Symantec Benefits From New Upgrades In Q3: LifeLock To Be A Life Saver For Consumer Security
The world’s largest software security company, Symantec (NYSE:SYMC) released its Q3’17 earnings on Feb 1st. (Fiscal years end with March.) The company exceeded both its revenue and earnings guidance. The top line was led by synergies from Blue Coat and the upgrades of Symantec Endpoint Protection. Due to this, enterprise security again turned out to be the front runner, whereas consumer security business continued to decline, though at a lower pace. The bottom line was supported by strong operating margins backed up by cost savings.
Going forward, Symantec has increased its guidance for Q4 and fiscal year 2017. Apart from this, Symantec is likely to benefit from the further upgrades in its endpoint protection suites along with better integration with Blue Coat. Also, from Q3 onwards, LifeLock is expected to put a temporary end to the sluggish consumer security business.
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See our complete analysis for Symantec
Benefits Of New Technology And Upgrades To Be Enhanced Going Forward
As per the management, launch of ‘SEP (Symantec Endpoint) 14’ received positive reviews and attracted new customers to Symantec. The company is planning to roll out further upgrades and enhancements in its endpoint protection later this year. We believe these benefits will increase going forward as more customers try the new technology and upgrades from Symantec. Apart from this, the company is expected to speed up its innovations in the cloud as its integration with Blue Coat strengthens over time. Already Symantec was able to close various CASB (Cloud Access Security brokers) deals across the world, which can be considered as benefits from the Blue Coat acquisition. Symantec maintained its place in the leadership quadrant in Gartner’s endpoint protection report.
LifeLock – A Hope For Consumer Security
LifeLock is an identity theft protection company whose acquisition will be completed by Symantec on February 9th. LifeLock’s technology will be added to Symantec’s endpoint malware protection products, which will create significant cross selling opportunities for both the companies in Q4 and FY’18. Also, the customers of both companies wont have to pay separately for malware and identity protection, which might attract new customers to Symantec.
Just like Blue Coat’s revenues have benefited the enterprise segment, revenues from LifeLock will be a boon for Symantec’s consumer business, which has declined over the past few years due to slowdown in consumer security market along with an increased competition from the new entrants. According to Symantec, LifeLock will add around $100 million to the consumer security’s Q4 revenues which will increase in the subsequent quarters after the complete integration.
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