McAfee Hacks Into Success

Less isn't always more. But in the case of McAfee(MFE Quote), the No. 2 provider of antivirus software, less has been a winning strategy.

Since shedding its former moniker -- Network Associates -- and three underperforming business units in 2004, the Silicon Valley-based company has seen its stock appreciate by more than 60% while profit and revenue in the first quarter jumped by more than 30% on a pro forma basis. Once a weak player in two of its three lines of businesses, McAfee has slimmed down to focus on its core strength -- Internet security software -- and is getting good reviews from much of Wall Street in the process.

It hasn't all been smooth sailing. Archrival Symantec(SYMC Quote) has been strengthening its hold on the fast-growing consumer market, while Tokyo-based Trend Micro is winning share in the commercial market, according to NPD Group. And privately held WebRoot, NPD says, is making a big splash in the nascent market for antispyware. ...