DOW JONES NEWSWIRES
McAfee Inc.'s (MFE) fourth-quarter net income more than tripled
as revenue increased amid double-digit growth in its corporate and
consumer segments.
The antivirus software maker's first-quarter revenue view topped
analysts' expectations, and its earnings expectations were in line
with estimates, as spending on security and data-management tools
has held up reasonably well despite a slowdown in
information-technology spending.
McAfee reported net income of $45.4 million, or 29 cents a
share, up from $12.2 million, or 7 cents a share, a year earlier.
Excluding stock-based compensation and the amortization of
intangibles, earnings rose to 53 cents from 46 cents a share.
Revenue increased 19% to $424 million.
In October, the company projected earnings of 50 cents to 56
cents on revenue of $400 million to $420 million.
Gross margin fell to 75.2% from 75.8%.
Revenue increased 16% in the consumer segment, while the
corporate segment grew 21%.
Revenue rose 25% and 12% for North America and international
regions, respectively.
Looking ahead, the company expects first-quarter per-share
earnings of 46 cents to 50 cents on revenue of $440 million to $460
million. Analysts polled by Thomson Reuters projected 50 cents and
$424 million, respectively.
McAfee, which was added to the S&P 500 in December, has been
purchasing smaller companies, especially those whose stocks have
tumbled amid the broad market selloff. Analysts believe its strong
product portfolio and business deals will help the company fend off
the worst of the gloom in 2009.
Rival Symantec Corp. (SYMC) last month topped sales estimates
but said it still swung to a net loss for its fiscal third quarter
as it took a $7 billion goodwill impairment charge.
McAfee shares rose 2.4% to $30.90 in after-hours trading. The
company's stock has lost about a quarter of its value from
September.
-By John Kell, Dow Jones Newswires; 201-938-5285;
john.kell@dowjones.com