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Technology Stocks : Network Associates (NET) -- Ignore unavailable to you. Want to Upgrade?

To: Jay Rommel who wrote (4705)	4/6/1999 3:42:00 PM
From: Narotham Reddy	Read Replies (1) \| Respond to of 6021

Network Associates Slumps on Concern About Accounting Review Network Associates Slumps on Concern About Accounting Review Santa Clara, California, April 6 (Bloomberg) -- Network Associates Inc., the top maker of security software, tumbled as much as 27 percent amid concern about a U.S. Securities and Exchange Commission review of its accounting practices. Network Associates, which makes software to protect data and fight computer viruses, fell 7 15/16 to 21 1/2 in late trading. The shares earlier touched 21. The Santa Clara, California-based company is facing a review of its accounts for acquisition-related expenses. The company is expected to restate 1998 earnings downward because of the review, analysts said. Morgan Stanley Dean Witter & Co. analyst Chuck Phillips lowered his rating on the company to ''neutral'' from ''outperform'' today. He wasn't immediately available for comment. Network Associates, which went on a buying spree last year, said on Jan. 6 that it received a letter from the SEC regarding how the company writes off acquisition-related expenses and that earnings may be reduced by new SEC rules. The SEC has said it is examining closely the use of charges to pay for in-process research and development acquired in a takeover, amid concern that large estimated values for these unfinished technology projects may inflate future earnings for the combined companies. On Jan. 6, Network Associates Chief Executive William Larson said the company expected earnings of 47 cents a share for the period ended Dec. 31, up from the year-earlier, split-adjusted 29 cents.