McAfee acquires tenCube; Second quarter mixed bag

Summary:A day after Symantec's earnings bombed, smaller rival McAfee reported a mixed second quarter and acquired a mobile security firm, tenCube.

A day after Symantec's earnings bombed, smaller rival McAfee reported a mixed second quarter. McAfee also acquired mobile security company tenCube, which provides a suite called WaveSecure that allows you to locate, lock, back-up and wipe mobile devices.

McAfee's results were better-than-expected on the bottom line, but revenue was light relative to Wall Street expectations. The results come a day after Symantec's earnings and outlook disappointed investors.

The company reported net income of $39.4 million, or 25 cents a share, on revenue of $495.3 million, up 6 percent from a year ago. Non-GAAP earnings were 63 cents a share. Wall Street was expecting McAfee to report earnings of 59 cents a share on revenue of $507.4 million.

McAfee's outlook for the third quarter was also a bit light. The company projected third quarter earnings of 62 cents a share to 66 cents a share on a non-GAAP basis. Revenue for the quarter will be $505 million to $520 million. Wall Street was expecting earnings of 64 cents a share on revenue of $522.7 million.

McAfee CEO Dave DeWalt said in a statement that the company had solid consumer and corporate bookings. McAfee reported second quarter enterprise revenue of $298 million, up 2 percent from a year ago. The company closed 474 deals worth more than $100,000 and 30 worth more than $1 million. Consumer revenue in the second quarter was $191 million, up 8 percent. McAfee signed or extended 25 OEM agreements.

Regarding tenCube, McAfee said the plan was to use the company's technology to create a next-generation mobile security platform. The tenCube purchase is expected to close in August.

Topics: Symantec, Security

About

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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