McAfee reported its fourth quarter earnings of $12.2 million, or 7 cents a share, on revenue of $356.5 million. Excluding charges, McAfee reported earnings of $75.1 million, or 46 cents a share.
Wall Street was expecting earnings of 45 cents a share, according to Thomson Financial. McAfee projected first quarter earnings of 24 cents a share to 29 cents a share. Excluding charges, McAfee is projecting 42 cents a share to 47 cents a share on revenue between $345 million to $360 million. For the year, McAfee projected revenue of $1.42 billion to $1.52 billion and earnings of $1.25 a share to $1.35 a share. Excluding items, McAfee is projecting 2008 earnings of $1.85 a share to $1.95 a share.
That outlook was in line with expectations with room to top estimates.
So what's working for McAfee?
McAfee's corporate business had revenue growth of 24 percent in the fourth quarter compared to a year ago. Sales were driven by the Total Protection for Endpoint and IntruShield products. Sixty percent of McAfee's revenue comes from the enterprise. The deal breakdown is as follows:
- 453 deals over $100,000;
- 56 deals over $500,000;
- 14 deals over $1 million.
The consumer business had growth of 7 percent to $141 million in the fourth quarter. McAfee said it changed its revenue model from up front payment to subscriptions.