Intel-Bound McAfee Beats Street

McAfee cruised past Wall Street's estimates in its third-quarter results, boosted by government and enterprise sales.
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SANTA CLARA, Calif. (

TheStreet

) --

McAfee

(MFE)

, which is set to be acquired by

Intel

(INTC) - Get Report

, cruised past Wall Street's estimates in its third-quarter results, boosted by government and enterprise sales.

The security software maker brought in revenue of $523 million, an 8% increase on the same period last year, and well above analysts' forecast of $514.2 million. Excluding items, McAfee earned 67 cents a share, a 9% hike on the prior year's quarter, comfortably beating analysts' estimate of 64 cents a share.

McAfee's CEO, Dave DeWalt

"Not only did we exceed consensus on revenue and EPS, there was lower discounting and extended contract lengths

during the quarter," said Dave DeWalt, the McAfee CEO, in an interview with

TheStreet

. "Everything looked good."

McAfee's results come just a day after good numbers from arch rival

Symantec

(SYMC) - Get Report

, which also

beat Wall Street's estimates

, citing strong demand from the public and private sectors.

The McAfee CEO told

TheStreet

that he is seeing a lot of the same things. "The public sector is very strong

for McAfee around the world, particularly in North America," he said. "Our vertical industries have been very strong of late."

Specifically, DeWalt said that McAfee is seeing demand for security in areas such as energy, transportation and financial services. 'We're doing well in these critical infrastructures around the world," he added.

McAfee's shares, however, dipped 3 cents, or 0.06%, to $47.30 on light volume in extended trading on Thursday, possibly as a result of the company's lukewarm guidance. For the fourth quarter, McAfee expects sales between $530 million and $550 million, at the low end of Wall Street's forecast of $550.2 million. Excluding items, the software maker is looking for earnings between 67 cents a share and 71 cents a share, again hinting at downside on the low end vs. the current analysts' prediction of 70 cents.

DeWalt told

TheStreet

that McAfee has taken a cautious approach to the fourth quarter as a result of foreign exchange pressures and the impending acquisition by Intel. "Remember, we're going for regulatory approval," he said. "We have got an environment to be cautious in."

The McAfee chief, however, dismissed suggestions that

integration with Intel could distract his firm

and provide opportunities to rivals such as Symantec.

"We're not integrating," he said, explaining that McAfee will be an independent, wholly-owned subsidiary of Intel. "Intel has

also had quite a lot of success with their most recent acquisition, prior to us,

Wind River

, which has been experiencing record quarters."

Intel's $7.7 billion acquisition of McAfee is expected to close by mid-2011.

--Written by James Rogers in New York.

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