Please stand by, we're about to begin. Good day and welcome to Symantec's First Quarter 2016 Earnings Conference. Today's conference is being recorded. At this time, I'd like to turn the conference over to Sean Hazlett.

Thank you, operator. Good morning and thank you for joining our call to discuss first quarter 2016 earnings results. By now, you should have had the opportunity to review our earnings release and supplemental information. We've also posted a presentation that complements our prepared remarks. If you have not reviewed these documents, they can be found on the Investor Relations' Events webpage. A copy of today's prepared remarks will be available on the website after our call is completed. Speakers on today's call are Mike Brown, Symantec's President and CEO; and Thomas Seifert, Executive Vice President and CFO. This is a live call that will be available for replay via webcast on our website. I'd like to remind everyone that all references to financial metrics are non-GAAP unless otherwise stated. Implied billings refer to revenue plus the change in sequential deferred revenue, and we include a trended history of this metric in our supplemental information. Also, we provide year-over-year constant currency growth rates adjusted for the 14th week of the June 2014 quarter in our prepared remarks, except for statements about net income and EPS. For our fiscal year 2016 guidance, year-over-year growth rates exclude the impact of the extra week in the year ago June 2014 quarter and adjust for foreign currency. I would like to take this opportunity to highlight a few dates for you. Thomas will be presenting at the Citi Conference on September 9. We intend to announce our second quarter earnings on November 5. Please note, non-GAAP financial measures referenced during this call are reconciled to their comparable GAAP financial measures in the press release and supplemental materials posted on our website. Lastly, today's call contains forward-looking statements based on the environment as we currently see it. Those statements are based on current beliefs, assumptions…

Thanks, Mike. Operator, will you please begin polling for questions?

Thank you. We'll go first to Brad Zelnick at Jefferies.

Good morning. Thanks for taking my question and congratulations on getting this deal done. Michael A. Brown - President, Chief Executive Officer & Director: Thank you.

My first question, Mike, now that we've reached this point, how do you feel about the opportunities to separate the Consumer business from the Enterprise Security business? And I also have a follow-up for Thomas. Michael A. Brown - President, Chief Executive Officer & Director: Okay. Well, I think as we've talked about before, we see the consumer business as an integral part of what we're building as the world's largest security company. A lot of threats for consumers, I talked about some of them a few minutes ago. What we feel the Norton product is the premium product in the marketplace, and we see opportunity going forward not only to expand what we're doing for consumers from the standpoint of Internet of Things, but also to use that threat telemetry that we gain, we get threat telemetry from some 65 million consumers to help us with what's happening on the enterprise as well. So the basic endpoint technology that we use is shared across consumer and enterprise, and the threat telemetry is also very important. One of the things that we're seeing in today's environment is that many of our Enterprise customers are interested in Norton capabilities to help protect the folks, their customers, who come to their websites and access corporate data. So we think going forward there's probably a lot more opportunity for the Norton business and the Enterprise Security business to be working together.

Thanks. And, Thomas, it seems the year is off to a slower start than at least you'd expected when you last gave us guidance. You, in your prepared remarks, said that you still expect Consumer to be down 5% to down 8% on an adjusted basis. Wondering if the prior guidance for Enterprise Security for the full year to be between 1% and 6% growth still holds. And it sounds like you feel that you can make up for this with increased investments in compliance and some of the approaches that you're taking to end-of-lifeing products. Can you maybe just talk a little bit about how you see Enterprise Security for the year, and some more detail on those two initiatives? Thomas J. Seifert - Chief Financial Officer & Executive Vice President: Yes. That's a good question. So our Q2 guidance first of all takes into account a lot of puts and takes as part of the separation process. And we are seeing the coming of the completion of this process. We have the due diligence behind us and the separation of the sales force has also happened. We already have visibility that linearity for the second quarter is a lot better than what we saw in Q1. And given the strong product pipeline, we believe that we have good momentum going into the back half of the year. And we are expecting that the Enterprise Security business will continue and will grow in the second half of 2016, getting us to the guidance that we put out. Maybe for the full year, slightly lower than the midpoint, but we fully expect the momentum on the Enterprise Security side to take us to growth in the second half.

Thanks very much.

