Quarterly dividend raised 67 percent to $0.125 per share

Announces leadership and board appointments

TEMPE, Ariz.--(BUSINESS WIRE)--NortonLifeLock Inc. (NASDAQ: NLOK), a global leader in consumer cyber safety, today reported results for its second quarter fiscal year 2020 ended October 4, 2019.

As a reminder, in connection with the sale of certain assets of our Enterprise Security business, effective November 4, 2019, we changed our corporate name from Symantec Corporation to NortonLifeLock Inc. The majority of our Enterprise Security business assets were classified as discontinued operations in our Condensed Consolidated Statements of Operations and thus excluded from continuing operations for all periods presented. Starting in the second quarter of fiscal 2020, we operate in one reportable segment. The assets and liabilities to be sold to Broadcom Inc., were classified as discontinued operations in our Condensed Consolidated Balance Sheets.

Second Quarter Fiscal 2020 Financial Highlights from Continuing Operations1



  • GAAP revenue was $608 million, as compared to $612 million in the year ago period


  • GAAP operating margin of 16.9% and non-GAAP operating margin of 29.3%


  • GAAP diluted EPS was $0.05 and non-GAAP diluted EPS was $0.18

We are also providing non-GAAP combined results of continuing operations and discontinued operations from divested assets from our Enterprise Security business to aid in the comparison to guidance we provided on August 8, 2019. The combined results are:



  • Revenue of $1,187 million, in-line with guidance of $1,155 to $1,205 million


  • Operating margin of 33.9%, up 220 basis points year-over-year, exceeding guidance of 31% to 33%


  • Fully diluted EPS of $0.46, up 10% year-over-year, exceeding guidance of $0.40 to $0.44

Capital Allocation Highlights



  • Company confirms intent to issue a $12 per share special dividend to shareholders, to be declared and distributed in the fourth quarter of fiscal 2020


  • Company raises its quarterly dividend to $0.125 per share in the third quarter, or $0.50 on an annual basis


  • Company has an existing $1.6 billion repurchase authorization

“I am proud of what this company accomplished in the second quarter,” said Rick Hill, NortonLifeLock’s Interim President and CEO. “In addition to the closing of the Broadcom transaction earlier this week, both the Enterprise Security and Consumer Cyber Safety businesses achieved revenue guidance we provided last quarter. As we move forward into transitioning to a pure play consumer company, I want to thank our employees for their dedication during this transformative period for the company. The board and I are excited to announce Vincent Pilette’s appointment as CEO, who joined us as CFO in May 2019. Under his leadership I believe NortonLifeLock will be able to capitalize on its growth opportunity and maximize value for our shareholders.”

“With the sale of our Enterprise Security assets complete, we are now able to have a singular focus on our goal to increase productivity and reduce the complexity in how we manage the business,” said Vincent Pilette, NortonLifeLock’s CFO. “During the second quarter, we were pleased to see stabilization in our direct customer count declines with ARPU growing both sequentially and year-over-year. Our original estimate of the stranded costs has now been lowered to $1.3 billion on an annualized basis with lower cash costs of $900 million. Additionally, our proceeds from the sale of our equity investments, combined with the planned sale of underutilized assets such as real estate, will cover the majority of the cash costs. We remain on track to eliminate the stranded costs over the next twelve months, with NortonLifeLock emerging as a steady, predictable business that can grow at mid-single digits with strong cash flow generation and earnings growth.”

In a separate press release, NortonLifeLock announced other leadership and board appointments.

Third Quarter Fiscal Year 2020 Guidance



  • Revenue in the range of $602 to $612 million


  • Non-GAAP EPS in the range of $0.05 to $0.10

No reconciliation of the forecasted range for non-GAAP EPS guidance is included in this release because it would be unreasonably burdensome to forecast the impacts of significant changes in our business such as the sale of our enterprise business, and related restructuring activities.

NortonLifeLock’s Board of Directors has declared a quarterly cash dividend of $0.125 per common share to be paid on December 18, 2019, to all shareholders of record as of the close of business on November 25, 2019.

To help readers understand our past financial performance and our future results, we supplement the financial results that we provide in accordance with generally accepted accounting principles, or GAAP, with non-GAAP financial measures. The methods we use to produce non-GAAP results are not in accordance with GAAP and may differ from the methods used by other companies. Additional information regarding our non-GAAP measures are provided below.

For additional details regarding NortonLifeLock’s results and outlook, please see the Earnings Presentation and the Supplemental Information on the investor relations page of our website at: https://investor.nortonlifelock.com.

