Symantec has announced job cuts to save $200 million in expenses after a poor financial showing.
The cuts were announced at the same time as the company its third-quarter results. Earnings were 12 cents per share on $1.31 billion revenue but the software vendor was expecting to malke14 or 15 cents per share on revenue as high as $1.35 billion.
It put some of the blame on its Data Center Management Group, which sells the storage software Symantec acquired in its 2005 purchase of Veritas. Revenue from this side of the business - represents more than a quarter of Symantec's overall business - fell eight percent year over year.
Symantec said it plans to cut $200 million in costs by reducing hiring, consolidating some of its offices, and by making some staff reductions. The software vendor's consumer business, under threat from Microsoft's competing security products, was a bright spot for the quarter. Revenue there was up 24 percent, Symantec said.
In the meantime, EMC reported record revenue for its fourth quarter, propelled by strong growth in its RSA security division and VMware subsidiary.
Revenue was up 19 percent to $3.21 billion, equating to 18 cents per share - two cents higher than expected. The company attributed its performance to double-digit growth in its systems, software and services offerings across the world.
The quarter is the first that includes revenue from RSA Security, which EMC purchased in June for $2.1 billion. RSA's revenues grew 26 percent over the quarter a year before, to $114 million. Revenue for EMC's VMware subsidiary increased to $232 million, a 101 percent increase. The jump comes from increased demand for VMware Infrastructure 3, VMware's virtualisation software suite for servers and storage networks.