McAfee results put Symantec in the shade

Symantec: plans to shave 4.5 per cent from its wage bill

Security vendor McAfee has issued solid quarterly results and a bullish outlook hot on the heels of a more cautious statement from arch-rival Symantec.

Buoyed by a 33 per cent growth in corporate sales, McAfee’s third quarter revenues rose 27 per cent year on year to $410m (£253m) as it reported “robust demand” for its products.

Although net profits fell 23 per cent to $48.8m, McAfee’s bottom line beat Wall Street estimates.

McAfee’s projections for the current quarter also impressed. The vendor, which recently bought Secure Computing, reckons it will hit revenue of between $400m and $420m and earn between 50 and 56 cents a share for its final quarter.

Chief executive Dave DeWalt, said in a statement: “We continued to see robust demand across our portfolio of security solutions. In particular, McAfee Network Security Platform, formerly known as IntruShield, grew sales more than 100 percent over last year's third quarter.”

The results came a day after larger rival Symantec disappointed investors with a lukewarm outlook for its present quarter, sparking an 18 per cent drop in its share price.

Symantec also confirmed on a conference call plans to shave 4.5 per cent off its wage bill, sparking predictions that around 800 jobs could go.

Chief financial officer James Beer admitted that Symantec is set for a period of corporate belt-tightening.

“We are in the process of implementing a reduction in force as well as carefully managing the replacement of ongoing attrition,” he said.

“In addition, we are focusing on our travel expenses as well as all other discretionary purchases. We estimate that these actions will allow us to maintain our quarterly operating expenditures approximately in line with the September quarter’s result for the remainder of the fiscal year versus the more traditional pattern of cost increases in the second half of the year.”