McAfee acquiring MX Logic, delivers solid outlook

McAfee is buying the cloud-based e-mail and Web security services vendor for US$140 million in cash. Separately, it delivers a better-than-expected quarterly outlook.
Written by Larry Dignan, Contributor

McAfee on Thursday it would acquire MX Logic, which provides on-demand e-mail, continuity and Web services, for US$140 million in cash.

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.

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

The company reported second quarter net income of US$28.7 million, or 18 cents a share, down from US$47.8 million, or 30 cents a share, a year ago. Non-GAAP earnings in the second quarter were 60 cents a share, 3 cents better than expectations. Second quarter revenue of US$468.7 million was up 18 percent from a year ago.

McAfee said its enterprise revenue was up 21 percent in the second quarter to US$291 million. The company also closed 424 deals worth more than US$100,000 and 57 deals worth more than US$500,000 and 28 worth more than US$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 US$177 million.

As for the outlook, McAfee said third quarter revenue will be between US$475 million and US$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 US$477.7 million.

This article was first published as a blog post on ZDNet.

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