BusinessWire

NortonLifeLock Delivers Sustainable Growth with Q2 Revenue Up 5%

Reported Billings Growth Up 7% and Customer Count Increased More Than 600,000

TEMPE, Ariz.--(BUSINESS WIRE)--NortonLifeLock Inc. (NASDAQ: NLOK), a global leader in consumer Cyber Safety, today reported results for its fiscal year 2021 second quarter which ended October 2, 2020.



Second quarter GAAP revenue from continuing operations was $626 million, compared to $608 million a year ago which included revenue from ID Analytics ($13 million in Q2 Fiscal 2020). Q2 GAAP diluted EPS from continuing operations was $0.28, compared to $0.06 a year ago.

Q2 Key Highlights

Year-over-year

  • Revenue was $626 million, up 5% in USD and up 4% in constant currency
  • Non-GAAP diluted EPS was $0.36, compared to $0.18 a year ago, up 100%
  • Reported billings growth up 7%
  • Direct customer count of 20.7 million, up 608,000
  • Average revenue per user of $9.10 per month, up 2%
  • Non-GAAP operating margin was 50%, up 20 points

“We’ve achieved another strong quarter where we grew the business mid-single digits,” said Vincent Pilette, CEO of NortonLifeLock. “Our second quarter performance underscores our relentless focus on operational discipline and product innovation. Our ambition is to bring Cyber Safety to everyone.”

Fiscal 2021 Q3 Guidance

  • Revenue in the range of $625 to $635 million, translating to approximately 4% to 5% growth, adjusting for ID Analytics revenue ($15 million in Q3 Fiscal 2020)
  • Non-GAAP EPS in the range of $0.36 to $0.38

Quarterly Cash Dividend

NortonLifeLock’s Board of Directors has declared a quarterly cash dividend of $0.125 per common share to be paid on December 16, 2020 to all shareholders of record as of the close of business on November 23, 2020.

Conference Call
Fiscal 2021 Q2 Earnings Call
November 5, 2020
2 p.m. PST / 5 p.m. EST

Domestic: (866) 538-3137 | International: (929) 517-9556
Conference ID: 2059444
Live webcast: Investor.NortonLifeLock.com (replay will be posted after the conference call)

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. 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 restructuring activities related to the sale of our enterprise business.

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 Investor.NortonLifeLock.com.

About NortonLifeLock Inc.

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 approximately 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 “Fiscal Year 2021 Q3 Guidance,” including expectations relating to operating margin and annualized EPS; 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 long-term operating model of NortonLifeLock; NortonLifeLock’s future revenue growth and cash flow from operations; statements regarding expectations of the recurring nature of consumer subscriptions; statements regarding the compliance with our debt instruments and covenants thereunder; the estimated unrealized cost savings from estimates of future results; the estimated amount, and the Company’s ability to monetize and use the proceeds of sales, of underutilized assets; 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: the current and future impact of the COVID-19 pandemic on the Company’s business and industry; the effect of the sale of substantially all of the Enterprise Security assets on NortonLifeLock’s retained businesses and products; retention of executive leadership team members; difficulties in improving sales and product development during leadership transitions; difficulties in executing the 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 operating margin, net income and earnings per share, which are adjusted from results based on GAAP and exclude certain expenses, gains and losses. We also provide the non-GAAP metrics of Consumer revenues, constant currency revenues and Consumer reported billings, which exclude revenues from our divested ID Analytics solutions. 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 NortonLifeLock’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 Investor.NortonLifeLock.com.

NORTONLIFELOCK INC.

Condensed Consolidated Balance Sheets

(In millions, unaudited)

 

 

October 2, 2020

 

April 3, 2020

ASSETS

Current assets:

 

 

 

Cash and cash equivalents

$

1,009

 

 

 

$

2,177

 

Short-term investments

40

 

 

 

86

 

Accounts receivable, net

96

 

 

 

111

 

Other current assets

377

 

 

 

435

 

Assets held for sale

270

 

 

 

270

 

Total current assets

1,792

 

 

 

3,079

 

Property and equipment, net

75

 

 

 

238

 

Operating lease assets

85

 

 

 

88

 

Intangible assets, net

1,020

 

 

 

1,067

 

Goodwill

2,596

 

 

 

2,585

 

Other long-term assets

745

 

 

 

678

 

Total assets

$

6,313

 

 

 

$

7,735

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

 

 

 

Accounts payable

$

66

 

 

 

$

87

 

Accrued compensation and benefits

73

 

 

