Network Associates To Post Quarterly, Annual Loss; Execs to Step Down - TheStreet

Network Associates

(NETA)

said Tuesday it expects to post a fourth-quarter loss of between $130 million and $140 million due to reduced orders and a slowing economy.

The Santa Clara, Calif.-based provider of software security systems did not provide earnings-per-share figures. Eleven analysts polled by

First Call/Thomson Financial

are calling for the company to earn 31 cents a share for the quarter. The company earned 20 cents in the year-ago period.

Network Associates says it expects fourth-quarter revenue of $55 million and $65 million. Analysts polled by First Call/Thomson Financials were expecting revenue of $241.9 million.

The the full year, the company expects revenue in the range of $742 million to $752 million and a net loss between $84 and $94 million. Analysts were expecting full-year revenue of $894 million, according to the First Call/Thomson Financial consensus.

The revised numbers were caused by "the decision of key distributors to dramatically reduce their inventory levels and by a reduction in fourth-quarter demand induced by a slowing overall economy," the company said in a statement.

The company also announced that Chairman and CEO William Larson, President Peter Watkins and Chief Financial Officer Prabhat Goyal were stepping down. Edwin Harper, a director of the company, will take over as chairman. Larson said he will stay until a new CEO is announced, and Goyal will stay until a replacement is found.

Shares of Network Associates fell 13 cents, or 1%, to $11.75 in regular session

Nasdaq

trading, but plummeted to $6 in recent after-hours

Island

trading.