McAfee, the California based antivirus software and computer security company is suffering bruises in the Q1 of 2010. Dave DeWalt, the CEO of McAfee is a worried man as the entire world was shocked and dumb stuck when they heard the news. He also attributed the results to the bigger charges on restructuring and the two big word daddy of any company Income Taxes. Market is still a thorn field for many companies especially the IT sector which is still hibernating. Highlighting these things the first quarter turned out to be the bowl out for McAfee. It is said that the first quarter revenue touched whopping $502.7 million but it failed to cover the previous year profit of $53.5 million. McAfee managed to get hold of only $37.6 million which resulted in a loss of 23 cents per share. That’s a lot of money on the hole but not even worth a burger when stand alone. “We are disappointed with the quarter” said its CEO and what more to say that to accept the fact that the job execution has a great scope of improvement.
This 1987 born company stretched to $1.6 billion as its revenue in 2008 and a monstrous operating income of $1.42 billion. However it is said that every company has its downturn and rightly so as the big competitor of Norton fell short this quarter and was thumbs down in the NASDAQ. Adding fuel to the fire the decline in the profits is synonymous to the faulty antivirus update that was sent to shutdown of thousands of enterprise and consumer computers running Windows XP Service Pack 3. DeWalt told the reporter that the company predicted the slope in their growth curve. But who will predict a 30% decline. Is this to shy away from the results? Guess what is the answer from the Dow Jones? A fall of 10.4%. Phew! This is a big blow to all the investors of McAfee.
The computer security software maker informed the reporters that the sales to the customers were strong enough but the release of the DAT file spoiled the hopes of many million share holders. If one mistake can ruin the hearts of many then it is a faulty release. The company also added that the deferred revenue also reached a record high of $1.4 Billion this quarter. Although the company is suffering with bruises it too enjoys some healthy results. This quarter marked 17th consecutive quarter of double-digit year-over-year growth. The revenue grew 11% year on year to reach a record $190 million. McAfee has also signed in 24 new agreements and it is all ready to launch 72 new and enhanced partnerships. This partnership marks the name of more than 200 brand name partners Worldwide. Last quarter also marks the closure of 376 deals which is greater than $100,000 in value. Isn’t that great? McAfee hopes to reach revenue of $500 million in the next quarter.