McAfee 3Q Net Climbs 27% As Revenue Increases; View Cautious

  DOW JONES NEWSWIRES 
 

McAfee Inc.'s (MFE) third-quarter earnings rose 27%, beating its own forecasts, as the antivirus software maker saw revenue strength, especially in North America.

The company also said it expects fourth-quarter earnings of 67 cents to 71 cents a share on revenue of $530 million to $550 million. Analysts surveyed by Thomson Reuters expected 70 cents a share on $550 million revenue.

"Our revenue growth was the result of broad-based demand for our security solutions portfolio across our corporate and consumer segments," said President and Chief Executive Dave DeWalt about the latest quarter.

The antivirus giant is in the process of being bought by tech behemoth Intel Corp. (INTC), which announced the deal in August to buy McAfee for $7.68 billion as it moves into the software sector to support its expansion outside of the PC market. McAfee has seen strong revenue growth in North America, although margins have fallen slightly.

McAfee reported a profit of $46.6 million, or 30 cents a share, up from $36.8 million, or 23 cents, a year earlier. Excluding items such as stock-based compensation and acquisition-related charges, earnings rose to 67 cents from 62 cents.

Revenue rose 7.8% to $523 million, climbing 14% in North America. It fell 0.4% abroad.

The company had projected earnings of 62 cents to 66 cents on revenue of $505 million to $520 million.

Operating margin jumped to 12.2% from 8.8% as revenue outpaced cost increases.

Shares closed at $47.33 and were inactive in after-hours trading. The stock has risen 17% this year.

-By Nathan Becker, Dow Jones Newswires; 212-416-2855; [e-mail];