Conference Call

NortonLifeLock has scheduled a conference call for 5:00 p.m. ET / 2:00 p.m. PT today to discuss its results for its second quarter fiscal 2020 ended October 4, 2019 and to review guidance. Interested parties may access the conference call through NortonLifeLock’s Investor Relations website at http://investor.nortonlifelock.com/investor-relations/events-calendar/. For telephone access to the conference, call (877) 475-6198 within the United States or (970) 297-2372 from outside the United States. Please call 15 minutes early and give the operator conference ID number 4271719.

A replay and our prepared remarks will be available on the investor relations home page shortly after the call is completed.

About NortonLifeLock

NortonLifeLock Inc. (NASDAQ: NLOK) is a global leader in consumer Cyber Safety. NortonLifeLock is dedicated to helping secure the devices, identities, online privacy, and home and family needs of nearly 50 million consumers, providing them with a trusted ally in a complex digital world. For more information, please visit www.NortonLifeLock.com.

Forward-Looking Statements:

This press release contains statements which may be considered forward-looking within the meaning of the U.S. federal securities laws. In some cases, you can identify these forward-looking statements by the use of terms such as “expect,” “will,” “continue,” or similar expressions, and variations or negatives of these words, but the absence of these words does not mean that a statement is not forward-looking. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including, but not limited to: the statements under “Third Quarter Fiscal Year 2020 Guidance;” the amount and distribution of the anticipated special dividend; the effects of the sale of substantially all of the Enterprise Security business on the Company’s business; the timing and amount of stock repurchases; the operating model of NortonLifeLock; NortonLifeLock’s future revenue and earnings growth and cash flow from operations; the amount and character of, and time to eliminate, stranded costs; the Company’s ability to monetize and use the proceeds of sales of underutilized assets to offset the cash costs to eliminate stranded costs and the resulting effect on the value of our NortonLifeLock business for shareholders; any other statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. These statements are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results expressed or implied in this press release. Such risk factors include, but are not limited to, those related to: whether the NortonLifeLock board declares a special dividend, and its ultimate size, which is based on a number of assumptions regarding the realizable net cash proceeds from the transaction and other cash flow items; the effect of the sale of substantially all of the Enterprise Security assets on NortonLifeLock’s retained businesses and products; retention of existing executive leadership team members; difficulties in improving sales and product development during leadership transitions; difficulties in executing a new operating model for the consumer cyber safety business; lower than anticipated returns from the Company's investments in direct customer acquisition; difficulties and delays in reducing run rate expenses and monetizing underutilized assets; general business and economic conditions; matters arising out of our completed Audit Committee investigation and the ongoing U.S. Securities and Exchange Commission investigation; fluctuations and volatility in NortonLifeLock’s stock price; the ability of NortonLifeLock to successfully execute strategic plans; the ability to maintain customer and partner relationships; the ability of NortonLifeLock to achieve its cost and operating efficiency goals; the anticipated growth of certain market segments; NortonLifeLock’s sales and business strategy; fluctuations in tax rates and foreign currency exchange rates; the timing and market acceptance of new product releases and upgrades; and the successful development of new products and the degree to which these products gain market acceptance. Additional information concerning these and other risk factors is contained in the Risk Factors sections of NortonLifeLock’s most recent reports on Form 10-K and Form 10-Q. NortonLifeLock assumes no obligation, and does not intend, to update these forward-looking statements as a result of future events or developments.

Use of Non-GAAP Financial Information: We use non-GAAP measures of adjusted revenues, operating margin, net income and earnings per share, which are adjusted from results based on GAAP to include certain purchase accounting adjustments and exclude certain expenses, gains and losses. We also provide the non-GAAP metric of reported billings. In addition, we are presenting certain combined non-GAAP continuing operations and non-GAAP discontinued operations results, excluding the results of discontinued operations related to our Veritas divestiture, in order to facilitate a reader’s understanding of our Q2FY20 financial performance compared to the Q2FY20 guidance provided on August 8, 2019, and the comparable prior year period. These non-GAAP financial measures are provided to enhance the user’s understanding of our past financial performance and our prospects for the future. Our management team uses these non-GAAP financial measures in assessing Symantec’s performance, as well as in planning and forecasting future periods. These non-GAAP financial measures are not computed according to GAAP and the methods we use to compute them may differ from the methods used by other companies. Non-GAAP financial measures are supplemental, should not be considered a substitute for financial information presented in accordance with GAAP and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Readers are encouraged to review the reconciliation of our non-GAAP financial measures to the comparable GAAP results, which is attached to our quarterly earnings release and which can be found, along with other financial information including the Supplemental Information, on the investor relations page of our website at: https://investor.nortonlifelock.com.

