Cost-Cutting Boosts NAIs Earnings in Q1

By Dennis Fisher  |  Posted 2004-04-27 Print this article Print

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 unit—which includes the lions share of the companys products—grew 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.
For insights on security coverage around the Web, check out Security Center Editor Larry Seltzers Weblog. 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. Check out eWEEK.coms Security Center at for security news, views and analysis. Be sure to add our security news feed to your RSS newsreader or My Yahoo page:  

Submit a Comment

Loading Comments...
Manage your Newsletters: Login   Register My Newsletters

Rocket Fuel