2nd UPDATE: McAfee To Buy Privately Held Trust Digital
May 25 2010 - 5:03PM
Dow Jones News
Looking to cash in on the technology trends of virtualization
and "consumerization," McAfee Inc. (MFE) announced one acquisition
and the timing for a new product Tuesday during its Investor Forum
2010 in New York.
The computer security firm said it plans to buy privately owned
Trust Digital, a security-software company that specializes in
mobile security. The deal is expected to close by June 30.
Financial terms of the purchase were not released.
The Santa Clara, Calif.-based company also said that a new
product for virtual desktops, which it is developing with help from
Citrix Systems Inc. (CTXS), will be available in the second half of
this year.
McAfee Chief Technology Officer George Kurtz said the Trust
Digital acquisition will help McAfee benefit from the technology
"consumerization" trend, by which more and more employees are
bringing personal technologies--such as Facebook and iPhones--into
the office. "IT can no longer say 'No' when you want to bring a
device" such as an iPad onto the corporate network, said Chief
Technology Officer George Kurtz.
"With Trust Digital, we have the ability to identify mobile
devices and to lock those devices," Kurtz continued. For example,
if a phone tries to access a WiFi network for which it doesn't have
protection, Trust Digital can block the phone's access to that
network.
Additionally, the acquisition may help McAfee cash in on the
exploding mobile-phone market. According to research firm Gartner
Inc., consumers bought 54.3 million smartphones in the first
quarter of 2010, up nearly 50% from the first quarter of 2009.
McAfee also said that its McAfee Optimized Virtual Environment
Platform, or MOVE--developed in partnership with Citrix--will be
available in the second half of this year.
Quoting statistics from Enterprise Strategy Group, a Citrix
executive said that 21% of enterprises are implementing virtual
desktops while 31% of enterprises are considering doing the same.
The joint product from the two companies will target those
enterprises, letting them deploy security for virtual desktops in a
centralized and uniform manner.
Chief Executive and President David DeWalt said it now expects
an additional penny or two hit from currency exchange rates on its
previous second-quarter guidance of non-GAAP EPS of 58 to 62 cents,
on revenue of $500 million to $520 million.
DeWalt and other executives discussed things the firm is doing
to--such as simplifying its enterprise price list so that more
deals can close in a quarter--to address the fact that McAfee's
share price is down, even though its revenue is up.
Company revenue has increased 70% over the past three years, for
example, said Kurtz. Meanwhile, McAfee shares are down more than
17% from a year ago. "We feel that we're undervalued in the
market," DeWalt said in response to an analyst question.
McAfee stock closed up nearly 1% Tuesday to $32.24
-By Jeanette Borzo, Dow Jones Newswires; 415 765 8230;
jeanette.borzo@dowjones.com
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