In order to ensure better management of its eDiscovery process, Autodesk Inc. (ADSK) has recently selected Symantec Corporation’s (SYMC) Clearwell eDiscovery platform. Per the deal, Autodesk will deploy Clearwell to gain greater control over the eDiscovery platform, which is expected to streamline the solution, through review and production for better time management and cost reduction.
We believe that the eDiscovery solution is slowly gaining popularity, as it is beneficial for organizations in dealing with legal and regulatory matters with a single application. Presently, business operations of the major organizations are subject to plenty of legal and regulatory risks and Clearwell caters to customers looking for solutions in this domain.
This apart, the company is also winning new orders for its Internet mobile security solutions. This fact is further emphasized by Samsung Electronics selecting Symantec’s flagship product, Norton Mobile Security for a 90-day complimentary subscription on its Galaxy smartphones. Samsung is one of the largest sellers of smartphones in the U.S., selling phones that run on Google’s (GOOG) Android OS.
Earlier, the company announced the launch of the Symantec Mobile Security Assessment Suite, which offers a set of new services to evaluate mobile security postures and develop defenses against mobile threats and vulnerabilities.
The company’s third quarter results were also impressive, with both the top and bottom line surpassing the Zacks Consensus Estimates. Geographical and segmental performances were good. However, the EMEA and Service segments were the spoilers. The company generated considerable cash in the quarter and returned some to shareholders in the form of share repurchases.
Another positive for Symantec is research firm Gartner’s estimation that the worldwide spending on security software will rise 10.0% to $20.7 billion this year.
Although the company is slowly strengthening its grip on the mobile security market, the uncertainty regarding PC sales is going to hit its Consumer segment this year. Moreover, reduction in tech spending by different government and private organizations, stiff competition from McAfee — acquired by Intel Corp. (INTC) — as well as the prevailing economic turmoil in Europe may have a dampening effect on the company’s business prospects. Symantec’s guidance was also weak, and we believe that this could be due to the above mentioned reasons.
Currently, Symantec has a Zacks #3 Rank, implying a short-term Hold rating.
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