McAfee 3Q Profits Fall 25 Percent On Higher Costs

SANTA CLARA, Calif. (AP) — McAfee Inc. on Thursday said third-quarter profit fell by 25 percent as higher costs and charges ate away at a revenue increase.

The maker of anti-virus software earned $36.8 million, or 23 cents per share, compared with $48.8 million, or 31 cents, in the same quarter a year ago.

Earnings reflect $26.6 million in stock-based compensation charges and $2.7 million in acquisition costs. Last month, McAfee closed its $140 million purchase of MX Logic Inc. MX Logic provides cloud-based e-mail and Web security services, those handled over the Internet.

Excluding one-time items, McAfee earned $98.6 million, or 62 cents, compared with $82.2 million, or 53 cents, last year.

Revenue was up 18 percent to $485.3 million. Analysts were projecting $486.6 million in revenue and earnings of 60 cents per share.

For the fourth quarter, McAfee expects to report revenue of $505 million to $525 million and adjusted earnings of 61 to 65 cents per share. Analysts are expecting 63 cents in profit and revenue of $506.7 million.

Shares of McAfee, based in Santa Clara, Calif., fell $1.95, or 4.5 percent, to $41.80 in after-hours trading when the earnings were released. The stock was up $1.51 to $43.57 in Thursday's regular session.