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Symantec Corporation Message Board

  • long_term_tech_investor long_term_tech_investor Jan 17, 2013 11:42 AM Flag

    Thoughts on the Call Next Week

    From looking at recent software sector and technology earnings reports it would imply the company earnings for CYQ4 should be somewhere between decent and solid. Guidance could be soft on the revenue side, but that is probably anticipated already due to the macro conditions and the disruption of changes occurring. Then there's the forward strategy and allocation plan aspects. Speculation of a dividend program has been raised. And past history has leaned heavily toward stock buy-backs so it would seem possible that might come into play, along with an outline for a targeted acquisition strategy to fill critical gaps and increase growth. We are already seeing news of divestitures so I would expect more detail on that although not so much any further large-scale divestitures beyond what has already been reported. Rather, maybe some smaller pieces that are not contributing their fair share of margin and growth. And then there are analyst who opined about a layoff, but that would also seem logical given the consolidation actions. And already there is indication of upper management changes between head of sales being removed and the hiring of a new CIO. And of course there will probably be a good portion of the latest industry buzz words like cloud and mobile, but hopefully with something factual and substantive to back them up.

    Will also be curious to see if there might be any separation of the business lines more along security and storage in some fashion that makes things more transparent to investors, but I kind of doubt that because it might set the company up for a split or activism in the future, which would go against the historic management entrenchment plan (so to speak).

    Bottom line is, all indicators are pointing at actions being taken for some long over due house cleaning that will hopefully improve margins and make for more reliable execution while setting the grounds for improved, or at least sustainable, growth.

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    • L T great level headed commentary on what seems to be the facts or at least the signs of some serious accountability to future performance.

    • Good post, LT. We'll see how it turns out.

    • "Rather, maybe some smaller pieces that are not contributing their fair share of margin and growth."

      No shortage of that, and people like that, all over the company.

      "And then there are analyst who opined about a layoff, but that would also seem logical given the consolidation actions. And already there is indication of upper management changes between head of sales being removed and the hiring of a new CIO."

      Rumor around the water cooler is, Stevie's got his direct team in place/ready to go, everything and everybody else is the great unknown. I personally suspect cuts all over for underperforming groups and individuals, particularly at the incredibly bloated low to middle/low upper management levels. Historically it's what he's done, cutting out and flattening the middle. How many levels does there need to be, really?

      "Will also be curious to see if there might be any separation of the business lines more along security and storage in some fashion that makes things more transparent to investors, but I kind of doubt that because it might set the company up for a split or activism in the future, which would go against the historic management entrenchment plan (so to speak)."

      Don't give in to your doubts ;-)

      "Bottom line is, all indicators are pointing at actions being taken for some long over due house cleaning that will hopefully improve margins and make for more reliable execution while setting the grounds for improved, or at least sustainable, growth."

      Spot on. The house needs Mr. Clean industrial strength plus extra strength fumigation to remove all the pests and vermin infesting it...

      Sentiment: Hold

 
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