McAfee Misses on Delayed Deals

McAfee misses Wall Street's estimates in its first-quarter results, which were impacted by deal slippage and currency pressures.
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SANTA CLARA, Calif. (

TheStreet

) -- Security specialist

McAfee

(MFE)

missed Wall Street's estimates in its first-quarter results, impacted by deal slippage and currency pressures.

The software maker, which recently

hit the headlines

with a

faulty antivirus update

, posted revenue of $502.7 million, up from $447.7 million in the same period last year. Analysts surveyed by Thomson Reuters had forecast sales of $513.12 million.

McAfee's CEO, Dave DeWalt

"We experienced delays in the closing of certain large deals, modest growth in the midmarket segment and foreign currency headwinds that were greater than we anticipated," explained Dave DeWalt, the McAfee CEO, in a statement released after the market close.

Nonetheless, DeWalt said that he was happy with the company's consumer business, which grew 11% year-over-year to reach $190 million.

Excluding items, McAfee earned 60 cents a share on net income of $96.4 million, compared to 57 cents a share and net income of $88.6 million. Analysts had predicted earnings of 63 cents a share.

McAfee, which is one of

TheStreet's

top security stocks for 2010

, also gave weak guidance. The

Symantec

(SYMC) - Get Report

rival predicted second-quarter revenue between $500 million and $520 million, below analysts' estimate of $526.17 million.

Investors responded quickly to the company's numbers, and McAfee's shares plunged $3.88, or 9.82%, to $33.65 in extended trading.

McAfee has recently been the subject of

buyout chatter

, with

Hewlett-Packard

(HPQ) - Get Report

cited as a potential purchaser.

-- Reported by James Rogers in New York

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