McAfee Posts Higher 3Q Earnings, Upgrades Outlook

Quarterly net income was $118 million, or 70 cents per share, up from $10.8 million, or 7 cents per share, in the year-ago period. This year's third quarter included a gain of $189 million on the sale of assets from its Sniffer network management technology business.

After the gain and other one-time items, the company posted earnings for the third quarter of $31 million, or 18 cents per share. Revenue was $221.6 million, down from $227.8 million.

Analysts surveyed by Thomson First Call expected earnings of 12 cents per share on revenue of $198.7 million. Shares of McAfee closed down 6 cents to $23.36 -- but jumped $2.15, or 9.2 percent, to $25.51 in after-hours trading on the New York Stock Exchange.

"Our overall performance was very strong in the third quarter and was driven by growth in consumer and IntruShield software," said George Samenuk, chairman and chief executive in a statement.

Looking forward, the company raised its fourth-quarter revenue guidance to a range of $218 million and $222 million. The company expects to earn 21 cents per share.

Analysts expect earnings of 21 cents on revenue of $205.4 million during the fourth quarter.

The company also raised its full-year 2005 revenue guidance to between $820 million and $850 million, with earnings of $1.05 at the middle of the range. Analysts are expecting revenue of $847 million.

Copyright © 2004 The Associated Press. All rights reserved. The information contained in the AP News report may not be published, broadcast, rewritten or redistributed without the prior written authority of The Associated Press.