Network Associates Posts Earnings, Revenue Beats

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Network Associates

(NET) - Get Report

posted a first-quarter profit on better-than-expected revenue, beating the consensus analyst estimate by 2 cents, and offered updated guidance for the rest of 2002.

The computer security company said that its first-quarter pro forma earnings were $15.8 million, or 9 cents a share, up from a pro forma loss of 17 cents a share in the year ago quarter. According to Thomson Financial/First Call, analysts had been expecting earnings of 7 cents a share for the quarter.

Consolidated revenue for the quarter was $220.7 million, up from $157.52 in the year ago quarter. Excluding

McAfee.com

(MCAF)

, in which the company currently has a 75% ownership stake with plans under way to acquire at least 90% by the end of April, Network Associates' revenue for the quarter was $201.9 million.

For the second quarter, the company expects to see pro forma net earnings between 11 cents and 13 cents a share on revenue of $210 million to $220 million, excluding its stake in McAfee.com. Analysts polled by First Call are currently expecting earnings of 11 cents on revenue of $210.7 million.

Network Associates also raised its full year guidance, now expecting pro forma earnings excluding McAfee.com of 50 cents to 55 cents a share on revenue of $875 million to $900 million. If the acquisition of McAfee goes through, the company will provide updated consolidated guidance.

Shares of Network Associates were recently down 0.7% to $22.00 on heavy trading on the Instinet premarket platform after closing at $22.15 Wednesday.