Symantec

Analyst: Victor Sula, Ph.D. Initial Report July 9th, 2009

7/09/09

SYMC daily

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80 60 40 20

Millions

volume

0 May

Jun

Jul

MARKET DATA

Share Statistics (01-Jul-09)

2008

% Chg

5874

6149

-4.50%

79.20%

80.00%

1.00%

2007

Symbol

SYMC

Revenues, $ Mn.

Current price

$15.20

Gross margin

Q1 2008

Q1 2009

% Chg

1539.7

1467.6

-4.70%

80.10%

79.10%

-1.20%

Low/ High 52 weeks $10.05 –22.80 Operating margin 24.70% -105.26% -526.00% 17.70% -13.40% -175.50% Average Volume

14.4Mn

Market Cap

$12.6 Bn

Dil. Shares

831 Mn

Net margin EPS, $

7.90%

0.61

-109.00% -1479.00% 12.10% -17.00% -240.50%

-2.19

0.05

0.19

-75.40%

Outstanding

Symantec Corp.

Symantec Corporation is a global leader, providing data systems management, storage and security to customers since 1982. The Company offers products and services in four segments, including Consumer, Security and Compliance, Storage and Server Management, and Services.

The Consumer segment offers individuals and home-based businesses a variety of personal computer (PC) security software and services, including PC maintenance, Web security and file backup. The Security and Compliance segment offers Enterprise customers intranet and Internet security, management reporting and operating, and archiving solutions. The Services segment provides consulting services to consumers and enterprise customers, including product setup, systems infrastructure advisory, technical training, and security awareness and education.

In addition, the company provides maintenance support, upgrades and diagnostic services contracts to its Enterprise customers, including online and e-mail help, phone support, fee-base consultations and diagnostic services.

Symantec Corp. (Nasdaq: SYMC)

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Analyst: Victor Sula, Ph.D. Initial Report July 9th, 2009

SYMC markets its products and services through all levels of the sales chain, including distributors, brick-andmortar and online retailers, OEM, systems builders, direct sales, large account resellers and other computer/network consulting professionals. It is a worldwide company with operations in the United States, Canada, Latin America, Europe, Middle East, Africa and Asia. SYMC is headquartered in Cupertino, California.

Analyst Consensus SYMC is a global leader, providing data systems management, storage and security to consumers, small business and major corporations.

Following its earnings latest release--which revealed that the Company registered non recurring expenses of $7.5 billion and a quarterly loss of 30 cents per share for the quarter ended April 3, 2009—SYMC’s stock plunged back into its post-March-lows trading range of $12.50 and $16.

Going forward, analysts polled by Thomson Reuters expect SYMC to “Outperform,” with eight analysts recommending the stock a “Buy,” up from six analysts three months ago; 10 analysts expect the stock to “outperform,” up from eight; and 13 analysts rate the stock a “Hold,” no change from three months ago.

The Company provided guidance on May 6, saying it expects fiscal 2010 first-quarter revenue to total between $1.44-$1.5 billion and earning per share to reach between 9 cents and 11 cents per share. Thomson Reuters analysts anticipate revenue of $1.51 billion and EPS of 35 cents for the first quarter.

Highlights Like most sectors of the economy, the software security sector has struggled as consumers and businesses freeze or cut budgets for software upgrades, enhancements and initial purchases. Compounding the challenges at SYMC is the addition of McAfee’s ascendency within the sector. While SYMC was reporting steep losses in the most recent quarter, McAfee showed earnings growth, with both companies’ share prices reflecting this contrast in sector performance.

Analysts think the worst is over for the struggling software maker, however, with analysts polled by Thomson Reuters expecting the company to resume profitability and growth following the Company’s several recent announcements regarding new products and initiatives. The most recent upgrade of the Company’s stock came from Deutsche Bank on July 6, when the investment banker upgrading the stock to “Buy” from “Hold,” citing financial stability and the company’s recent product introductions.

In early July, SYMC announced its next phase of the company’s de-duplication strategy , which is expected to capitalize on industry intelligence which reveals most organizations, 51% polled, plan to expand data storage capacity but don’t have the budget to implement the plan.

The Company delineated its new de-duplication strategy into a three-step data storage reduction program offered to its customers. First, reduce data duplication everywhere within the system by moving data closer to its source.

Second, provide a centralized management of the data, incorporating SYMC products and other products into the process. And lastly, reduce or arrest infrastructure requirements by implementing SYMC’s de-duplication solution to consolidate, protect and maintain data using optimum storage space.

Also in July, SYMC announced its release of Norton Internet Security 2010 and Norton AntiVirus 2010 beta, which the Company said will address undiscovered malware by instituting its new reputation-based security technology.

Symantec Corp. (Nasdaq: SYMC)

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Analyst: Victor Sula, Ph.D. Initial Report July 9th, 2009

Since reporting disappointing fourth-quarter earnings for the period ended April 3, 2009, shares of SYMC have traded in a range of $12.50 to $16. Since the beginning of the fiscal year, SYMC has steadily lost ground to rival McAfee in market share, keeping shares of Symantec within this tight trading range, while McAfee’s shares have achieved new 52-week highs.

Technical Analysis

SYMC’s Bollinger Bands indicate lesser than normal volatility as reflected by a decrease in distance between the upper and lower bands. Trading below its mean Bollinger Band, the stock reflects a weak condition relative to its recent price action and is due for either a consolidation or breakdown. MACD reflects a bearish signal, with the indicator trending below the 9-day moving average signal line, and also below the 0 level, indicating that moving averages are trending lower.

Symantec Corp. (Nasdaq: SYMC)

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Analyst: Victor Sula, Ph.D. Initial Report July 9th, 2009

Insider Trading Activity NET SHARE PURCHASE ACTIVITY Insider Purchases - Last 6 Months

Purchases Sales Net Shares Purchased (Sold) Total Insider Shares Held % Net Shares Purchased (Sold)

Shares

Trans

N/A 1,043,230 (1,043,230)

0 34 34

2.55M (29.0%)

N/A N/A

Data provided by Thomson Financial

Symantec Corp. (Nasdaq: SYMC)

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Analyst: Victor Sula, Ph.D. Initial Report July 9th, 2009

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We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www. finra.org.

All decisions are made solely by the analyst and independent of outside parties or influence.

I, Victor Sula, Ph.D, the author of this report, certify that the material and views presented herein represent my personal opinion regarding the content and securities included in this report. In no way has my opinion been influenced by outside parties, nor has my compensation been either directly or indirectly tied to the performance of any security listed. I certify that I do not currently own, nor will own and shares or securities in any of the companies featured in this report.

Victor Sula, Ph.D. - Senior Analyst Victor Sula, Ph.D. has held the position of Senior Analyst with several independent investment research firms since 2004. Prior to 2004, Mr. Sula held Senior Financial Consultant positions within the World Bank sponsored Agency for Restructuring and Enterprise Assistance and TACIS sponsored Center for Productivity and Competitiveness of Moldova, where he was involved in corporate reorganization and liquidation. He is also employed as Associate Professor at the Academy of Economic Studies of Moldova. Mr. Sula earned his Ph.D. degree in 2001 and bachelor’s degree in Finance in 1997 from the Academy of Economic Studies of Moldova. Mr. Sula is currently a level III candidate in the CFA program.

Symantec Corp. (Nasdaq: SYMC)

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