Ladies and gentlemen, my name is Ian, and I'll be your conference operator today. At this time I would like to welcome everyone to the Fiscal Third Quarter 2017 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. . I would now like to turn the call over to Mr. Jonathan Doros. Sir, you may begin.

Good afternoon and thank you for joining our call to discuss our third quarter fiscal year 2017 earnings results. We've posted the earnings materials and prepared remarks to our Investor Relations, Events webpage. Speakers on today's call are Greg Clark, Symantec's CEO, and Nick Noviello, 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. We provide year-over-year constant currency growth rates in our prepared remarks for revenue. All non-GAAP revenue and expenses excludes the impact of Veritas. However, the continuing operations deferred revenue on the balance sheet includes a portion of Veritas deferred revenue from Symantec and Veritas bundled contracts entered into prior to operational separation. The Veritas deferred revenue from those contracts will amortize into discontinued operations. As a result, implied billings growth calculated from the change in deferred on the balance sheet will not be representative of stand-alone Symantec's performance, as it will include an impact from Veritas. Please note, non-GAAP financial measures referenced during this call are reconciled to their comparable GAAP financial measure in the press release and supplemental materials posted on our website. Today's call contains forward-looking statements based on the environment as we currently see it. Those statements are based on current beliefs, assumptions and expectations, speak only as of the current date and, as such, involve risks and uncertainties that may cause actual results to differ materially from our current expectations. Please refer to cautionary statement in our press release for more information. You will also find a detailed discussion about our risk factors in our filings with the SEC and, in particular, on Form 10-Q for the quarter ended September 30, 2016. As you may have seen, today we made an announcement about a possible debt offering. Due to SEC rules restricting publicity in offerings of this kind, we cannot provide more information about the offering, and will therefore be unable to comment or answer your questions on this topic. And now, I'd like to introduce our CEO, Greg Clark. Go ahead, Greg.

Thank you and good afternoon. In my remarks today I will; one, recap our third quarter results; two, update you on the execution of our strategy; three, give you a progress report on our execution since combining Symantec and Blue Coat; four, discuss our confidence in the long-term outlook for Symantec. First, let me give you a quick overview of our execution in the third quarter and the progress we've made during this period. Consistent with our fiscal Q2, we exceeded our third quarter revenue guidance across both consumer and enterprise on a constant currency basis, and also beat our operating margin and EPS guidance. Furthermore, we are seeing evidence that the underlying fundamentals of the business continue to improve. In just two quarters since combining Symantec and Blue Coat, we are making great progress on our product integration and cost efficiency initiatives. From a go-to-market perspective, we are seeing good collaboration in the field and are confident in our fiscal 2017 outlook. Our sales force is performing well and from an integration standpoint we are aligned operationally for a successful start to fiscal 2018. And finally, we expect to close LifeLock acquisition by February 9, and we are pleased with LifeLock's updated outlook filed today. This is an impressive result given the typical distractions that can occur around a transaction and a credit to the strength of their business. Now let me discuss how our Enterprise Security strategy and how it's resonating with customers. The response from customers and our global channel to our integrated cyber defense platform gives us confidence in our market position in both cloud and hybrid cloud. We believe, as an industry, we are in the early innings of a dramatic shake-out among winners and losers within the estimated over $80 billion to be spent…

Thank you, Greg, and good afternoon, everyone. Today I will provide an overview of our third quarter results, give you an update on our progress against our $550 million in cost efficiencies and Blue Coat integration synergies, outline our near-term capital allocation plans related to share repurchases, review our financial outlook for Symantec related to fiscal year 2017 and our fourth quarter fiscal year 2017, and discuss LifeLock and its potential implications to our fourth quarter, incorporating both our expectations for the financial results from the LifeLock business during our period of ownership in Q4, as well as the impact of the transaction financing, neither of which is built into the fiscal year 2017 and Q4 guidance we issued today, given the transaction has not yet closed. In addition to our call today, we have made additional details on our Q3 results and the impact of foreign currency to our guidance available in our CFO commentary, which is posted on our IR website. Our third quarter non-GAAP revenue was $1.088 billion, up 19% on a constant currency basis, which was above our guided range of up 15% to 18%. Since we provided guidance in November, foreign currency had a negative $18 million impact to our non-GAAP revenue of $1.088 billion. We disclosed this impact in our Q3 FY 2017 foreign currency update posted on our IR website on January 12. Excluding the impacts of foreign currency, non-GAAP revenue exceeded the high end of our prior guidance by $16 million. Operationally, we experienced improved revenue performance and beat our prior revenue guidance in both our Consumer and Enterprise Security segments. Non-GAAP operating margin for the third quarter was 30%, 2 points above the high end of our guided range of 27% to 28%, despite the headwind from foreign currency. Foreign currency…

