MOUNTAIN VIEW, Calif. (AP) — Shares of Symantec Corp. rose in extended trading Thursday after the security software developer announced a $500 million investment from Silver Lake and reported better-than-expected quarterly results.

The Mountain View, California-based company said it earned $170 million, or 25 cents per share, in its fiscal third quarter ended Jan. 1. Earnings, adjusted for one-time gains and costs, were 26 cents per share. A year earlier, Symantec earned $222 million, or 32 cents per share.

The results exceeded Wall Street expectations. The average estimate of 16 analysts surveyed by Zacks Investment Research was for earnings of 24 cents per share.

The company posted revenue of $909 million in the period, down from $970 million but also above Street forecasts. Ten analysts surveyed by Zacks expected $905.6 million.

Looking ahead to the fourth quarter, Symantec expects adjusted earnings in the range of 24 cents to 27 cents per share, with revenue of $885 million to $915 million. Analysts expect earnings of 25 cents per share on revenue of $901.9 million, according to FactSet.

Separately, Symantec said Silver Lake, a private equity firm that invests in technology companies, is making a $500 million investment in the company. Silver Lake Managing Partner Ken Hao was named a director, expanding the board to 10 members.

Symantec said it will use the investment to return funds to shareholders. It declared a special dividend of $4 per share, payable March 22 to shareholders of record March 8. It also plans to repurchase more than $2 billion in stock.

It plans to halve its regular dividend in the future in part because of the sale of its Veritas business and a lower projected cash flow. Its quarterly dividend will be 7.5 cents, down from 15 cents.

Symantec shares have fallen roughly 9 percent since the beginning of the year, while the Standard & Poor's 500 index has declined slightly more than 6 percent. The stock added more than 9 percent after hours to $21.


Elements of this story were generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on SYMC at


Keywords: Symantec, Earnings Report


This story has been corrected to note that the company issued guidance for the fourth quarter, not the full year.