       
Shares used to compute net income per share – diluted
    742,446       724,358       738,053       713,534  
 
                       

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SYMANTEC CORPORATION

                 
Consolidated Balance Sheets
                 
    December 31,     March 31,  
(In thousands; unaudited)   2004     2004  
ASSETS
               
Current assets:
               
Cash and cash equivalents
  $ 2,944,002     $ 2,410,331  
Trade accounts receivable, net
    324,488       259,152  
Inventories
    21,884       15,134  
Current deferred income taxes
    141,105       98,438  
Other current assets
    65,801       59,079  
 
           
Total current assets
    3,497,280       2,842,134  
Property and equipment, net
    386,092       378,367  
Acquired product rights, net
    138,014       120,938  
Goodwill
    1,386,851       1,080,759  
Other long-term assets
    48,904       34,300  
 
           
 
  $ 5,457,141     $ 4,456,498  
 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
Current liabilities:
               
Accounts payable
  $ 82,874     $ 71,654  
Accrued compensation and benefits
    116,214       116,770  
Current deferred revenue
    1,181,350       878,716  
Other accrued expenses
    88,068       92,595  
Income taxes payable
    190,132       127,305  
 
           
Total current liabilities
    1,658,638       1,287,040  
Convertible subordinated notes
          599,987  
Long-term deferred revenue
    112,623       92,481  
Long-term deferred tax liabilities
    53,014       44,750  
Other long-term obligations
    5,153       6,032  
Stockholders’ equity:
               
Common stock
    7,078       3,119  
Capital in excess of par value
    2,372,144       1,573,466  
Accumulated other comprehensive income
    256,247       125,484  
Deferred stock-based compensation
    (10,878 )      
Retained earnings
    1,003,122       724,139  
 
           
Total stockholders’ equity
    3,627,713       2,426,208  
 
           
 
  $ 5,457,141     $ 4,456,498  
 
           

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