July 26, 2012
Leaving... Symantec announced CEO Enrique Salem, seen her eon a visit to Sydney in 2009, has been replaced.
Symantec has fired its CEO, Enrique Salem, and replaced him with Chairman Steve Bennett.
The computer security and data storage company said Wednesday that the move is effective immediately. Bennett, who will stay on as chairman, says it was in Symantec's "best interests" to change CEOs.
Salem had been with the company for 19 years and was CEO for the past three years. Symantec says Salem's departure was not because of a particular event or any impropriety, but that the company had healthy assets yet is "underperforming against the opportunity."
Symantec also said Wednesday that its fiscal first-quarter net income fell 10 per cent, hurt by restructuring costs and a stronger dollar. Symantec also spent more investing in technology. A rising dollar means money earned outside the US takes a hit when it's translated back into the dollar.
Bennett was previously president and chief executive officer of Intuit, a maker of payroll and accounting software for small businesses. A statement from Symantec said under Bennett's leadership from 2007 to 2009 Intuit grew its existing businesses while simultaneously expanding into new markets, such as online banking and healthcare. He had spent 23 years at General Electric prior to Intuit.
Symantec earned $US172 million in the April-June period, up from $US191 million, a year earlier. Revenue rose 1 percent to $US1.67 billion.
Analysts, on average, were expecting revenue of $1.65 billion, according to a poll by FactSet.
The company said Asia Pacific/Japan revenue for the quarter represented 19 per cent of total revenue, an increase of 9 per cent year-over-year (or 10 per cent after currentcy adjustment).
For the current quarter, Symantec is forecasting revenue of $US1.64 billion to $US1.67 billion. Analysts are expecting revenue of $US1.69 billion.
The Mountain View, California, company's stock rose $US1.79, or 13.5 percent, to $US14.96.