Symantec Corporation: Acquiring Entrepreneurial Companies
GRADUATE SCHOOL OF BUSINESS STANFORD UNIVERSITY CASE NUMBER: SM-27 MARCH 9, 2001 SYMANTEC CORPORATION: ACQUIRING ENTREPRENEURIAL COMPANIES Symantec Corporation is a leading software company that markets development tools, utilities and application products. The company was founded in 1982 by Dr. Gary Hendrix, a leading artificial intelligence expert. Gordon E. Eubanks, Jr., founder of C&E Software, acquired Symantec in 1984, beginning the company’s strength in acquisition. Symantec completed its public offering in 1989. Since then, the company has continued to expand by growing their product franchises, acquiring emerging software companies, and establishing overseas offices. Symantec has a strong presence in software retail and distribution and a developing direct sales force. The company sells worldwide and tailors products for European and Asian countries. The company ended its fiscal year 1996 with revenues of over $445 million compared to $431 million for fiscal 1995. During fiscal 1996, Symantec recorded non-recurring charges totaling $39.2 million principally related to the acquisition of Delrina Corporation. The net loss for the year, after acquisition and other non-recurring expenses was $0.76 per share. Excluding one- time-charges and Delrina pre-acquisition losses, operating profit was $35.3 million for fiscal 1996. "Symantec continued to build market share and technical leadership in key segments of traditional strength by adding value, safety and productivity to users of desktop software and the networks to which they are connected," said Gordon E. Eubanks, Jr., president and CEO of Symantec Corporation. "Going forward, we will continue our commitment to providing products for high growth markets in advanced communications and computing platforms including Windows 95, NT, NetWare, Macintosh and the Internet." As a market leader in desktop and network utilities (Norton, pcANYWHERE), development tools (C++, Cafe) and productivity applications (ACT, Q&A), Symantec had achieved sufficient scale and product breadth to flourish in a competitive market.
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