said second-quarter earnings declined from the same period a year ago, and the company lowered its guidance for the second half of the year, sending its stock into a tailspin Wednesday morning.
The maker of computer security products reported earnings of $1.1 million, or 1 cent a share, compared with a profit of $21.2 million, or 14 cents a share, last year.
Excluding items, Network Associates earned $20 million, or 11 cents a share, in the quarter, matching the estimates of analysts polled by Thomson First Call.
For the quarter ended June 30, revenue fell to $216.6 million from almost $233 million a year ago. Wall Street's consensus top-line forecast was $218.2 million.
The company expects third-quarter revenue of $220 million to $225 million, with earnings, before items, of 10 cents to 12 cents a share. Network Associates projected fourth-quarter revenue of $255 million to $260 million and a profit of 20 cents to 22 cents a share.
At the midpoint of the range, the outlook would imply full-year revenue of $911 million and a profit of 54 cents a share.
All of the estimates are below expectations. Analysts are looking for a profit of 13 cents and revenue of $225.5 million in the third quarter and earnings of 24 cents and revenue of $264.8 million in the fourth quarter. For 2003, the consensus forecast calls for earnings of 59 cents and a top line of $922 million.
Following the results and outlook, shares of Network Associates were dropping $2, or 14%, to $12.60 in heavy trading. With just more than 90 minutes gone in the session, 5.4 million shares had changed hands, twice the normal volume during an average full day of trading.