McAfee profit jumps
McAfee, the second-biggest maker of security software, reported a 77 percent rise in first- quarter profit after customers renewed subscriptions and added programs that safeguard data.
Net income climbed to $53.5 million, or 34 cents a share, the Santa Clara company said today in a statement. Excluding acquisition costs and other expenses, profit was 57 cents a share, beating the 49-cent average estimate of analysts in a Bloomberg survey.
Security software is proving resilient to a broader slump in technology spending because of a constant threat from hackers and viruses. Chief Executive Officer Dave DeWalt also is seeking new customers by signing deals with personal-computer makers and Internet services, which offer trial versions of McAfee's programs. "The profitability speaks to a company that is navigating through the storm as well as investors can expect," said Daniel Ives, an analyst with Friedman Billings Ramsey & Co. in New York. He doesn't own the shares, which he expects to perform in line with the market. "Their strategy of creating partnerships on the PC front has been a key tenet in their ability to further penetrate the consumer market."