 

115

 

Current portion of long-term debt

47

 

 

 

756

 

Contract liabilities

1,035

 

 

 

1,049

 

Current operating lease liabilities

28

 

 

 

28

 

Other current liabilities

499

 

 

 

587

 

Total current liabilities

1,748

 

 

 

2,622

 

Long-term debt

3,556

 

 

 

3,465

 

Long-term contract liabilities

39

 

 

 

27

 

Deferred income tax liabilities

180

 

 

 

149

 

Long-term income taxes payable

1,117

 

 

 

1,310

 

Long-term operating lease liabilities

81

 

 

 

73

 

Other long-term liabilities

68

 

 

 

79

 

Total liabilities

6,789

 

 

 

7,725

 

Total stockholders’ equity (deficit)

(476

)

 

 

10

 

Total liabilities and stockholders’ equity (deficit)

$

6,313

 

 

 

$

7,735

 

 

NORTONLIFELOCK INC.

Condensed Consolidated Statements of Operations (1)

(In millions, except per share data, unaudited)

 

 

Three Months Ended

 

Six Months Ended

 

October 2,

2020

 

October 4,

2019

 

October 2,

2020

 

October 4,

2019

Net revenues

$

626

 

 

 

$

608

 

 

 

$

1,240

 

 

 

$

1,258

 

 

Cost of revenues

90

 

 

 

97

 

 

 

176

 

 

 

193

 

 

Gross profit

536

 

 

 

511

 

 

 

1,064

 

 

 

1,065

 

 

Operating expenses:

 

 

 

 

 

 

 

Sales and marketing

143

 

 

 

189

 

 

 

288

 

 

 

373

 

 

Research and development

63

 

 

 

85

 

 

 

128

 

 

 

186

 

 

General and administrative

68

 

 

 

90

 

 

 

121

 

 

 

186

 

 

Amortization of intangible assets

18

 

 

 

21

 

 

 

36

 

 

 

41

 

 

Restructuring and other costs

14

 

 

 

17

 

 

 

141

 

 

 

30

 

 

Total operating expenses

306

 

 

 

402

 

 

 

714

 

 

 

816

 

 

Operating income

230

 

 

 

109

 

 

 

350

 

 

 

249

 

 

Interest expense

(37

)

 

 

(46

)

 

 

(77

)

 

 

(95

)

 

Other income (expense), net

38

 

 

 

(3

)

 

 

57

 

 

 

(2

)

 

Income from continuing operations before income taxes

231

 

 

 

60

 

 

 

330

 

 

 

152

 

 

Income tax expense

65

 

 

 

22

 

 

 

15

 

 

 

76

 

 

Income from continuing operations

166

 

 

 

38

 

 

 

315

 

 

 

76

 

 

Income (loss) from discontinued operations

(102

)

 

 

747

 

 

 

(133

)

 

 

735

 

 

Net income

$

64

 

 

 

$

785

 

 

 

$

182

 

 

 

$

811

 

 

 

 

 

 

 

 

 

 

Income (loss) per share - basic:

 

 

 

 

 

 

 

Continuing operations

$

0.28

 

 

 

$

0.06

 

 

 

$

0.53

 

 

 

$

0.12

 

 

Discontinued operations

$

(0.17

)

 

 

$

1.20

 

 

 

$

(0.23

)

 

 

$

1.19

 

 

Net income per share - basic (2)

$

0.11

 

 

 

$

1.27

 

 

 

$

0.31

 

 

 

$

1.31

 

 

 

 

 

 

 

 

 

 

Income (loss) per share - diluted:

 

 

 

 

 

 

 

Continuing operations

$

0.28

 

 

 

$

0.06

 

 

 

$

0.52

 

 

 

$

0.12

 

 

Discontinued operations

$

(0.17

)

 

 

$

1.16

 

 

 

$

(0.22

)

 

 

$

1.14

 

 

Net income per share - diluted (2)

$

0.11

 

 

 

$

1.22

 

 

 

$

0.30

 

 

 

$

1.26

 

 

 

 

 

 

 

 

 

 

Weighted-average shares outstanding:

 

 

 

 

 

 

 

Basic

592

 

 

 

620

 

 

 

591

 

 

 

619

 

 

Diluted

600

 

 

 

644

 

 

 

607

 

 

 

643

 

 

 

(1)

 

The six months ended October 2, 2020 consisted of 26 weeks whereas the six months ended October 4, 2019 consisted of 27 weeks. The impact of the extra week on revenues in the six months ended October 4, 2019 is estimated to be approximately $44 million.

