Symantec Shunts CEO Steve Bennett, Names Michael Brown Interim Head - Update

(RTTNews) - Security software maker Symantec Corp (SYMC) Wednesday shunted out its Chief Executive Officer Steve Bennett and named Michael Brown as interim president and CEO.

The company did not divulge any reason for the removal of Bennett but said its priority is to find a leader who can drive propel innovation and growth at the company.

The announcement sent Symantec shares tumbling 9 percent in after-hours trade on the Nasdaq.

In a statement, Symantec said the exit of Bennett follows an ongoing deliberative process and was not due to any event or impropriety. Bennett also resigned from the Symantec board.

Symantec said a special committee of the board will begin the search for a permanent CEO.

Incoming CEO Brown joined the Symantec board after its merger with Veritas Software in July 2005.

Earlier Brown served as chairman and CEO of Quantum Corp and more recently has been a board chairman and CEO coach for technology firms prior to their acquisitions, including EqualLogic and Echo Nest.

Brown also will remain on the Symantec board, but will cease to serve on its Compensation and Leadership Development Committee or Nominating and Governance Committee.

Symantec reaffirmed its guidance for the fourth quarter, projecting net earnings of $0.29 to $0.31 per share, adjusted earnings of $0.40 to $0.42 per share and revenue of $1.615 billion to $1.655 billion.

Analysts polled by Thomson Reuters expect earnings of $0.42 per share on revenue of $1.64 billion for the quarter.

Symantec, which makes Norton anti-virus software, has laid off workers and streamlined its business to soften the impact of weak PC sales that have impacted demand for its anti-virus software. The company has been battling with falling sales for the past quarters.

Earlier this month Symantec named Thomas Seifert as chief financial officer. Seifert was previously the CFO at Brightstar and AMD (AMD).

Symantec stock closed Thursday at $20.91, up $0.33 or 1.58%, on a volume of 5.5 million shares on the Nasdaq. In after hours, the stock $1.91 or 9.11% at $19.00. In the past year, the stock has traded in the range of $20.01 - $27.10.