We'll move next to Philip Winslow at Credit Suisse. Philip A. Winslow - Credit Suisse Securities (USA) LLC (Broker): Hi, guys. Thanks for taking my question. A question to both Thomas and Mike. When the original plan for the tax-free spin was announced, you said that you decided to go down this path because of the tax consequences associated with the sale. When the initial sort of plan was announced today, what changed to make you think that sort of paying that 20% tax bill made sense? Was it something about your core business? Was it the value that you thought you'd receive? Exactly what changed? Michael A. Brown - President, Chief Executive Officer & Director: Sure. Let's both tackle this. I think, Phil, primarily it's a value equation. We think this is a great deal for the shareholders. Getting the $8 billion price was a critical factor obviously in the decision to sell versus spin. Other things that this does, as I'm sure you're aware of, is this provides certainty for shareholders as to the value rather than the ongoing execution and market risk associated with a public offering that would be later in time. And from the standpoint of separation, it really simplifies the separation process and de-risks that. There are some synergies, or dis-synergies, I should say, that we avoid by not having to stand up Veritas as a public company. So I think when you put that entire equation together, we feel very good about what this does for shareholders, especially combined with our return of capital to shareholders as we described through maintaining the dividends and the increased authorization that we have to buy up to $2.6 billion worth of stock. Thomas J. Seifert - Chief Financial Officer & Executive Vice President: I can only…

And we'll go next to Michael Turits at Raymond James. James Wesman - Raymond James & Associates, Inc.: Hey, guys. Good morning. It's James Wesman sitting in for Michael. Thomas, can you talk to us a little bit of what the Symantec balance sheet will look like post split. I mean what will the debt profile look like, and do you think you guys would pay down some of the debt post the Veritas sale? Thomas J. Seifert - Chief Financial Officer & Executive Vice President: Yes. So, you have to understand, we just signed the transaction and as part of our next earnings call, we are going to give guidance on how the balance sheet is going to look like post separation. The historicals are going to change. The balance sheet of the Veritas business is going to move into discontinued operations. And most of the debt is going to remain on the Symantec side. But the details will be forthcoming on our next call. James Wesman - Raymond James & Associates, Inc.: Got it. Thank you.

And we'll go next to Walter Pritchard at Citi.

Morning, guys. It's actually Jim on for Walter here. Have you guys considered spinning off some of the other underlying security assets, as well, in order to get the growth profiles that you're looking at? Michael A. Brown - President, Chief Executive Officer & Director: Well Jim, we've been clearly focused on this transaction, so that's occupied all of our capacity as it would relate to thinking about investing in other businesses. I think as we look across the Enterprise Security portfolio, as I mentioned, we're pretty excited about the fact that we grew that business on a constant currency basis for the first time in two years. So, even though we have some businesses that are not growing within that portfolio and some not growing as fast as the total, we feel like there's an opportunity with the combined strength of the portfolio to continue to get that moving. And as you know, our guidance for the year is revenue growth of 1% to 6%, and we've already hit the low end of that range in the first quarter. And with the very strong product pipeline that we've got in the second half, we feel very comfortable with that guidance for Enterprise Security.

Okay, great. And then a little bit growing off of Phil's earlier question; should we expect any M&A opportunities into the network space, and how would that affect any partnerships you have? And actually one last one would be what's the U.S. cash now? Michael A. Brown - President, Chief Executive Officer & Director: Okay. Well, I'll start with the Network Security and then we'll fill you in on U.S. cash; Thomas will. So as we've talked about before, there are quite a few players that are pretty entrenched in Network Security, and we don't believe that the right move for us next is to offer a product there to compete head-on with the Palo Alto Networks or Cisco. In fact, we very much appreciate the partnerships that we have there that we've talked about that really add to what we are offering with our ATP modules. So it's not an area that we're looking at, that's certainly not tightly aligned with the strategy that we've outlined. And I'd say further, we are seeing a lessening of the importance of the perimeter, which also affects our thinking on Network Security. And what I mean by that is more and more workloads are moving into the cloud, that's the basis for our Information Protection strategy, DLP, Encryption, Identity and Access Management. So we're seeing as more workloads move to the cloud, that doesn't mean there aren't going to be a lot of next-generation firewalls sold, but architectures are changing and we want our strategy to adapt to that. Thomas J. Seifert - Chief Financial Officer & Executive Vice President: Coming back to the cash, so today about 40% of our cash is domestic, $1.6 billion and $2.3 billion are residing outside of the U.S.

