NAI Posts Loss, Lowers Revenue Outlook
Network Associates Inc.'s recent roller-coaster ride continued Thursday when it announced a net loss of $3.7 million for the first quarter and slashed its earnings outlook for the full year.Network Associates Inc.s recent roller-coaster ride continued Thursday when it announced a net loss of $3.7 million for the first quarter and slashed its earnings outlook for the full year. The company now expects to see revenue of $930 million to $950 million for all of 2003, as compared with analysts expectations of $1.01 billion. NAI delivered revenue of $215 million in the quarter, down from $220 million in the same year-ago period. The company had a net loss of $0.02 per share after earning $0.11 per share in the first quarter of 2002. The disappointing earnings news comes close on the heels of the companys announcement that it would have to restate earnings for 1998, 1999 and 2000. NAI is also under investigation by both the Department of Justice and the Securities and Exchange Commission over the way that the company accounted for revenue in the late 1990s.
At the same time, the Santa Clara, Calif., company has continued to invest in new technologies, spending a combined $220 million in the last two weeks to acquire IntruVert Networks Inc. and Entercept Security Technologies. Both companies make intrusion-prevention products, a segment of the market that is growing quickly and gaining quite a bit of attention.
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