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Symantec Dumps CEO After 10% Profit Slide

Symantec Dumps CEO After 10% Profit Slide

Overnight the Company announced that Chief Executive Enrique Salem has stepped down effective immediately and will be replaced by Chairman Steve Bennett. The move comes as the Company which owns the Norton brand struggles to grow market share.

A Company statement said “It was the board’s judgment that it was in the best interests of Symantec to make a change in the CEO.”

Chairman Steve Bennett said he believes Symantec’s assets are strong and the company is underperforming.

A contributing factor was higher costs that offset a slight rise in revenue.

The Wall Street Journal said that Symantec, which provides its trademark Norton security products for personal computers, has struggled as it looked to shift its business model to one based on regularly occurring subscription revenue and away from one-time license sales.

Selling software as a service by subscription—as Symantec is trying to do more—entitles customers to access software online and allows them to pay monthly or annually for a service they receive daily. For the software makers, the subscriber model provides recurring revenue and the opportunity to sell additional features. However, the accounting transition from the conventional license model, in which users pay a one-time fee for the software, has proved challenging.

In Australia Symantec has cut deals with several PC vendors to preload their software onto PCs. This software is difficult to remove after a 30 day trial.