McAfee Inc.'s (MFE) third-quarter profit fell 25% on higher
costs, which affected margins, as the antivirus-software maker
posted higher worldwide revenue.
The company also projected fourth-quarter earnings of 61 cents
to 65 cents a share on revenue of $505 million to $525 million.
Analysts polled by Thomson Reuters expected 63 cents and $507
million, respectively.
Shares fell 2.9% to $42.60 in after-hours trading as the
quarter's results were also merely in line with expectations. At
the close, the stock was up 27% this year.
McAfee has been buying up smaller companies recently, including
its recent acquisition of MX Logic Inc., a provider of cloud-based
e-mail and Web security. McAfee's product portfolio and business
deals have mostly helped it fend off the worst of the gloom of
2009, although it isn't immune to the information-technology
spending slowdown.
McAfee posted earnings of $36.8 million, or 23 cents a share,
down from $48.8 million, or 31 cents a share, a year earlier.
Excluding stock-compensation and acquisition costs, earnings rose
to 62 cents from 53 cents.
Revenue jumped 18% to $485.3 million amid a 25% increase in
North America. International revenue grew 11%.
In July, the company projected earnings of 58 cents to 62 cents
on revenue of $475 million to $495 million.
Gross margin fell to 73.9% from 76%.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com