Thank you, Nick. In summary, the new Symantec is positioned to be the leading cybersecurity provider to protect customers for the cloud generation. With the upcoming acquisition of LifeLock, we are delivering the most comprehensive digital safety platform for consumers at a time when the need for an end-to-end offering has never been more acute for families. From a financial perspective, we are on track to gain share and achieve industry leading profitability at scale, which will drive sustainable free cash flow growth. Finally, we are efficiently deploying capital to maximize long-term shareholder value. Operator, we'll now take questions.

Our first question is from the line of Matt Hedberg from RBC Capital.

Hey, guys. Thanks for taking my questions. Greg, I want to start with you. Feedback from the channel on SEP 14 has been positive, and you seem to echo that in some of your prepared remarks, I think at low single digit growth. Can you give a little bit more color on really the value that customers are seeing in SEP versus point products? And maybe if growing pipelines could translate to further acceleration of your endpoint offering.

Yeah, so I think there's a couple points that are definitely massive progress for us. First of all, those two references on third party validation around SEP 14 are meaningful. And AV-TEST test is the sort of benchmark of things to get through an endpoint, and winning that two years in a row for detection prevention is definitely a huge accolade for the business. In addition to that, in SEP 14, the primary technology add there was we added a bunch of the AI machine learning technology to be able to do what some people call signature-less detection, a behavioral analysis, which some of the new entrants into the market on endpoint protection have sort of hung their business on. We are now the leader in effectiveness for artificial intelligence detection methods, and that's coming through very well in the test on SEP 14, which is why you're hearing good things about it in the channel. So we've had a number of situations where we've joined bake-offs in this area and clearly won them and turned those around. I mentioned one in my remarks. Our pipeline is going great, and this has two effects for us. One, we get a lot of new customers as people go and try this out, and we also make sure that we retain a bunch of existing customers, because our footprint in the endpoint in the enterprise is market leading. So all in all, that's going really well. And I think then if you look to the next horizon on endpoint, our endpoint has data protection integration; others don't. That is a massive value proposition to people trying to tackle data loss and other kinds of information protection needs they're having in cloud generation. And now, with the integration of our networking technologies coming…

That's great. Thanks, Greg. And then maybe one more operational question. You talked about the sales force performing well and is aligned for 2018. I'm curious, though, could you provide a little bit more color on some of the changes that will go into effect in 2018 with your integrated sales force?

Yeah. I think that a really good question. When we embarked on the journey of putting Blue Coat and Symantec together, this was one of the things that myself and Mike Fey really lend a lot of time to making sure the sales force still work. So we're now closing the second quarter on beating our guidance, and one of the main things in any sales force is predictability. I think that that's something that we're feeling very good about and that we have taken two large sales forces and we're predictable and it still works. So like I say sort of – that's usually things take a pause at the beginning of two large integrations like that. We have not seen that happen, and so we feel really good about the current state of play. As you can see from Nick's comments on our fourth quarter, we're feeling good about right now. So what happens in 2018 is we are going into a situation where we have a much expanded sales force. Right now we are incenting the Symantec people and the Blue Coat people to work together. In 2018, we have a much wider approach. We've been doing a lot of training to bring the Blue Coat teams up to speed on the Symantec products, and the Symantec products up to speed on the Blue Coat systems. We are optimistic that after that is deployed, that we will see a massive capacity gain in the field, and we have also been doing a lot of work on our channel. And when we get to our Analyst Day that we announced before, we will give you some insights into the simplification of what we're doing in the channels, which we expect to also drive some substantial efficiency gains both for our channel and for us, which should help us drive better results in 2018. So we do have some heavy integration work coming down the pipe in the sales force. We are very experienced at these matters and we've got a lot of training and planning around it. And we feel good about our ability to execute, and we feel very good about the capacity increases we will bring to bear on the market as we get further into 2018.