Great. Thanks, guys.

We'll go next to Matt Hedberg at RBC Capital Markets.

Thanks for taking my questions, guys, and congrats on the sale here. Michael A. Brown - President, Chief Executive Officer & Director: Thank you, Matt.

I'm curious if you can talk about the geographic performance in the quarter, and in particular I think there's been some high level talks about the EU and potentially implementing some sort of baseline breach notifications. I guess what are your thoughts there? Could that be a driver for EMEA growth? Michael A. Brown - President, Chief Executive Officer & Director: Well, I think in terms of geographical performance, the disappointment that we saw in terms of top line execution pretty much affected all segments of our business; that's new business, renewals and across the geographies. So that was an indication to us that this really is a short-term execution issue as opposed to something that is going to be problematic in one particular part of the business. As it relates to our geographic performance, I think that we had, frankly, a relatively stronger performance in the APJ region and to a lesser extent, Europe. So we feel like those businesses were performing fine for us. We just need to execute better in Q2 and we believe we will. As it relates to regulatory changes that might occur, yes, those can potentially be a stimulus for the business. But in general we do not favor regulatory changes that create mandatory responses. What's going on in the threat environment is so complex it's pretty difficult to prescribe something that works in every situation. So we would prefer that there'd be flexibility in terms of the regulatory environment so that we can adapt to threats more rapidly and create the right response for customers depending on the situation.

That's great, Mike. And then maybe to dovetail that on the U.S. side, I'm curious about the federal vertical there. Speaking of regulatory environment I know there's been a, I think, what's called a 30-day sprint to better cyber security. Sort of what's your comments on increased regulation as a backdrop, I'm curious about the federal vertical and if that could be a catalyst as well? Michael A. Brown - President, Chief Executive Officer & Director: Well, I think it could. So separate from regulation, clearly there's a need for the federal government to improve its security posture. And of course the breach we saw with Office of Personnel Management is a perfect example of that. So that's a very important vertical for us. We have quite a few dedicated folks not only working on federal opportunities but also security for state and local governments as well. So, very important vertical. That's been a real highlight for us in FY 2015 and we expect that to be part of the growth that we're seeing in Enterprise Security in the second half.

Great. Thanks a lot, guys.

We'll move next to Pat Walravens at JMP Group.

Oh, great and congratulations to you guys on the sale. Hey, Mike, can you give us some more details about the early feedback that you're getting on the ATP products? Michael A. Brown - President, Chief Executive Officer & Director: Sure, happy to. Yes, we decided that what made sense for us in terms of launching ATP and as you know Network and Email are out today with our Endpoint product really in beta but coming in the September quarter. We decided what made sense is that kind of a controlled availability that would allow us to work very closely with some key customers upfront and make sure they were getting the value from the product. And that's been a very successful strategy for us. Not only have our customers seen that we have a higher efficacy rate relative to what they have with ATP solutions in place today, meaning we're finding more things than some of the ATP solutions that have been in the market. But a good portion of those customers have now moved from that controlled availability into production. So we expect that when we get the full power of the solution, which will include the Endpoint module, we'll really be capturing a lot more of the threats and helping customers to prioritize those relative to what they have with the technology that they have today. So I think the key advantages, as we've talked about, Pat, are the ability to prioritize incidents rather than just flood security up with lots of alerts, the fact that we're doing a lot of our detection from the cloud. Our payload detonation is cloud-based, and therefore, we do not need to sell customers an expensive appliance for them to have Advanced Threat Protection capability. And then most importantly, the ability to correlate what they're seeing in their own environment with the unified security analytics platform, which gives access to all of that threat telemetry that we see at Symantec. So we think those three advantages are absolutely critical and really resonating with customers.

Great. Thanks a lot.

