Symantec warned Thursday (May 10) that its financial results and earnings targets could be altered depending on the outcome of an internal investigation brought on by the concerns of an ex-employee.
In a press release announcing quarterly results, the security software company said the audit committee of the board of directors has started an internal investigation in connection with concerns raised by a former employee and that it has hired an independent counsel and other advisors to assist it in its investigation. Symantec said it alerted the Securities and Exchange Commission and that it will continue to keep the government agency apprised of the inquiry. “The investigation is in its early stages and the company cannot predict the duration or outcome of the investigation,” said Symantec. “The company’s financial results and guidance may be subject to change based on the outcome of the audit committee investigation. It is unlikely that the investigation will be completed in time for the company to file its annual report on Form 10-K for the fiscal year ended March 30, 2018 in a timely manner.”
The comments on the part of Symantec prompted Rosen Law Firm, a global investor-rights law firm, to announce it is looking into claims on behalf of Symantec shareholders that the company may have issued information to the public that was misleading. Symantec’s stock fell sharply on the news of the internal investigation.
For its fiscal fourth quarter, Symantec reported a net loss of $35 million or $0.06 a share, which is narrower than the net loss of $143 million or $0.23 a share in the year-earlier fiscal fourth quarter. Revenue increased 10 percent to $1.22 billion. Wall Street was expecting Symantec to have a profit of $0.39 a share and revenue of $1.19 billion, noted Reuters. For the full year, it is forecasting revenue of between $4.76 billion and $4.9 billion, which is below the $4.93 billion Wall Street is looking for. The full-year EPS projection is for $1.50 to $1.65 a share, which is lower than the $1.80 Wall Street forecasted, noted the report.