Oct 26, 2006 (01:10 PM EDT)
McAfee Reports Preliminary Q3 Results

Read the Original Article at InformationWeek

McAfee reported a profit during its third quarter, but said the results were preliminary as the vendor continues to evaluate past financial statements over a 10-year period due to stock options granting issues.

McAfee's income jumped almost 35 percent to $30.3 million, or 19 cents per share, up from $22.5 million, or 13 cents per share, during the same quarter last year. Analysts polled by Thomson Financial had expected net income of 18 cents.

Exlcuding stock options and other considerations, McAfee's net income was 36 cents per share, compared to the 30 cents per share analysts had expected.

The vendor's quarterly revenue rose 14 percent to $287.8 million, up from $252.9 million year-on-year.

McAfee's large enterprise business represented $110 million, a 16 percent year-over-year jump, but its SMB business generated $73 million, a 5 percent year-over-year drop.

McAfee's budding security risk management portfolio, recently augmented by the acquisition of data leak prevention startup Onigma, represents a $1.3 billion incremental revenue opportunity for the vendor and its partners, said Dale Fuller, interim CEO and president.

Fuller took over earlier this month after former president Kevin Weiss was fired and ex-CEO George Samenuk stepped down due to their invovlment in improper stock options granting practices.

Shares of McAfee were up $1.86 to $28.68 Thursday in after hours trading.