And our next question comes from the line of Michael Turits, Raymond James. Michael Turits - Raymond James & Associates, Inc.: Great. Thanks very much for taking the question. Greg, I'd like to ask about differentiation in two product areas. First you mentioned CASB quite a bit. It is a competitive field so a differentiation there. And also one of the things that Blue Coat brought to the table was cloud-based delivery system, especially around the proxy. So how important is that and how is your differentiation working there?

It takes a while and thanks for asking a very important question. So the CASB market is a very important one as we kind of move into the cloud generation. And what it does? It allows you to get your defenses back on applications that are running in a cloud property, perhaps somewhere ServiceNow, Salesforce.com, and also allows you to gain control over a set of infrastructure that's not really under the remit of your CIO. It's an essential element the content of CASB as we migrate to cloud, especially in the enterprise context. So we have, I think, really differentiated ourselves. I think the Forrester Research on the current state of CASB really puts us in a highly differentiated space, because we integrated some extremely important pieces. We've taken a very powerful data protection technology from Symantec and integrated it with the CASB solution, and now we have a way better story for what do you do when you find compliance problems in cloud, how do you get it back under control, which is with combination of CASB and data protection come together, very powerful. In addition to that, we've integrated the proxy footprint of the large Blue Coat installed base to be integrated with the CASB, whether it be our cloud-based proxy delivery, our virtual appliances, or our physical appliances. They are all now integrated completely with a full stack of proxies, CASB, and data protection. And we will soon be releasing a multifactor authentication add from Symantec VIP, so we would take care of not just the policy management of these things and data protection, but also the authentication in a multi-application environment. The combination of those things is when a customer currently integrates themselves with their own teams, from three, sometimes four vendors stitching that together. And we've come to market and say, you don't have to do that anymore. You can buy that from us, integrated, warranted, supported, delivered globally, and delivered under one SLA. So we believe that this differentiation is important. And since we last spoke, we have even delivered a CASB deal in the multiple millions size at a single customer protecting a single one set of applications, which really I think is a testament to the value of this market. We feel very good about our ability to help our enterprise customers get into the cloud generation and maintain their defense in-depth, while they do that. This topic is paramount in my discussion. Is that helpful, Michael? Michael Turits - Raymond James & Associates, Inc.: It is. If I could get one quick follow-up. A lot of that is additional. There's a lot of incremental to Symantec from what is coming with Blue Coat. How are you getting the sales force to take that incremental Blue Coat capability and re-enter into discussions with the Symantec existing customers?

So I think Symantec and Blue Coat in product management in the field already had a shared vision here. Like the Blue Coat network technology and the Symantec data protection technology been integrated in the market for a long time, and do well together inside customer accounts. Then we came along and brought CASB to it for the stuff that's outside the firewall and the cloud, and that was a natural fit. And then most people were trying to figure out how to do single sign on a multifactor authentication across 50 cloud apps. We had that solution. So taking these pieces and putting them together in our field was extremely easy to do. This was something where people were hoping we were going to do that, thought we were going to do that, and when we reaffirmed that in our product roadmaps, they were very excited at the customer cold base (47:39).

And our next question is from the line of Andrew Nowinski from Piper Jaffray. Andrew James Nowinski - Piper Jaffray & Co.: Thanks. Congrats on the great quarter and the guidance for Q4, especially in light of the currency fluctuations. So I just want to ask a couple questions on the Consumer segment. So first your Consumer revenue growth on a constant currency basis came in better than guidance, and Q4 was also better than expected. I guess, can you just provide more detail on the trends you're seeing broadly in Consumer?

