DOW JONES NEWSWIRES
McAfee Inc.'s (MFE) second-quarter profit jumped 38% as the
antivirus-software maker posted strong revenue growth in North
America, although margins fell slightly.
The company, which reported mixed results compared to its weak
April estimates, sees third-quarter earnings of 62 cents to 66
cents a share on revenue of $505 million to $520 million. Analysts
surveyed by Thomson Reuters projected 64 cents and $523 million,
respectively.
The company's portfolio and acquisitions of smaller companies
mostly helped it fend off the worst of the gloom last year. In May,
it agreed to acquire privately owned Trust Digital, a
security-software company, as McAfee looks to cash in on the
exploding mobile-phone market.
Meanwhile, earlier this month, the company released its first
security products for consumers who use Apple Inc.'s (AAPL)
Macintosh computers. Macs have been less inviting as virus targets
than personal computers that use Microsoft Corp.'s (MSFT) Windows
software, but that could change as usage grows.
McAfee posted a profit of $39.4 million, or 25 cents a share, up
from $28.7 million, or 18 cents a share, a year earlier. Excluding
stock-based compensation and other costs, earnings climbed to 63
cents a share from 60 cents.
Revenue grew 4.4% to $489.2 million, as it climbed 8% in North
America. Internationally, revenue was flat, but up 2% in constant
currency terms.
In April, McAfee projected a profit of 58 cents to 62 cents a
share on revenue of $500 million to $520 million, a view that
missed Wall Street's then expectations.
Gross margin narrowed to 73.3% from 75.4% as costs grew.
During the quarter, McAfee closed 30 deals worth more than $1
million each, compared with 28 a year earlier.
Shares rose 0.4% to $30.36 in after-hours trading. At the close,
stock is down 25% this year.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com