DOW JONES NEWSWIRES
McAfee Inc.'s (MFE) fourth-quarter earnings rose 11% as revenue
growth in North America continued to offset sliding margins and as
the antivirus software maker prepares for its acquisition by Intel
Corp. (INTC) to close in the current quarter.
McAfee has had strong revenue growth in North America, though
margins have been a concern. Intel agreed to buy McAfee in August
for $7.68 billion. Intel is moving into the software sector to
support its expansion outside of the PC market.
The European Commission cleared the deal last month after Intel
resolved antitrust concerns by pledging to ensure the
interoperability of McAfee's products with those of competitors.
The U.S. Federal Trade Commission had already given its stamp of
approval last year.
McAfee reported a profit of $60.6 million, or 38 cents a share,
compared with $54.5 million, or 34 cents, a year earlier. Excluding
items such as stock-based compensation and acquisition-related
charges, earnings rose to 67 cents a share from 64 cents and
included an extra 2 cents for foreign exchange and pre-merger
investments that weren't included in its prior guidance. Revenue
rose 4.5% to $549.6 million, climbing 4.3% in North America and
4.9% abroad.
The company had projected in October earnings of 67 cents to 71
cents on revenue of $530 million to $550 million.
Gross margin slipped to 72.3% from 75%.
McAfee shares were unchanged at $47.90 in early trading, while
Intel shares were down 1% at $21.50.
-By Lauren Pollock, Dow Jones Newswires; 212-416-2356;
lauren.pollock@dowjones.com