July 30th, 2009
McAfee acquires MX Logic, Delivers solid third quarter outlook
McAfee on Thursday acquired MX Logic, which provides on-demand email, continuity and Web services, for $140 million.
The move is designed to bolster McAfee’s security as a service lineup. Security software vendors have been racing to the cloud. MX Logic has 40,000 customers who cover more than 4 million end users. McAfee said that it plans to cross-sell MX Logic with its Web services such as the Total Protection Service (statement).
Separately, McAfee topped second quarter estimates and delivered a better-than-expected third quarter outlook (statement).
The company reported second quarter net income of $28.7 million, or 18 cents a share, down from $47.8 million, or 30 cents a share, a year ago. Non-GAAP earnings in the second quarter were 60 cents a share, three cents better than expectations. Second quarter revenue of $468.7 million was up 18 percent from a year ago.
McAfee said that its enterprise revenue was up 21 percent in the second quarter to $291 million. The company also closed 424 deals worth more than $100,000 and 57 deals worth more than $500,000 and 28 worth more than $1 million. That tally indicates that McAfee may be putting pressure on Symantec, which reported disappointing enterprise results.
In McAfee’s consumer business second quarter revenue was up 13 percent to $177 million.
As for the outlook, McAfee said third quarter revenue will be between $475 million and $495 million. Non-GAAP earnings will be 58 cents a share to 62 cents a share. Wall Street was expecting non-GAAP earnings of 59 cents a share on revenue of $477.7 million.
Larry Dignan is Editor in Chief of ZDNet and Editorial Director of ZDNet sister site TechRepublic. See his full profile and disclosure of his industry affiliations.
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