Yeah. So I think in Consumer, there's a couple things that are really noteworthy. We came to market with the announcement of Norton Core at the CES show in Las Vegas, and we had some comments in our prepared remarks on that. I encourage everyone to go and take a look at those. That launch was extremely well received both at the show and even in our telecom service provider customer base extremely powerful interest in bringing that to market, especially what's been going on in IoT in the home and protecting the family and protecting our customers across multiple channels, whether it be PC, Mac, Android or iOS. And so we have a very strong story there. We've also launched our Wi-Fi protection for when you're a consumer and you're roaming around, protect you on all the various Wi-Fi infrastructure that you attach to, which is a dangerous place for malware. And when we put it all together and bringing LifeLock to the story, we have now got a digital safety proposition for consumers, their family, and the total end-to-end cyber defense and identity protection problems that they have. This includes things like next-gen parental controls, where it's not about just blocking inappropriate content. It's about face time, screen time, time of day, and even turning off the applications so that everyone comes to dinner and puts down their cellphone. This is really center of mind for consumers. It's been- we have been testing this with our focus groups. We do a lot of focus group testing, and we are very bullish about our ability to increase our consumer revenues from this value proposition. And also as people refresh their PC footprint to be able to not have to work too hard to keep them across that refresh through this value proposition, which is extremely powerful in really bringing our malware protection revenues back to growth. So we think that we – as we announced at the LifeLock acquisition, that we can do that in an accelerated fashion and we are bullish about the future of our consumer business. We're also encouraged by the results that LifeLock announced today. That was a strong result considering an acquisition at the same time. Andrew James Nowinski - Piper Jaffray & Co.: Okay. Got it. And then just as a follow-up on your comments on Norton Core. What are your go-to-market strategies for that product? Since most consumers typically buy their home router from a store like Best Buy or they rent it through a cable MSO.

So we've – a lot of these consumer electronics stores carry Norton already, and we've had extremely good feedback globally from those channels, whether it be in Japan or Germany or the U.K. or here in the U.S. So we're very excited about the consumer channels that we use and the interest in Norton Core from them. And then in addition to that, as I mentioned, we have a strong go-to-market partnership inside global telecom for our Norton products, and that is a natural fit to where we put in not only hardware solutions, but also we combine our technology with existing hardware solutions that are already being deployed by some of these broadband providers. So we feel good about really extending our brand. We have real tech here, and we've got a very strong presence from the networking side of Blue Coat in these telecom providers already, and we feel good about being able to really go after that sort of consumer broadband user in the home. Two routes, people that will pick up a powerful piece of technology and bring it home, and also getting it through the service provider themselves.

And our next question is from the line of Keith Weiss from Morgan Stanley. Keith Eric Weiss - Morgan Stanley & Co. LLC: Excellent. Nice quarter, guys, and thank you for taking the questions. Greg, I was hoping to dig into LifeLock a little bit more, now that we're little bit closer to the close. You gave us some bones in terms of sort of understanding the upsell framework with core Norton. You talked about sort of the higher value of an identity protection consumer. I was wondering if you could maybe put a little bit of meat on those bones in terms of what we're thinking about in terms of how big is the opportunity within the current Norton base? Is there a lot of overlap? If you can give some kind of dimensions around that potential upsell opportunity, that would be helpful.

That's definitely a really good question, Keith. Thanks for asking it. So we did a lot of work prior to signing the merger with LifeLock around the analysis of our cohort in North America that are solid Norton customers, very strong brand recognition, been with us a long time. What we liked about that was a lot of the people that really get value from LifeLock are people that are further on in their career and they have lot of assets. They've got home loans, car insurance, multiple credit cards, and that cohort is a very nice mix between what we have in the Norton renewal base and the overlap with LifeLock is in the teens as a percentage. So we feel really good about, as we renew those, that cohort being able to bring the identity protection and the digital safety value proposition to them. This is something we tested prior to the deal, and we liked the results from the test. We continue to test and continue to do some surveys and whatnot. I mean, we continue to feel better about those results. Is that helpful? Keith Eric Weiss - Morgan Stanley & Co. LLC: Yes. Thank you. And maybe one for Nick as well. Just to confirm, when we're thinking about the FY 2018 guidance, it still doesn't include LifeLock in that, number one. And number two, when we're thinking about the currency impacts, can you help us quantify what potential impact the currency had on that $1.75 to $1.80?

