Press Release Details

Symantec Announces Completion of Audit Committee Investigation


MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)-- Symantec Corp. (NASDAQ:SYMC) today announced that the Audit Committee of the Board of Directors (the “Audit Committee”) has concluded its internal investigation, which was originally announced in May 2018. The Audit Committee, assisted by independent legal counsel and a forensic accounting firm, conducted a thorough investigation of the allegations raised by a former employee.

The Company does not anticipate a restatement or adjustment of any audited or unaudited, filed or previously announced, GAAP or non-GAAP financial statements; except as described below with respect to a specific transaction with a customer entered into in the fourth quarter of fiscal year 2018 (ended March 30, 2018).

No employment actions with respect to any Section 16 officer have been recommended as a result of the investigation.

The Audit Committee noted relatively weak and informal processes with respect to some aspects of the review, approval and tracking of transition and transformation expenses. The Audit Committee also observed that beginning in the second quarter of fiscal year 2018 (ended September 29, 2017), the Company initiated a review by an outside accounting firm of, and took other steps to enhance, the Company’s policies and procedures regarding non-GAAP measures.

In addition to the matters announced in May 2018, the Audit Committee reviewed a transaction with a customer for which $13 million was recognized as revenue in the fourth quarter of fiscal year 2018 (which is still an open period). After subsequent review of the transaction, the Company has concluded that $12 million of the $13 million should be deferred. Accordingly, the previously announced financial results for the fourth quarter of fiscal year 2018 and the first quarter of fiscal year 2019 (ended June 29, 2018) will be revised to take into account this deferral and any other financial adjustments required as a result of this revision.

The Audit Committee also reviewed certain allegations concerning, and identified certain behavior inconsistent with, the Company’s Code of Conduct and related policies. The Audit Committee referred these matters to the Company for, and the Company intends to take, appropriate action.

The Audit Committee proposed certain recommendations which the Board of Directors has adopted, including: appointing a separate Chief Accounting Officer; appointing a separate Chief Compliance Officer reporting to the Audit Committee; clarifying and enhancing the Code of Conduct and related policies; and adopting certain enhanced controls and policies related to the matters investigated.

As previously disclosed, due to the internal investigation the Company has not filed its Annual Report on Form 10-K for the fiscal year ended March 30, 2018 (the “Form 10-K”) and Quarterly Report on Form 10-Q for the first fiscal quarter ended June 29, 2018 (the “Q1 Form 10-Q”) with the SEC.

The Company is working diligently to complete the preparation of the Form 10-K and the Q1 Form 10-Q and to facilitate the audit of the fiscal year 2018 financial statements and the review of the Q1 quarterly financial statements by its outside auditors. All of the foregoing matters are subject to review and audit by the Company’s outside auditors. Control deficiencies or weaknesses could be identified as part of this process. The Company cannot predict at this time when it will make such filings, but is currently targeting filing the Form 10-K prior to October 27, 2018.

Also as previously announced, the Company voluntarily contacted the Securities and Exchange Commission (“SEC”) regarding the Audit Committee’s investigation. The SEC commenced a formal investigation and the Company will continue to cooperate with the investigation.

About Symantec

Symantec Corporation (NASDAQ: SYMC), the world’s leading cybersecurity company, helps organizations, governments and people secure their most important data wherever it lives. Organizations across the world look to Symantec for strategic, integrated solutions to defend against sophisticated attacks across endpoints, cloud and infrastructure. Likewise, a global community of more than 50 million people and families rely on Symantec’s Norton and LifeLock product suites to protect their digital lives at home and across their devices. Symantec operates one of the world’s largest civilian cyber intelligence networks, allowing it to see and protect against the most advanced threats. For additional information, please visit or connect with us on Facebook, Twitter, and LinkedIn.

Forward-Looking Statements

This press release contains statements which may be considered forward-looking within the meaning of the U.S. federal securities laws, including the statements regarding the findings and recommendations of the Audit Committee investigation, the consequences of such investigation, and the timing of the filing of Symantec’s periodic reports and proxy statement with the SEC. These statements are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from results expressed or implied in this press release. Such risk factors include, but are not limited to, the risk that the audit of the Company’s financial statements may identify errors, which may be material or which impact the timing of Company filings, the risks associated with legal proceedings or government investigations relating to the subject matter of the Audit Committee investigation or related matters, and risks associated with additional actions the Company may take in connection with the investigation or related matters. Additional information, including other risk factors, is contained in the Risk Factors sections of Symantec’s most recent reports filed with the SEC on Form 10-K and Form 10-Q. Symantec assumes no obligation, and does not intend, to update these forward-looking statements as a result of future events or developments.

Joele Frank, Wilkinson Brimmer Katcher
Eric Brielmann / Jed Repko / Mary Aiello, 415-869-3950
Symantec Corp.
Cynthia Hiponia, (650) 527-8020

Source: Symantec Corp.