Symantec launched an internal investigation into concerns raised by a former employee.
On the security company’s fourth quarter fiscal 2018 earnings call yesterday, Cynthia Hiponia, vice president of investor relations, said the probe isn’t related to a breach or any security concern about its products. Executives didn’t allow a question-and-answer session with investors on the call.
The board of director’s audit committee hired an outside lawyer and other advisors to help with the investigation. Symantec also notified the U.S. Securities and Exchange Commission and said the inquiry will likely delay its annual earnings report.
“The investigation is in its early stages, and the company cannot predict the duration or outcome of the investigation,” the company said in a statement.
The probe is separate to another investigation into the board for possible federal securities laws violations related to Symantec’s executive compensation awards, Reuters reports.
The news sent Symantec’s stock crashing 35 percent on Friday morning with at least nine analysts lowering their price targets.
Symantec Q4 Financials
Although the investigation overshadowed the company’s fourth-quarter earnings, the security firm did report better-that-expected revenue.
Non-GAAP revenue reached $1.234 billion, up 5 percent year over year. And fiscal full year 2018 non-GAAP revenue jumped 19 percent, compared to the previous year, hitting $4.972 billion.
Symantec CEO Greg Clark credited the company’s enterprise security and consumer digital safety businesses for the revenue boost. Its Integrated Cyber Defense platform “saw continued adoption in Q4, with our deals greater than $1 million again exceeding 100,” Clark said, according to a Seeking Alpha transcript. “We also had a large number of deals greater than $5 million in the quarter.”
Clark highlighted a couple of customer wins, including one of the 10 largest U.S. banks that signed a seven-figure deal with Symantec during the quarter. The company also closed an eight-figure deal with a large global professional services company, he said.