1 Revenues and associated costs of our ID Analytics solutions, which were formerly included in the Enterprise Security segment, are now included in continuing operations in our remaining reportable segment.


NORTONLIFELOCK INC.



Condensed Consolidated Balance Sheets



(In millions, unaudited)


 


 



October 4, 2019



 



March 29, 2019



ASSETS



Current assets:



 



 



 



Cash and cash equivalents



$



1,697



 



 



$



1,791



 



Short-term investments



134



 



 



252



 



Accounts receivable, net



593



 



 



708



 



Other current assets



289



 



 



286



 



Current assets of discontinued operations



7,047



 



 



149



 



Total current assets



9,760



 



 



3,186



 



Property and equipment, net



676



 



 



718



 



Operating lease assets



154



 



 






 



Intangible assets, net



1,146



 



 



1,202



 



Goodwill



2,675



 



 



2,677



 



Other long-term assets



1,818



 



 



1,163



 



Long-term assets of discontinued operations






 



 



6,992



 



Total assets



$



16,229



 



 



$



15,938



 



LIABILITIES AND STOCKHOLDERS’ EQUITY



Current liabilities:



 



 



 



Accounts payable



$



120



 



 



$



165



 



Accrued compensation and benefits



219



 



 



257



 



Current portion of long-term debt



1,245



 



 



491



 



Contract liabilities



990



 



 



1,032



 



Current operating lease liabilities



36



 



 






 



Other current liabilities



514



 



 



524



 



Current liabilities of discontinued operations



1,932



 



 



1,297



 



Total current liabilities



5,056



 



 



3,766



 



Long-term debt



3,219



 



 



3,961



 



Long-term contract liabilities



26



 



 



27



 



Deferred income tax liabilities



538



 



 



577



 



Long-term income taxes payable



1,069



 



 



1,076



 



Long-term operating lease liabilities



137



 



 






 



Other long-term liabilities



72



 



 



80



 



Long-term liabilities of discontinued operations






 



 



713



 



Total liabilities



10,117



 



 



10,200



 



Total stockholders’ equity



6,112



 



 



5,738



 



Total liabilities and stockholders’ equity



$



16,229



 



 



$



15,938



 



NORTONLIFELOCK INC.



Condensed Consolidated Statements of Operations



(In millions, except per share data, unaudited)


 


 



Three Months Ended



 



Six Months Ended



 



October 4,

2019



 



September 28,

2018



 



October 4,

2019



 



September 28,

2018



Net revenues



$



608



 



 



$



612



 



 



$



1,258



 



 



$



1,224



 



Cost of revenues



100



 



 



116



 



 



200



 



 



226



 



Gross profit



508



 



 



496



 



 



1,058



 



 



998



 



Operating expenses:



 



 



 



 



 



 



 



Sales and marketing



189



 



 



175



 



 



374



 



 



373



 



Research and development



86



 



 



105



 



 



188



 



 



214



 



General and administrative



92



 



 



101



 



 



188



 



 



220



 



Amortization of intangible assets



21



 



 



20



 



 



41



 



 



40



 



Restructuring, transition and other costs



17



 



 



52



 



 



30



 



 



137



 



Total operating expenses



405



 



 



453



 



 



821



 



 



984



 



Operating income



103



 



 



43



 



 



237



 



 



14



 



Interest expense



(46



)



 



(52



)



 



(95



)



 



(104



)



Other expense, net



(2



)



 



(23



)



 



(2



)



 



(38



)



Income (loss) from continuing operations before income taxes



55



 



 



(32



)



 



140



 



 



(128



)



Income tax expense



20



 



 



30



 



 



70



 



 



6



 



Income (loss) from continuing operations



35



 



 



(62



)



 



70



 



 



(134



)



Income from discontinued operations, net of taxes



750



 



 



54



 



 



741



 



 



66



 



Net income (loss)



$



785



 



 



$



(8



)



 



$



811



 



 



$



(68



)



 



 



 



 



 



 



 



 



Income (loss) per share - basic:



 



 



 



 



 



 



 



Continuing operations



$



0.06



 



 



$



(0.10



)



 



$



0.11



 



