Network Associates’ Profit Report Upbeat
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Network Associates Inc., a maker of computer security and anti-virus software, reported better-than-expected profit growth for the third quarter, sending its shares up 25%.
Network Associates also said it cut 100 jobs and would shift one-third of the nearly 600 workers at its Santa Clara, Calif., headquarters to a facility near Dallas to reduce costs.
Net income was $9.1 million, or 6 cents a share, contrasted with a net loss of $11.3 million, or 8 cents, in the same period a year ago.
The results include $24.8 million in charges related to the purchase last month of the remaining 25% of McAfee.com that it didn’t already own. Excluding the charges, net income would have been $27 million, or 15 cents a share, 3 cents higher than estimates. Revenue increased 13% to $232.2 million.
The results sent Network Associates shares up $2.16 to $10.76 on the New York Stock Exchange.
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