McAfee’s 2Q financial performance tops analyst views amid rising demand for computer security

McAfee 2Q profit slides 40 pct, tops analyst views

SANTA CLARA, Calif. — McAfee Inc.’s second-quarter financial performance exceeded analyst expectations amid rising demand for the software maker’s computer security products.

The Santa Clara-based company said Thursday that it earned $28.7 million, or 18 cents per share, for the three months ended in June. That was a 40 percent decline from income of $47.8 million, or 30 cents per share, at the same time last year.

If not for accounting charges unrelated to its daily operations, McAfee said it would have made 60 cents per share. On that basis, the company topped the average analyst estimate of 57 cents per share among analysts surveyed by Thomson Reuters.

Revenue in the period surged 18 percent to $468.7 million — about $2 million above analyst expectations. Unfavorable currency conversions cost McAfee $22 million in revenue during the quarter.

The demand for McAfee’s protection against computer viruses and other security threats was strongest in North America, where second-quarter sales rose 30 percent to $265 million.

Management predicted McAfee’s third-quarter earnings will range from 58 cents to 62 cents per share, excluding certain accounting items. The average analyst estimate had been 59 cents per share.

McAfee expects third-quarter revenue of $475 million to $495 million. Analysts had forecast revenue of $478 million.

The second-quarter showing or outlook evidently weren’t enough to keep investors happy. McAfee shares slid 31 cents in extended trading after finishing the regular session at $42.56, down $2.08, or 4.7 percent.

Separately, the company also said it’s buying e-mail provider MX Logic for $140 million. The sales price could rise by another $30 million if MX Logic hits certain financial targets.