 



$



(0.21



)



Discontinued operations



$



1.21



 



 



$



0.09



 



 



$



1.20



 



 



$



0.11



 



Net income (loss) per share - basic (1)



$



1.27



 



 



$



(0.01



)



 



$



1.31



 



 



$



(0.11



)



 



 



 



 



 



 



 



 



Income (loss) per share - diluted:



 



 



 



 



 



 



 



Continuing operations



$



0.05



 



 



$



(0.10



)



 



$



0.11



 



 



$



(0.21



)



Discontinued operations



$



1.16



 



 



$



0.09



 



 



$



1.15



 



 



$



0.11



 



Net income (loss) per share - diluted (1)



$



1.22



 



 



$



(0.01



)



 



$



1.26



 



 



$



(0.11



)



 



 



 



 



 



 



 



 



Weighted-average shares outstanding:



 



 



 



 



 



 



 



Basic



620



 



 



630



 



 



619



 



 



627



 



Diluted



644



 



 



630



 



 



643



 



 



627



 



(1) Amounts may not add due to rounding.



NORTONLIFELOCK INC.



Condensed Consolidated Statements of Cash Flows



(In millions, unaudited)


 


 



Three Months Ended



 



Six Months Ended



 



October 4,

2019



 



September 28,

2018



 



October 4,

2019



 



September 28,

2018



OPERATING ACTIVITIES:



 



 



 



 



 



 



 



Net income (loss)



$



785



 



 



$



(8



)



 



$



811



 



 



$



(68



)



Adjustments:



 



 



 



 



 



 



 



Amortization and depreciation



93



 



 



153



 



 



251



 



 



305



 



Impairments of long-lived assets



1



 



 



3



 



 



4



 



 



7



 



Stock-based compensation expense



70



 



 



97



 



 



150



 



 



210



 



Deferred income taxes



(677



)



 



45



 



 



(707



)



 



3



 



Loss from equity interest



11



 



 



34



 



 



22



 



 



60



 



Other



17



 



 



5



 



 



30



 



 



(42



)



Changes in operating assets and liabilities, net of acquisitions:



 



 



 



 



 



 



 



Accounts receivable, net



(159



)



 



(35



)



 



111



 



 



286



 



Accounts payable



(11



)



 



(31



)



 



(32



)



 



(12



)



Accrued compensation and benefits



26



 



 



(4



)



 



(20



)



 



(81



)



Contract liabilities



32



 



 



(5



)



 



(129



)



 



(116



)



Income taxes payable



(67



)



 



(66



)



 



5



 



 



(67



)



Other assets



(10



)



 



60



 



 



(5



)



 



55



 



Other liabilities



70



 



 



(8



)



 



15



 



 



31



 



Net cash provided by operating activities



181



 



 



240



 



 



506



 



 



571



 



INVESTING ACTIVITIES:



 



 



 



 



 



 



 



Purchases of property and equipment



(27



)



 



(51



)



 



(76



)



 



(95



)



Payments for acquisitions, net of cash acquired






 



 



(12



)



 






 



 



(17



)



Proceeds from maturities and sales of short-term investments



28



 



 



35



 



 



120



 



 



99



 



Other






 



 



(2



)



 



(5



)



 



(7



)



Net cash provided by (used in) investing activities



1



 



 



(30



)



 



39



 



 



(20



)



FINANCING ACTIVITIES:



 



 



 



 



 



 



 



Net proceeds from sales of common stock under employee stock incentive plans



51



 



 



2



 



 



88



 



 



6



 



Tax payments related to restricted stock units



(13



)



 



(11



)



 



(65



)



 



(53



)



Dividends and dividend equivalents paid



(47



)



 



(50



)



 



(98



)



 



(110



)



Repurchases of common stock






 



 






 



 



(559



)



 






 



Net cash used in financing activities



(9



)



 



(59



)



 



(634



)



 



(157



)



Effect of exchange rate fluctuations on cash and cash equivalents



(8



)



 



(5



)



 



(5



)



 



(21



)



Change in cash and cash equivalents



165



 



 



146



 



 



(94



)



 



373



 



Beginning cash and cash equivalents



1,532



 



 



2,001



 



 



1,791



 



 



1,774



 



Ending cash and cash equivalents



$



1,697



 



 



$



2,147



 



 



$



1,697



 



 



$



2,147



 



NORTONLIFELOCK INC.



