Gen Digital Inc. reported its financial results for the three and six months ended September 27, 2024, showing notable improvements in revenue and profitability compared to the same periods in the previous fiscal year.
For the three months ended September 27, 2024, net revenues reached $974 million, a 3% increase from $945 million in the same quarter of 2023. The six-month revenue also increased by 3%, totaling $1,939 million compared to $1,888 million in the prior year. This growth was primarily driven by higher sales in consumer security and identity protection products, which saw increases of $14 million and $19 million, respectively, while legacy product offerings experienced a decline.
Gross profit for the three months ended September 27, 2024, was $780 million, up from $765 million year-over-year. Operating income surged to $402 million from just $22 million in the same quarter of 2023, reflecting a significant operational turnaround. For the six-month period, operating income rose to $819 million from $381 million in the previous year. Net income for the three months was $161 million, compared to $147 million in the prior year, while for the six months, net income increased to $342 million from $334 million.
The company’s cash and cash equivalents decreased to $737 million as of September 27, 2024, down from $846 million at the end of March 2024, primarily due to stock repurchases and cash interest payments. The total current liabilities increased significantly to $3,822 million from $2,726 million, reflecting changes in operational financing.
Strategically, Gen Digital has been implementing a restructuring plan initiated after the acquisition of Avast, with total expected costs of up to $150 million. As of September 27, 2024, the company incurred $126 million in costs related to this plan, which includes workforce reductions and facility closures. The restructuring is expected to be completed by the end of fiscal 2025.
Additionally, the company has been active in stock repurchases, having repurchased 11 million shares for $272 million during the six months ended September 27, 2024, compared to 3 million shares for $41 million in the same period of the previous year.
The company also faced litigation challenges, including a significant patent infringement case resulting in an estimated loss of approximately $591 million, which has been accrued as part of long-term liabilities.
Overall, Gen Digital's financial performance reflects a positive trajectory in revenue growth and profitability, alongside ongoing strategic adjustments following its acquisition activities.
About Gen Digital Inc.
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