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BOSTON - McAfee said its quarterly profit rose 57 per cent on higher sales of its computer security software to consumers, according to preliminary figures.
But it expects to take between US$100 ($129) million and US$150 ($193.77) million in noncash charges related to errors it made in accounting for past stock option grants over the course of a decade. The charges are not included in the earnings.
Auditors are still reviewing McAfee's books to determine the financial impact of restatements, said the world's No. 2 maker of computer security software.
McAfee's profits are growing as customers have embraced its suites of security software that handle multiple tasks and sell for a higher price than individual titles that deal with only one particular security issue such as virus protection or spyware.
"They have a pretty strong product cycle," said Friedman, Billings, Ramsey Group analyst Daniel Ives.
Second-quarter net income rose to US$49.4 million, or US30 cents per share, from US$31.36 million, or US19 cents per share, a year ago.
Revenue rose to US$314 ($405.63) million from US$277.4 ($358.35) million.
Corporate sales rose 9 per cent to US$182 ($235) million, driven primarily by the company's line of Total Protection software suites. It signed 11 contracts worth more than US$1 million, the largest number of mega-deals in five years.
Consumer sales climbed 19 per cent from the prior year to US$132 million. Its top sellers are bundled products - internet Security Suite, VirusScan Plus, Total Protection and PC Protection Plus.
The company also said it expects to post third-quarter per-share profit excluding items of 36 cents to 41 cents on revenue of US$305 million to US$325 ($419) million.
Analysts expected it to report profit of 39 cents on revenue of US$315.5 ($407.57) million for the third-quarter, according to Reuters Estimates.
It said it expected to report full-year per-share profit excluding items of US$1.61 to US$1.71 on revenue of US$1.26 billion to US$1.3 billion.
Analysts expected it to report profit of US$1.61 per share on revenue of US$1.27 billion, according to Reuters Estimates.
Shares in the Santa Clara, California company were quoted at US$34.25 in extended trading, down from their close of US$34.85 on the New York Stock Exchange.
- REUTERS