Yeah. So hey, Keith. So a couple of things, as we look at the overall. First let me talk about FY 2018. So, remember, when we talked last quarter, we talked about absorbing about $0.10 in FY 2018 around share count. In December, what we did was we said, okay, we're looking at LifeLock, we're looking at our acquisition models with LifeLock, and we're incorporating that in the $1.70 to $1.80. Okay. That incorporates the business, but also the debt around the business. Now we're talking about also we've got additional shares and FX volatility that we have to build in. So when we reiterate the range, they're building in all of those topics. So the one thing probably on the script that let me make sure is clear. So what we're saying about LifeLock for the script is, it's not built into our Q4 and FY 2017 guidance, because it's not closed yet. We gave you the view of – assuming the February 9 ratable revenue recognition, there's not a lot of – because there's a lot of monthly maintenance, et cetera, we'll be able to get through that valuation in terms of what the haircuts are, et cetera. So that was the – let's keep in mind, there could be $0.01 of dilution around LifeLock for the quarter FY 2017 and for the year FY 2017. But the $1.70 to $1.80 incorporated our acquisition model. Now when we come back in May, we're going to come back and talk about operations of the business, the Symantec/Blue Coat combination business, which we feel very good about. We're going to talk about LifeLock, now that we own it and we understand all the pieces. We're going to talk about the debt on LifeLock and what it's going to cost us, because that we will, obviously, have it done. We'll talk about share count and our perspectives and estimates on share count, because we have to think about the implications of the convertibles, which is on the IR website, but I think it's important in terms of how share count can be volatile, and we'll talk about FX. So we've got a bunch of topics we're going to talk about at that point in time, but we wanted to give you a perspective on the $1.70 to $1.80 today. And then your point on FX, let me just make sure I answer that point for the fourth quarter. There's about $30 million of headwind of foreign exchange in revenue in the fourth quarter. So – and then for the year FY 2017, it's in the mid-40s of headwind to revenue. So I think when we look at our overall guidance for the year FY 2017 and when we look at that revenue, where if you look at the midpoint versus before this call, we have increased it, the margins we have increased, we took the entire EPS range up, we feel pretty good about where we're at.

And our next question is from the line of Shaul Eyal from Oppenheimer. Shaul Eyal - Oppenheimer & Co., Inc.: Thank you. Hi. Good afternoon, guys. Thanks for squeezing me in. Greg, a few weeks back a major network breach was discovered in Saudi Arabia, and I believe Symantec played an important role in discovering and flagging it. Can you talk to us about the breach scope, as well as what products or services were deployed by Symantec in this specification? And maybe in that context, can you just also talk to us in general terms, of course, about Symantec's presence in the federal vertical? Thanks.

So, Shaul, it's a good question. So just as a matter of policy as a cyber defense vendor, we never give product details in any account, because that's not a good thing for the adversaries to sometimes know that. So as proud as we are about some of our recent things that we did, it's difficult for us to talk about it. But I wanted to say a few things. If you go and take a look at some press releases, we noticed from our threat telemetry, which is one of the biggest competitive advantages our company has against others, we had seen the instances – the instance of some very powerful nation state malware coming back slightly morphed late last year. And we reported on that and we told everybody to kind of button up and be careful, because this stuff is not good for you. And then there was a report came out a couple of weeks ago that it was back and it had shut down substantial infrastructure in Saudi, and that's something that was reported by the media. And then following that, later in the week, one of those companies tweeted and took an interview with some media thanking Symantec for fixing it for them, just a few days later. What went down between that happening and that tweet coming out was something we're very proud of. We never asked the customer to do it. It was just them thanking us, and we helped them put that back together. So that is a massive capability that we have in terms of being able to detect, then also being able to cure these kind of problems. And so I think that's something that if you take a look at the cyber investments that those organizations have, they are massive and they have a lot of heavy stuff in there to protect them from cyber issues like this. And I just would like the audience to know that we are a prime ally in the fight against nation state malware and very capable there. Then in the federal government, similarly to the comment about commercial accounts, we don't like to talk about the kind of products, where, what and when. But we have always had on both the Blue Coat and Symantec side a very strong relationship with all the five eye (01:01:03) governments because we are a very important laboratory in the defense against malware in general, and we have substantial installations all over the world in governments and defense organizations. Shaul Eyal - Oppenheimer & Co., Inc.: Thank you so much.

Thank you, Shaul. Good question.

Thank you for joining us today. That's it for – time for our question and answers. If any follow-ups, please e-mail or call Investor Relations. Thank you.

Thanks very much, everyone.

Ladies and gentlemen, this does conclude today's conference. We thank you for your participation. You may now disconnect.