×

McAfee Profits Fall 9%; Annual Report Will Be Late

Security software maker McAfee said fourth-quarter profit slipped 9% from the fourth quarter 2005 as costs rose.

The company said the results are preliminary due to pending restatements. McAfee is one of roughly 200 companies to launch a probe of stock option grants or are under federal scrutiny for possibly backdating stock option grants. It previously said it would need to record additional noncash charges of $100 million to $150 million for historical stock option grants that had not been properly accounted for.

The company also said it does not expect to file its annual report by its March 1 deadline, and is seeking an extension.

The company also suspended its $246 million stock repurchase plan temporarily, due to the delayed filing of results. The plan was expected to last through October.

Net income for the quarter was $35 million, or 21 cents a share, down from $38.6 million, or 23 cents a share, in the fourth quarter 2005. Excluding certain expenses, income was $58.8 million, or 36 cents a share.

Operating costs rose 31% to $199.6 million.

Revenue for the quarter was $305.2 million, up 21% from $253.3 million in the year ago period.

Analysts expected the company to post earnings, on average, of 34 cents a share on $290.9 million in revenue.

Net income for the full year was $137.5 million, or 84 cents a share, down 1% from $138.8 million in the year ago period. Excluding certain expenses, income was $226.9 million, or $1.39 a share.

Revenue for the year was $1.14 billion, up 16% from $987.3 million in 2005.