Network Associates Earnings Flat - TheStreet

Network Associates'

(NET) - Get Report

third-quarter earnings were close to unchanged from a year ago and the company said current-quarter earnings and revenue will be roughly in line with analyst estimates.

The firewall seller earned $9.9 million, or 6 cents a share, on revenue of $226.9 million in the quarter, compared with earnings of $9.1 million, or 6 cents a share, last year.

Excluding items like stock compensation and amortization, the company reported pro forma earnings of 15 cents a share. The figure is primarily useful because of its comparability to Wall Street analyst estimates, which were for earnings of 11 cents a share on revenue of $221.7 million, according to Thomson First Call.

The company said it added 709,000 net new subscribers to its online managed services during the quarter, a 496% increase over the number of net new subscribers in the third quarter of 2002. Total subscribers are now 3 million.

The analyst estimates reflect the weak guidance Network Associates offered in July, when it predicted third-quarter revenue of $220 million to $225 million and net income of 10 cents to 12 cents a share, excluding items. That outlook left the company's stock out of the summer bull market, sending it into the low teens in late August before a slight bounceback.

The shares closed at $15.33 Wednesday night.

The company expects fourth-quarter pro forma earnings of 20 cents to 22 cents a share on revenue of $255 million to $260 million. Analysts were forecasting earnings of 21 cents a share on revenue of $256.7 million.