By John Letzing, MarketWatch
SAN FRANCISCO (MarketWatch) -- McAfee Inc. on Thursday posted a first-quarter profit that topped Wall Street's expectations, as sales of its security software jumped 21% compared to the same period last year.
Santa Clara, Calif.-based McAfee also issued a surprisingly strong profit outlook for the current quarter, helping send its shares slightly higher to $37.70 in late trading.
McAfee said its first-quarter net income rose to $51.8 million, or 34 cents a share, from $30.2 million, or 18 cents a share in the same period a year earlier. Revenue for the period ended in March rose to $448 million from $369.6 million. Excluding special items, McAfee said earnings for the quarter were 57 cents a share.
Chart of MFE
Analysts on average had been estimating McAfee would post earnings excluding special items of 48 cents a share, on $448.5 million in revenue, according to data from Thomson Reuters.
McAfee's results "Reflected record quarterly revenue... and our continued focus on improving profitability and operating cash flow," McAfee Chief Executive Dave DeWalt said in a statement.
McAfee said its profit result benefited by 3 cents a share from "an insurance reimbursement" related to past litigation, and was diluted by 2 cents a share stemming from its acquisition of Secure Computing.
The company said its sales to businesses rose 28% in the first quarter, while its consumer business saw sales grow 12%.
For its current, second quarter, McAfee said it expects earnings excluding special items to be between 54 and 58 cents a share, and revenue to be between $455 million and $475 million.
Analysts have been estimating McAfee would post second-quarter earnings excluding special items of 54 cents a share, and $466 million in revenue, according to Thomson Reuters.
This clearly states that Mcafee has its increasing earnings.....
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