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7/16/2003
02:09 PM
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Network Associates' Profit Tumbles

The security vendor's sales were down sharply from the year-ago quarter, and it's not expecting a big upturn in the second half.

Network Associates Inc. on Wednesday reported net income of $1.1 million, or 1 cent a share, for its second quarter. That's down significantly from the $21.2 million, or 14 cents a share, the company earned in the same period last year.

Sequentially, revenue remained essentially flat at $216.6 million, compared with $215.2 million for the first quarter, though it was much lower than the $233 million reported in the year-ago quarter. The security vendor says it expects revenue of $220 million to $225 million for the third quarter and $255 million to $260 million for the fourth quarter.

Network Associates completed its acquisitions of intrusion-prevention companies IntruVert Networks and Entercept Security Technologies in the second quarter. "They are swallowing a lot with those acquisitions, but they're positioning themselves well for the future," says Pete Lindstrom, research director for Spire Security. "They want to own the intrusion-prevention market, and there's lots of growth potential in that area."

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