Network Associates Posts Loss, Cuts 2003 Outlook - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Network Associates Posts Loss, Cuts 2003 Outlook

The security-products vendor blames lower customer spending and the war in Iraq for the $3.7 million loss.

Network Associates Inc. on Thursday reported a loss for the first quarter of 2003 and cut its financial outlook for the year. George Samenuk, CEO of the security-products vendor, cites a steep pullback in customer spending as a result of tight economic conditions and uncertainty about the war in Iraq as the reason for the loss.

For the first quarter of 2003, ended March 31, Network Associates reported a loss of $3.7 million, compared with a profit of $15.8 million for the same period last year. Overall revenue fell to $215.2 million, from $220.7 million a year earlier.

Network Associates expects earnings to fall to between $215 million to $220 million for the second quarter. For the fiscal year, the company says it expects revenue between $930 million and $950 million.

"Economic conditions deteriorated rapidly toward the end of the quarter," Samenuk said during a conference call with analysts, adding that many large deals were cut in size, and full deployments were even postponed by customers who got skittish about the economic outlook at the end of March. It's common for software companies to close more than half of expected sales at the end of the month.

"These are not normal times. Over the last several weeks, I have meet with many CEOs and CIOs who have slashed IT budgets across the board," Samenuk said.

Network Associates still isn't able to report its annual 2002 financial statement as a result of two previously announced federal investigations for the years 1998 through 2000. The company said last month that it's restating its results for those years.

The financial woes didn't stop Network Associates from conducting a recent buying spree. In the first week of April, the company bought IntruVert Networks, a maker of network intrusion-prevention firewalls, for $100 million, and acquired Entercept Security Technologies for $120 million. Entercept makes host-based intrusion-prevention software to protect servers.

Said Samenuk, "We're going to move the industry standard from intrusion detection to intrusion protection."

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
News
Top 10 Data and Analytics Trends for 2021
Jessica Davis, Senior Editor, Enterprise Apps,  11/13/2020
Commentary
Where Cloud Spending Might Grow in 2021 and Post-Pandemic
Joao-Pierre S. Ruth, Senior Writer,  11/19/2020
Slideshows
The Ever-Expanding List of C-Level Technology Positions
Cynthia Harvey, Freelance Journalist, InformationWeek,  11/10/2020
Register for InformationWeek Newsletters
Video
Current Issue
Why Chatbots Are So Popular Right Now
In this IT Trend Report, you will learn more about why chatbots are gaining traction within businesses, particularly while a pandemic is impacting the world.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll