UPDATE:McAfee 4Q Net Triples Amid Growing Revenue;Sees Strong 1Q
12 Fevereiro 2009 - 10:00PM
Dow Jones News
McAfee Inc.'s (MFE) fourth-quarter net income more than tripled
as revenue increased amid double-digit growth in its corporate and
consumer segments, showing that security software spending is
holding up better than some parts of information-technology
industry.
The Santa Clara, Ca.-based antivirus software maker's results
and its first-quarter earnings view, which topped revenue
expectations, Thursday helped send shares up almost 3% in after
market trading.
On an upbeat call with investors after the results were posted,
executives said they were benefiting from a five-fold growth in the
creation of viruses and computer threats during 2008. Executives
said a number of deals struck over the past two years with computer
manufacturers such as Lenovo and Acer and telecoms companies to
bundle McAfee's products had also helped the company increase
market share.
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.
Chief Executive Officer Dave DeWalt and Chief Financial Officer
Rocky Pimentel said on a conference call with reporters that the
company hadn't had to discount or lower prices on its software
products to close deals in the fourth quarter. Looking to the first
quarter of 2009, the company expects double-digit revenue growth in
all its business segments.
Nevertheless, the company is putting in place some cost-saving
measures such as freezing hiring and company salaries and
restricting travel, which Pimentel said was expected to save around
$50 million in costs in 2009.
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 sell-off. 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 2.9% to $31.02 in after-hours trading. The
company's stock has lost about a quarter of its value from
September, amid a broad sell-off in IT stocks.
-By John Kell, Dow Jones Newswires; 201-938-5285;
john.kell@dowjones.com
-By Jessica Hodgson, Dow Jones Newswires; 415 439 6455,
jessica.hodgson@dowjones.com