McAfee acquires MX Logic, Delivers solid third quarter outlook

Summary:McAfee on Thursday acquired MX Logic, which provides on-demand email, continuity and Web services, for $140 million.The move is designed to bolster McAfee's security as a service lineup.

McAfee on Thursday acquired MX Logic, which provides on-demand email, continuity and Web services, for $140 million.

The move is designed to bolster McAfee's security as a service lineup. Security software vendors have been racing to the cloud. MX Logic has 40,000 customers who cover more than 4 million end users. McAfee said that it plans to cross-sell MX Logic with its Web services such as the Total Protection Service (statement).

Separately, McAfee topped second quarter estimates and delivered a better-than-expected third quarter outlook (statement).

The company reported second quarter net income of $28.7 million, or 18 cents a share, down from $47.8 million, or 30 cents a share, a year ago. Non-GAAP earnings in the second quarter were 60 cents a share, three cents better than expectations. Second quarter revenue of $468.7 million was up 18 percent from a year ago.

McAfee said that its enterprise revenue was up 21 percent in the second quarter to $291 million. The company also closed 424 deals worth more than $100,000 and 57 deals worth more than $500,000 and 28 worth more than $1 million. That tally indicates that McAfee may be putting pressure on Symantec, which reported disappointing enterprise results.

In McAfee's consumer business second quarter revenue was up 13 percent to $177 million.

As for the outlook, McAfee said third quarter revenue will be between $475 million and $495 million. Non-GAAP earnings will be 58 cents a share to 62 cents a share. Wall Street was expecting non-GAAP earnings of 59 cents a share on revenue of $477.7 million.

Topics: Banking

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Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

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