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Revenue fell slightly, but income surged for Network Associates (NAI) in the first quarter, according to a statement released by the company.
After announcing the planned sale of its Sniffer product line last week, Santa Clara, Calif.-based NAI reported net income of $56 million (or $.32 per diluted share) on net revenue of $217 million, compared with net income of $12 million (or $.08 per diluted share) in the same quarter last year.
The results show that NAI is focusing its strategy on providing security technology and developing its portfolio of security products, according to a statement attributed to George Samenuk, chairman and CEO.
Strong consumer demand for the company's McAfee antivirus, firewall and antispam products drove much of the company's growth in the quarter. NAI added about 860,000 new subscribers for its online managed services, increasing its total subscriber base to more than 4.5 million, the company said.
Revenue from the company's consumer products, which includes retail sales of its McAfee VirusScan and Personal Firewall Plus products and the McAfee.com online service, increased from $27 million in the first quarter of 2003 to $44 million in the first quarter of 2004, driven by new products such as McAfee AntiSpyware and by a flood of troublesome worms released by competing virus-writing groups.
Revenue from sales of technology to enterprises fell slightly compared with a year earlier, from $55 million to $53 million, as did revenue from the company's small business products, from $69 million to $66 million.
NAI's Sniffer Technologies business shrank from a year earlier, from $49 million in the first quarter of 2003 to about $43 million in the first quarter of 2004. NAI announced last week that it was selling its Sniffer business to an investment group for $275 million in cash. The company also said that it will change its name to McAfee following that sale.
The company forecast lower revenue and earnings for the second quarter, saying it expected pro forma earnings of about $0.04 to $0.06 per share on revenue of between $200 million and $205 million.
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