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Not All Cyber-Security Stocks Created Equal

Shares of McAfee surged on Friday after the company reported handsome profits and a solid outlook.

The results contrasted sharply with the lower-than-expected earnings of its bigger rival, Symantec, which also issued a forecast that was below analysts' views.

Symantec blamed its problems on the recession, saying businesses were only buying as much software as they needed.

But McAfee took the proverbial lemon and made lemonade by offering attractive discounts. And ultimately, businesses signed larger deals to take advantage of those discounts; just look at the numbers.

McAfee sales to businesses grew 21% from a year ago, by contrast Symantec sales to that group fell 14%. And McAfee's consumer sales rose 13% largely due to new partnerships with PC makers, which preload McAfee's programs on their machines. Symantec's consumer-group revenue declined 4%.

"Our momentum continues to grow and we continue to win market share," Chief Executive Dave DeWalt tells Fast Money. “And 91% of our business is recurring every quarter.”

In addition, DeWalt is striking deals. McAfee also said it would buy privately held MX Logic, a provider of web-based email, web-security and archiving services, for about $140 million in cash.

To hear more from McAfee CEO Dave DeWalt please watch the video.

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