We'll go next to Steve Ashley at Robert W. Baird. Jason Velkavrh - Robert W. Baird & Co., Inc. (Broker): Hi. This is Jason Velkavrh on for Steve. Thank you for taking my questions. The first question is you mentioned the sales split has been complete. I'm just wondering, qualitatively, what proportion of accounts might have been transitioned to new reps? Or just more generally, is there a ramping period till those, or after the split, till reps reach full productivity and kind of how long that period might take? Michael A. Brown - President, Chief Executive Officer & Director: Yes. Well, I think we've clearly experienced that in this first quarter. And as we talked about, it was more disruptive than we probably had predicted. We believe that that really is behind us at this point. So you can imagine the process as someone gets a new territory or slightly new territory. There's new accounts, there's new pipeline for them to manage, and, of course, it's a new management chain for them to get comfortable with as well. It did affect a majority of the sales territories, which is why the disruption was extensive, and you see that in our top line performance. We do not believe Q1 is indicative of what we can do as a company in terms of our top line performance. But that transition is now behind us. It began really beginning of April, April 1. So as folks move into their second quarter, we believe that is behind us. And folks now are managing their own pipeline, the management structure and territories, quotas, all in place now for the second quarter. Thomas J. Seifert - Chief Financial Officer & Executive Vice President: And I think it's important to reiterate that it wasn't really one…

We'll move next to Daniel Ives at FBR. Daniel H. Ives - FBR Capital Markets & Co.: Yes, thanks. Could you talk maybe in this next chapter what do you think is the biggest challenge going forward as you really focus more on security in terms of M&A? And then maybe you could also talk about the opportunity here as we look out the next six months to nine months. Michael A. Brown - President, Chief Executive Officer & Director: Yes. We're very excited, Daniel, about what we see. Obviously, being a focused security company now, it's really about how do we continue to make progress on the consumer business. We've seen that a lot of the fundamentals are improving. Now having actually gone through the transition of shedding the unprofitable revenue, we're focused now from a consumer standpoint on online acquisition. And also the relationships we have with major telcos. So as we've talked about before, there's an opportunity to partner with major telcos and cable companies. So Comcast, Deutsche Telekom, SoftBank; we talked about, América Móvil in Latin America. So the partnering we're doing there plus what we're changing in terms of the way we're attracting consumers gives us not only a more profitable business going forward, but one that in the future as we expand to Internet of Things and other opportunities there, gives us an opportunity to get that business back to flat if not growing again. And then we combine that with the enterprise space which is already growing as we talked about that business on a constant currency basis growing for the first time in two years, I think speaks to the strength of the products that we have in the portfolio as well as the customer base. So as we look out for…

We'll take our next question from Robert Breza at Wunderlich Securities.

Hi, thanks for taking my questions. Just quickly, Thomas, as you look out for the next few quarters here before the official separation, obviously there's added costs. You talked about added CapEx that you're having to use for separations. Is there a way to quantify or think as we move more into the next fiscal year as two independent companies, what those added costs are that should, I would assume, go away? Thomas J. Seifert - Chief Financial Officer & Executive Vice President: Well, for next fiscal year meaning fiscal year 2017, we don't expect any additional costs. If I look at what remains to be done for this fiscal year, we said we are going to expect to stay within the cost guidance we gave on the separation side. We're going to have slightly higher CapEx in the second quarter because we now have certainty on what and how we have to separate the two companies in preparation for executing the sale now. I'm confident now with having visibility that for the remainder of the year, we're going to stay slightly below the guidance we previously gave on the CapEx side, so we are not getting to the $400 million we indicated. And beyond that, the separation is going to be completed by the time we end our next fiscal year, so I don't expect any or a lot of trading costs coming from that, to be honest. And as part of us setting guidance for the remainder of the year, we'll make sure that both cash flow guidance as well as CapEx guidance is going to reflect the new structure that Symantec security is going to have moving forward.

Should we expect cost savings though as we move into the following year, following after the separation? Or do you think the costs will probably be pretty much as is after the separation? Thomas J. Seifert - Chief Financial Officer & Executive Vice President: Well, we always look at opportunities how we can accelerate and improve our margin profile, and that is not going to stop just past the separation. But I think it's also important to realize that moving forward on the Enterprise Security side, we want to grow this business. This is where the primary focus is going to be. We said that on our Analyst Day that second half in 2016 and 2017 will be growth focused, especially for the Enterprise Security business. On the Norton side, we are proud of the Norton team performance and how they have been executing so far already in terms of getting this business and the highly attractive profile from an operating margin perspective.

Great. Thank you.