Reconciliation of Selected GAAP Measures to Non-GAAP Measures (1) (2)



(In millions, except per share data, unaudited)


 


 



Three Months Ended



 



October 4,

2019



 



September 28,

2018



Operating income



$



103



 



 



$



43



 



Stock-based compensation



29



 



 



38



 



Amortization of intangible assets



29



 



 



28



 



Restructuring, transition and other costs



17



 



 



52



 



Other






 



 



1



 



Operating income (Non-GAAP)



$



178



 



 



$



163



 



 



 



 



 



Operating margin



16.9



%



 



7.0



%



Operating margin (Non-GAAP)



29.3



%



 



26.6



%



 



 



 



 



Net income (loss)



$



785



 



 



$



(8



)



Adjustments to income (loss) from continuing operations:



 



 



 



Stock-based compensation



29



 



 



38



 



Amortization of intangible assets



29



 



 



28



 



Restructuring, transition and other costs



17



 



 



52



 



Other






 



 



3



 



Non-cash interest expense



5



 



 



6



 



Loss from equity interest



11



 



 



34



 



Total adjustments to GAAP income (loss) from continuing operations before income taxes



91



 



 



162



 



Adjustment to GAAP provision for income taxes



(13



)



 



1



 



Total adjustment to continuing operations, net of taxes



78



 



 



163



 



Discontinued operations, net of taxes



(750



)



 



(54



)



Net income (Non-GAAP)



$



113



 



 



$



101



 



 



 



 



 



Diluted net income (loss) per share



$



1.22



 



 



$



(0.01



)



Adjustments to diluted net income (loss) per share:



 



 



 



Stock-based compensation



0.05



 



 



0.06



 



Amortization of intangible assets



0.05



 



 



0.04



 



Restructuring, transition and other costs



0.03



 



 



0.08



 



Other






 



 






 



Non-cash interest expense



0.01



 



 



0.01



 



Loss from equity interest



0.02



 



 



0.05



 



Total adjustments to GAAP income (loss) from continuing operations before income taxes



0.14



 



 



0.26



 



Adjustment to GAAP provision for income taxes



(0.02



)



 



0.00



 



Total adjustment to continuing operations, net of taxes



0.12



 



 



0.26



 



Discontinued operations, net of taxes



(1.16



)



 



(0.09



)



Incremental dilution effect






 



 



(0.01



)



Diluted net income per share (Non-GAAP)



$



0.18



 



 



$



0.15



 



 



 



 



 



Diluted weighted-average shares outstanding



644



 



 



630



 



Incremental dilution






 



 



27



 



Diluted weighted-average shares outstanding (Non-GAAP) (3)



644



 



 



657



 



(1) This presentation includes non-GAAP measures. Non-GAAP financial measures are supplemental and should not be considered a substitute for financial information presented in accordance with GAAP. For a detailed explanation of these non-GAAP measures, see Appendix A.



(2) Amounts may not add due to rounding.



(3) Diluted GAAP and non-GAAP weighted-average shares outstanding are the same, except in periods in which there is a GAAP loss from continuing operations. In accordance with GAAP, we do not present dilution for GAAP in periods in which there is a loss from continuing operations. However, if there is non-GAAP net income, we present dilution for non-GAAP weighted-average shares outstanding in an amount equal to the dilution that would have been presented had there been GAAP income from continuing operations for the period.



NORTONLIFELOCK INC.



Reconciliation of GAAP to Non-GAAP Results of Operations - Discontinued Operations (1) (2)



(In millions, except per share data, unaudited)


 


 



Three Months Ended



 



October 4,

2019



 



September 28,

2018



Net revenues from discontinued operations



$



576



 



 



$



563



 



Contract liabilities fair value adjustment



3



 



 



9



 



Net revenues from discontinued operations (non-GAAP)



$



579



 



 



$



572



 



 



 



 



 



Operating income from discontinued operations



$



113



 



 



$



59



 



Contract liabilities fair value adjustment



3



 



 



9



 



Stock-based compensation



41



 



 



59



 



Amortization of intangible assets



29



 



 



82



 



Restructuring, transition and other costs



40



 



 



4



 



Other



(1



)



 






 



Operating income from discontinued operations (Non-GAAP)



$



224



 



 



$



212



 



 



 



 



 



Operating margin from discontinued operations



19.6



%



 



10.5



%



Operating margin from discontinued operations (Non-GAAP)



38.7



%



 



37.1



%



 



 



 



 



Income from discontinued operations, net of taxes



$



750



 



 



$



54



 