(2)

Net income per share 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 2,

2020

 

October 4,

2019

 

October 2,

2020

 

October 4,

2019

OPERATING ACTIVITIES:

 

 

 

 

 

 

 

Net income

$

64

 

 

 

$

785

 

 

 

$

182

 

 

 

$

811

 

 

Adjustments:

 

 

 

 

 

 

 

Amortization and depreciation

39

 

 

 

93

 

 

 

85

 

 

 

251

 

 

Impairments of current and long-lived assets

3

 

 

 

1

 

 

 

88

 

 

 

4

 

 

Stock-based compensation expense

20

 

 

 

70

 

 

 

45

 

 

 

150

 

 

Deferred income taxes

10

 

 

 

(677

)

 

 

30

 

 

 

(707

)

 

Gain on extinguishment of debt

 

 

 

 

 

 

(20

)

 

 

 

 

Loss from equity interest

 

 

 

11

 

 

 

 

 

 

22

 

 

Gain on sale of property

(35

)

 

 

 

 

 

(35

)

 

 

 

 

Non-cash operating lease expense

5

 

 

 

11

 

 

 

11

 

 

 

23

 

 

Other

14

 

 

 

6

 

 

 

38

 

 

 

7

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable, net

8

 

 

 

(159

)

 

 

13

 

 

 

111

 

 

Accounts payable

4

 

 

 

(11

)

 

 

(24

)

 

 

(32

)

 

Accrued compensation and benefits

3

 

 

 

26

 

 

 

(36

)

 

 

(20

)

 

Contract liabilities

4

 

 

 

32

 

 

 

(25

)

 

 

(129

)

 

Income taxes payable

(211

)

 

 

(67

)

 

 

(299

)

 

 

5

 

 

Other assets

(41

)

 

 

(10

)

 

 

21

 

 

 

(5

)

 

Other liabilities

 

 

 

70

 

 

 

(17

)

 

 

15

 

 

Net cash provided by (used in) operating activities

(113

)

 

 

181

 

 

 

57

 

 

 

506

 

 

INVESTING ACTIVITIES:

 

 

 

 

 

 

 

Purchases of property and equipment

(2

)

 

 

(27

)

 

 

(3

)

 

 

(76

)

 

Proceeds from maturities and sales of short-term investments

17

 

 

 

28

 

 

 

46

 

 

 

120

 

 

Proceeds from sales of short-term investments

1

 

 

 

 

 

 

1

 

 

 

 

 

Proceeds from sale of property

118

 

 

 

 

 

 

118

 

 

 

 

 

Other

 

 

 

 

 

 

(5

)

 

 

(5

)

 

Net cash provided by investing activities

134

 

 

 

1

 

 

 

157

 

 

 

39

 

 

FINANCING ACTIVITIES:

 

 

 

 

 

 

 

Repayments of debt and related equity component

(750

)

 

 

 

 

 

(1,929

)

 

 

 

 

Proceeds from issuance of debt, net of issuance costs

750

 

 

 

 

 

 

750

 

 

 

 

 

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

8

 

 

 

51

 

 

 

10

 

 

 

88

 

 

Tax payments related to restricted stock units

(7

)

 

 

(13

)

 

 

(30

)

 

 

(65

)

 

Dividends and dividend equivalents paid

(82

)

 

 

(47

)

 

 

(187

)

 

 

(98

)

 

Repurchases of common stock

(5

)

 

 

 

 

 

(5

)

 

 

(559

)

 

Net cash used in financing activities

(86

)

 

 

(9

)

 

 

(1,391

)

 

 

(634

)

 

Effect of exchange rate fluctuations on cash and cash equivalents

1

 

 

 

(8

)

 

 

9

 

 

 

(5

)

 

Change in cash and cash equivalents

(64

)

 

 

165

 

 

 

(1,168

)

 

 

(94

)

 

Beginning cash and cash equivalents

1,073

 

 

 

1,532

 

 

 

2,177

 

 

 

1,791

 

 

Ending cash and cash equivalents

$

1,009

 

 

 

$

1,697

 

 

 

$

1,009

 

 

 

$

1,697

 

 

 

NORTONLIFELOCK INC.