We'll move next to Mike Cikos at Macquarie. Michael Cikos - Macquarie Capital (USA), Inc.: Hi, guys. Just regarding the three factors you pointed to for the disappointing revenue this quarter, you had the sales force transition, the separation and then this accelerated due diligence process for Veritas. With respect to the sales force transition, I was hoping you guys could walk us through some of the changes that were made and how the structure of the new sales organization has changed from what it previously was? And then for the separation, can you guys comment on what your end customers, if they've changed at all their buying behavior or spending patterns based on this move that you guys have made? Michael A. Brown - President, Chief Executive Officer & Director: Okay. Well, Mike, on the sales force transition, it's very complex from a standpoint of the number of territories that were changed, but it's pretty straightforward from the standpoint of what actually happened. So you can imagine a sales force that is, globally, covering both the Veritas business as well as Symantec Security now having to be completely separated into dedicated capability on sales and marketing, so that on April 1 folks are either working on the Veritas side, on that set of products, or on the Symantec Security side. So you can imagine the number of territories that changed and of course the management structure that was involved there. Quotas that needed to be set, pipeline that needed to be transferred, so a lot of transition activity there in this first quarter. Now as we've talked about before, that is behind us now, so we're not making any changes. People now have some experience with their pipeline, their product lines that they need to be covering. We did…

And we'll go next to Fatima Boolani at UBS.

Good morning. Thank you for taking my questions. I'm curious if you can comment on your approach to channel partners in your indirect distribution side of the house as a result of the security portfolio increasingly shifting to a more subscription-oriented sale. Michael A. Brown - President, Chief Executive Officer & Director: Sure. As we talked about before, we introduced a new channel program last year, and the key elements of that channel program were to focus on those partners who were able to create high value versus high volume. What we mean by that is those who were actually investing in Symantec or Veritas, they were required to get certified in certain product lines so that we had a channel sales force that was focused on what are the key benefits that we're bringing into the marketplace versus just focused on volume and price. And I think that's something that has resonated with the channel partners that we want to continue with going forward. We have gone through a transition now where those partners are getting aligned across the two different businesses, Symantec and Veritas. And I'd say that we have some additional work to do, especially on the security side. If I had to look at the channel programs that we've had, I think they favor the higher value transactions that tended to come with our Veritas portfolio. So we have a little more work to do on the Symantec side in terms of recruiting some additional partners. And in fact, we're intending to fast track about 150 additional partners for the Symantec channel as we continue through the rest of this year. So we're keeping the features of what we did with the new channel program we introduced last year, this focus on high value, the certifications, working with partners who really want to focus on our product line. But as we go forward, there's going to be some change in the configuration of partners on the Symantec Security side to be able to allow us to have the right coverage worldwide with the channel program.

And a question for Thomas if I could; Thomas, with respect to the IT in-sourcing project that was underway as of last year, I'm wondering where that process is? If that's entirely moved onshore, if you will, and if there's any color commentary you can provide there? Thomas J. Seifert - Chief Financial Officer & Executive Vice President: IT in-sourcing, I understood you correctly, right?

Yes, that's correct. Thomas J. Seifert - Chief Financial Officer & Executive Vice President: Yes. So we're still making good progress working along the milestones we have outlined. We are not completely done yet. We'll get this done in conjunction with moving what we call into operational separation of the two businesses beginning of October.

And a last one for me, if I may, we've seen a lot of consolidation in the Cloud Access Security Broker market and that's certainly an area that you have products on the roadmap, and I'm wondering if you can comment on some of the trends you're seeing in fees and how customers are perceiving the combination of DLP and CASB offerings? Thank you. Michael A. Brown - President, Chief Executive Officer & Director: Yes. Your point to what we see as a bright opportunity for us, because there's no question as more workloads move into the cloud, we need to make sure that that data is protected and we know who's accessing that information. So the combination of what we offer with Identity and Access Management, DLP, Encryption and an area that we've also identified, User Behavioral Analytics, really starts to put a full picture together in terms of whose accessing that information, what are they accessing and why are they accessing that. So this space is one that we believe we have the right assets to compete in, and it's an area that we will continue to invest in for the future. We see this as an emerging area that customers are getting increasingly interested in, and it's because of what we've talked about already, the fact that more and more workloads are moving to the cloud, people are accessing that work from outside a corporate perimeter and using mobile devices to get there. So we believe Symantec has some strong assets to play there.

And that does conclude today's Q&A session. At this time I'd like to turn the conference back over to management for any closing remarks. Michael A. Brown - President, Chief Executive Officer & Director: Thank you very much for joining us.

And that does conclude today's conference. Again, thank you for your participation.