The company announces earnings of 32 cents per share following news that it will sell its Sniffer unit and change its name to McAfee.
Network Associates Inc. on Tuesday announced earnings of 32 cents per share on revenue of $217 million for the first quarter. Although revenue was down slightly from $219 million in the first quarter of 2003, a reduction in costs boosted earnings sharply from 8 cents per share.
Bookings in the McAfee Security unitwhich includes the lions share of the companys productsgrew 32 percent, and revenue was up 11 percent in the quarter.
The company announced last week that it plans to sell its Sniffer Technologies network management unit and change its name
to McAfee Inc.
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NAI officials said they expect the companys revenue to be about $200 million for the second quarter, with earnings in the range of 4 cents to 6 cents per share. The pending sale of Sniffer means that the division wont generate much revenue for the company in the second quarter, officials said.
"We believe there will be very few Sniffer sales in the second quarter," said George Samenuk, CEO of Santa Clara, Calif.-based NAI.
The company also discussed its plan for reducing costs and streamlining its business. One piece of the plan involves consolidating the companys customer support and service organizations. This will include reducing the number of support locations to four from 10.
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