Adjustments to income from discontinued operations:



 



 



 



Contract liabilities fair value adjustment



3



 



 



9



 



Stock-based compensation



41



 



 



59



 



Amortization of intangible assets



29



 



 



82



 



Restructuring, transition and other costs



40



 



 



4



 



Other



(1



)



 



(2



)



Total adjustments to GAAP income from discontinued operations before income taxes



112



 



 



151



 



Significant tax matters (3)



(665



)



 






 



Income tax effect of non-GAAP adjustments



(14



)



 



(29



)



Income from discontinued operations, net of taxes (Non-GAAP)



$



183



 



 



$



176



 



 



 



 



 



Income from discontinued operations, net of taxes per share



 



 



 



Adjustments to diluted income per share:



$



1.16



 



 



$



0.09



 



Contract liabilities fair value adjustment



0.00



 



 



0.01



 



Stock-based compensation



0.06



 



 



0.09



 



Amortization of intangible assets



0.05



 



 



0.13



 



Restructuring, transition and other costs



0.06



 



 



0.01



 



Other



(0.00



)



 



(0.00



)



Total adjustments to GAAP income from discontinued operations before income taxes



0.17



 



 



0.24



 



Significant tax matters (3)



(1.03



)



 






 



Income tax effect of non-GAAP adjustments



(0.02



)



 



(0.05



)



Total adjustment to discontinued operations, net of taxes



(0.88



)



 



0.19



 



Incremental dilution effect






 



 



(0.01



)



Income from discontinued operations, net of taxes per share (Non-GAAP)



$



0.28



 



 



$



0.27



 



 



 



 



 



Diluted weighted-average shares outstanding



644



 



 



630



 



Incremental dilution






 



 



27



 



Diluted weighted-average shares outstanding (Non-GAAP)



644



 



 



657



 



(1) We are presenting combined non-GAAP continuing operations and discontinued operations results in order to facilitate a reader’s understanding of our Q2FY20 financial performance compared to the Q2FY20 guidance provided on August 8, 2019. We excluded the results of Veritas from these combined non-GAAP metrics because the results of Veritas were not included in our Q2FY20 guidance. See the following page for these combined results. For a detailed explanation of these non-GAAP measures, see Appendix A.



(2) Amounts may not add due to rounding.



(3) We recorded a $665 million tax benefit in discontinued operations during the three months ended October 4, 2019 to remeasure the deferred tax assets associated with the tax basis of intellectual property held by our subsidiaries organized in Ireland. We previously expected to recover the tax basis through normal operation of our Enterprise business, which is taxed at the Irish trading rate of 12.5%. We now expect to recover the tax basis through the sale of certain assets of the Enterprise business, which will be taxed at the Irish capital gains tax rate of 33%.



NORTONLIFELOCK INC.



Combined Non-GAAP Results of Operations (1)



(In millions, except per share data, unaudited)


 


 



Three Months Ended October 4, 2019



 



Continuing

Operations



 



Discontinued

Operations



 



Combined



Combined results of operations (non-GAAP):



 



 



 



 



 



Net revenues



$



608



 



 



$



579



 



 



$



1,187



 



Operating income



$



178



 



 



$



224



 



 



$



402



 



Operating margin



29.3



%



 



38.7



%



 



33.9



%



Total net income



$



113



 



 



$



183



 



 



$



296



 



 



 



 



 



 



 



Diluted weighted-average shares outstanding



644



 



 



644



 



 



644



 



Net income per share



$



0.18



 



 



$



0.28



 



 



$



0.46



 



 



 



 



 



 



 



 



Three Months Ended September 28, 2018



 



Continuing

Operations



 



Discontinued

Operations



 



Combined



Combined results of operations (non-GAAP):



 



 



 



 



 



Net revenues



$



612



 



 



$



572



 



 



$



1,184



 



Operating income



$



163



 



 



$



212



 



 



$



375



 



Operating margin



26.6



%



 



37.1



%



 



31.7



%



Total net income



$



101



 



 



$



176



 



 



$



277



 



 



 



 



 



 



 



Diluted weighted-average shares outstanding



657



 



 



657



 



 



657



 



Net income per share



$



0.15



 



 



$



0.27



 



 



$



0.42



 


Contacts

MEDIA CONTACT:

Deirdre Sena

NortonLifeLock Inc.

(310) 922-6956

INVESTOR CONTACT:

Cynthia Hiponia

NortonLifeLock Inc.

(650) 527-8020