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

(In millions, except per share data, unaudited)

 

 

Three Months Ended

 

October 2,

2020

 

October 4,

2019

Operating income

$

230

 

 

 

$

109

 

 

Stock-based compensation

19

 

 

 

29

 

 

Amortization of intangible assets

25

 

 

 

29

 

 

Restructuring and other costs

14

 

 

 

17

 

 

Litigation settlement charges

25

 

 

 

 

 

Other

1

 

 

 

 

 

Operating income (Non-GAAP)

$

314

 

 

 

$

183

 

 

 

 

 

 

Operating margin

36.7

 

%

 

17.9

 

%

Operating margin (Non-GAAP)

50.2

 

%

 

30.1

 

%

 

 

 

 

Net income

$

64

 

 

 

$

785

 

 

Adjustments to income from continuing operations:

 

 

 

Stock-based compensation

19

 

 

 

29

 

 

Amortization of intangible assets

25

 

 

 

29

 

 

Restructuring and other costs

14

 

 

 

17

 

 

Litigation settlement charges

25

 

 

 

 

 

Other

1

 

 

 

 

 

Non-cash interest expense

2

 

 

 

5

 

 

Loss from equity method investment

 

 

 

11

 

 

Gain on sale of property

(35

)

 

 

 

 

Total adjustments to GAAP income from continuing operations before income taxes

51

 

 

 

91

 

 

Adjustment to GAAP provision for income taxes

(2

)

 

 

(13

)

 

Total adjustment to continuing operations, net of taxes

49

 

 

 

78

 

 

Discontinued operations

102

 

 

 

(747

)

 

Net income (Non-GAAP)

$

215

 

 

 

$

116

 

 

 

 

 

 

Diluted net income per share

$

0.11

 

 

 

$

1.22

 

 

Adjustments to diluted net income per share:

 

 

 

Stock-based compensation

0.03

 

 

 

0.05

 

 

Amortization of intangible assets

0.04

 

 

 

0.05

 

 

Restructuring and other costs

0.02

 

 

 

0.03

 

 

Litigation settlement charges

0.04

 

 

 

 

 

Other

0.00

 

 

 

 

 

Non-cash interest expense

0.00

 

 

 

0.01

 

 

Loss from equity method investment

 

 

 

0.02

 

 

Gain on sale of property

(0.06

)

 

 

 

 

Total adjustments to GAAP income from continuing operations before income taxes

0.09

 

 

 

0.14

 

 

Adjustment to GAAP provision for income taxes

(0.00

)

 

 

(0.02

)

 

Total adjustment to continuing operations, net of taxes

0.08

 

 

 

0.12

 

 

Discontinued operations

0.17

 

 

 

(1.16

)

 

Diluted net income per share (Non-GAAP)

$

0.36

 

 

 

$

0.18

 

 

 

 

 

 

Diluted weighted-average shares outstanding

600

 

 

 

644

 

 

Incremental dilution

 

 

 

 

 

Diluted weighted-average shares outstanding (Non-GAAP)

600

 

 

 

644

 

 

 

(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.

 

NORTONLIFELOCK INC.

Consumer Revenues, Consumer Reported Billings and Consumer Cyber Safety Metrics

(In millions, except per user data, unaudited)

 

Consumer Revenues (Non-GAAP)

 

 

 

 

 

 

Three Months Ended

 

October 2,
2020

 

October 4,
2019

 

Variance in %

Revenues

$

626

 

 

$

608

 

 

3

%

Exclude revenues from ID Analytics (1)

 

 

 

 

(13

)

 

 

Consumer revenues (Non-GAAP)

 

626

 

 

 

595

 

 

5

%

Exclude foreign exchange impact (2)

 

(5

)

 

 

 

 

 

Constant currency adjusted consumer revenues (Non-GAAP)

$

621

 

 

$

595

 

 

4

%

Consumer Reported Billings (Non-GAAP)

 

 

Three Months Ended

 

October 2,
2020

 

October 4,
2019

 

Variance in %

Revenues

$

626

 

 

$

608

 

 

3

%

Add: Contract liabilities (end of period)

 

1,074

 

 

 

1,016

 

 

 

Less: Contract liabilities (beginning of period)

 

(1,058

)

 

 

(1,011

)

 

 

Reported billings (Non-GAAP)

 

642

 

 

 

613

 

 

5

%

Exclude revenue from ID Analytics (1)

 

 

 

 

(13

)

 

 

Consumer reported billings (Non-GAAP)

$

642

 

 

$

600

 

 

7

%

Consumer Cyber Safety Metrics

 

Three Months Ended

 

October 2,
2020

 

July 3,
2020

 

October 4,
2019

Direct customer revenues

$

563

 

$

552

 

$

536

Partner revenues

$

63

 

$

62

 

$

59

Revenues from ID Analytics

$

 

$

 

$

13

Average direct customer count

 

20.6

 

 

20.4

 

 

20.1

Direct customer count (at quarter end)

 

20.7

 

 

20.6

 

 

20.1

Direct average revenue per user (ARPU)

$

9.10

 

$

9.03

 

$

8.88

 

(1)

 

In the three months ended April 3, 2020, we divested our ID Analytics solutions. We present consumer reported billings and consumer revenues to enhance comparability of the reported billings and revenues of our remaining solutions to the year ago period.

