Antivirus software vendor Network Associates Inc. reported a loss for its second fiscal quarter but managed to inch ahead of analysts' forecasts thanks partly to growth outside the U.S., the company announced Thursday.
For the three months ended June 30, NAI reported a consolidated net loss of US$37.2 million, or $0.27 per share, compared with a profit of $11.4 million, or $0.08 per share, in the same quarter last year.
Revenue was $195.9 million, down from $233.7 million in the same quarter last year, NAI said. All of the above figures include the results of its McAfee.com Corp. subsidiary.
For the quarter, NAI spent $34.9 million on research and development, down from $42.9 million in the second quarter of 2000, but upped marketing and sales efforts from $99.7 million to $106.9 million, officials said.
In a statement, the company said its focus on international markets has been "validated" by growth overseas. It said it logged increased sales during the quarter in both Europe and the Asia-Pacific region.
Excluding its McAfee.com subsidiary and certain one-time charges, NAI tallied a pro forma net loss for the quarter of $2.7 million, or $0.02 per share, which compared to a profit of $36.2 million, or $0.24 cents per share, a year earlier.
The per share figure beat the expectations of financial analysts, who had been expecting the company to lose $0.06 cents per share, according to a consensus estimate gathered by Thomson Financial/First Call.
Network Associates has made a series of organizational changes over the past few quarters aimed at bolstering its declining fortunes, streamlining sales and cutting costs. The company has also added new executives, including chief executive officer George Samenuk. Its efforts to cut costs and boost efficiency helped it to end the quarter with cash and securities totaling $650.6 million, up $14.0 million from the prior quarter, the company said. It would have ended the quarter cash-flow positive if it hadn't spent $10.7 million to buy shares from a third party in its Japanese subsidiary, the company said.
Looking ahead, NAI said it expects revenue for its third quarter to be between $185 million and $195 million, excluding McAfee.com, or $201 million to $211 million including the subsidiary. Excluding McAfee.com and other charges, earnings per share for the third quarter are expected at between $0.00 and $0.03, the company said.
NAI's shares on the Nasdaq stock market (NETA) ended the day up $0.53, or nearly 5 percent, at $11.29.