McAfee acquires tenCube; Second quarter mixed bag

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.

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TOPICS: Symantec, Security
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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

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