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To: wanna_bmw who wrote (167934)	7/10/2002 7:02:49 PM
From: wanna_bmw	Respond to of 186894

McAfee.com Swings to Profit in Second Quarter (Another profitable company? For sure there must be some mistake...) biz.yahoo.com SUNNYVALE, Calif. (Reuters) - McAfee.com Corp. (NasdaqNM:MCAF - News) on Wednesday said it swung to a profit in the second quarter on strong sales of its subscription-based Web security services. In addition to beating consensus estimates by 3 cents per share on earnings and posting revenue in line with expectations for the second quarter, McAfee.com gave guidance of earnings per share of 10 cents for the next two quarters and revenue of $22 million for the third quarter and $23 million to $24 million for the fourth quarter. For 2002, the company is raising its earnings per share guidance by 8 cents to between 37 cents and 38 cents on revenue between $84 million and $85 million, Chief Financial Officer Evan Collin said in a conference call with analysts. McAfee.com posted net income of $6.4 million, or 13 cents a share, including one-time items, compared with a net loss of $134,000, or break even per share, a year earlier. Excluding amortization of intangibles and items related to a tender offer, McAfee.com posted a pro forma profit of $4.7 million, or 10 cents a share, compared with a profit of $1.26 million, or 3 cents a share, a year earlier. Revenue for the second quarter rose to $20.7 million from $14.4 million a year earlier, according to the Sunnyvale, California-based company, which is about 75 percent owned by security software provider Network Associates Inc. (NYSE:NET - News) Analysts polled by Thomson First Call on average expected the company to earn 7 cents per share for the quarter. "Our business and financial health has never looked better," President and Chief Executive Srivats Sampath said in the conference call. "We continue to be the largest subscription-based Web security services company on the Internet." Network Associates has made a third offer to acquire the part of McAfee.com it doesn't already own. McAfee.com's board and a special committee formed to look at the offer have advised shareholders to wait until they make a recommendation before acting. The McAfee.com special committee had rejected the first offer, but approved the second offer which had the same terms as the current bid. The offer is worth about $170 million. Shares of McAfee.com, which offers anti-virus, PC management and other computer security services, closed on the Nasdaq on Wednesday at $13.85, down 2.26 percent, or 32 cents, on the day. Shares were trading as high as $14.65 on Instinet in after-hours trade. The 52-week high was $42.69 and the 52-week low was $9.78. Shares of Network Associates closed at $17.70 on the New York Stock Exchange, down 2.75, or 50 cents on the day. McAfee.com stock has outperformed both the S&P 500 Index (CBOE:^SPX - News) and the Nasdaq Index (NasdaqSC:^IXIC - News), rising about 15 percent while the S&P has fallen more than 20 percent and the Nasdaq has plunged about 30 percent. wbmw