(2)

Calculated using year ago foreign exchange rates.

 

NORTONLIFELOCK INC.

Appendix A

Explanation of Non-GAAP Measures and Other Items

Objective of non-GAAP measures: We believe our presentation of non-GAAP financial measures, when taken together with corresponding GAAP financial measures, provides meaningful supplemental information regarding the Company’s operating performance for the reasons discussed below. Our management team uses these non-GAAP financial measures in assessing NortonLifeLock’s performance, as well as in planning and forecasting future periods. Due to the importance of these measures in managing the business, we use non-GAAP measures in the evaluation of management’s compensation. 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 and 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.

Contract liabilities adjustment: Our non-GAAP net revenues eliminate the impact of contract liabilities purchase accounting adjustments required by GAAP. GAAP requires an adjustment to the liability for acquired contract liabilities such that the liability approximates how much we, the acquirer, would have to pay a third party to assume the liability. We believe that eliminating the impact of this adjustment improves the comparability of revenues between periods. Also, although the adjustment amounts will never be recognized in our GAAP financial statements, we do not expect the acquisitions to affect the future renewal rates of revenues excluded by the adjustments. In addition, our management uses non-GAAP net revenues, adjusted for the impact of purchase accounting adjustments to assess our operating performance and overall revenue trends. Nevertheless, non-GAAP net revenues has limitations as an analytical tool and should not be considered in isolation or as a substitute for GAAP net revenues. We believe these adjustments are useful to investors as an additional means to reflect revenue trends of our business. However, other companies in our industry may not calculate these measures in the same manner which may limit their usefulness for comparative purposes.

Stock-based compensation: This consists of expenses for employee restricted stock units, performance-based awards, bonus share programs, stock options and our employee stock purchase plan, determined in accordance with GAAP. We evaluate our performance both with and without these measures because stock-based compensation is a non-cash expense and can vary significantly over time based on the timing, size, nature and design of the awards granted, and is influenced in part by certain factors that are generally beyond our control, such as the volatility of the market value of our common stock. In addition, for comparability purposes, we believe it is useful to provide a non-GAAP financial measure that excludes stock-based compensation to facilitate the comparison of our results to those of other companies in our industry.

Amortization of intangible assets: Amortization of intangible assets consists of amortization of acquisition-related intangibles assets such as developed technology, customer relationships and trade names acquired in connection with business combinations. We record charges relating to the amortization of these intangibles within both cost of revenues and operating expenses in our GAAP financial statements. Under purchase accounting, we are required to allocate a portion of the purchase price to intangible assets acquired and amortize this amount over the estimated useful lives of the acquired intangible assets. However, the purchase price allocated to these assets is not necessarily reflective of the cost we would incur to internally develop the intangible asset. Further, amortization charges for our acquired intangible assets are inconsistent in size and are significantly impacted by the timing and valuation of our acquisitions. We eliminate these charges from our non-GAAP operating results to facilitate an evaluation of our current operating performance and provide better comparability to our past operating performance.

Restructuring and other costs: Restructuring charges are costs associated with a formal restructuring plan and are primarily related to employee severance and benefit arrangements, contract termination costs, and assets write-offs, as well as other exit and disposal costs. Included in other exit and disposal costs are advisory fees incurred in connection with restructuring events and facilities exit costs. Separation costs primarily consist of consulting costs incurred in connection with the divestiture of our Enterprise Security business (the Broadcom sale). We exclude restructuring and other costs from our non-GAAP results as we believe that these costs are incremental to core activities that arise in the ordinary course of our business and do not reflect our current operating performance, and that excluding these charges facilitates a more meaningful evaluation of our current operating performance and comparisons to our past operating performance.


Contacts

Investor Contact
Mary Lai
NortonLifeLock Inc.
IR@NortonLifeLock.com

Media Contact
Spring Harris
NortonLifeLock Inc.
Press@NortonLifeLock.com


Read full story here