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Roundup: Network Associates, Clarify, Concentric hurdle forecasts

Network Associates (Nasdaq: NETA) surpassed analyst forecasts in the fourth quarter.

After market close Monday, the vendor of security and utility software posted fourth quarter net income of $30.1 million, or 20 cents per share, excluding amortization and one-time events. First Call's survey of 17 analysts predicted a profit of 17 cents per share.

Earlier this month, Network Associates executives indicated they expected to report fourth quarter results above Wall Street expectations.

Including writedowns and non-recurring charges, Network Associates earned $9.9 million, or 7 cents per share.

Fourth quarter revenue of $218.1 million represented a 19.9 percent decline year-over-year and a 12 percent gain sequentially. Operating margins rose to 12 percent from 8 percent in the third quarter.

After spending much of 1999 trying to sell all-in-one security suites, the company recently shifted its focus to selling individual products. Network Associates is reorganizing around four divisions set up along different product lines.

The company spent $10.8 million to buy back 685,000 shares in the fourth quarter.

For the full year, Network Associates lost $159.9 million, or $1.15 per share, on revenue of $683.7 million.

Shares of Network Associates closed Monday's regular session at 28 1/2, up 1 5/16 for the session. Among 19 analysts polled by Zack's Investment Research, eight maintain the equivalent of "hold" advisories on Network Associates, seven have "moderate buy" ratings, two rate the stock a "strong sell" and two offer with "strong buy" recommendations.

Other companies reporting quarterly results:

  • Concentric Networks
  • (Nasdaq: CNCX) lost less money in the fourth quarter than analysts predicted.

    The provider of Internet access and network services for businesses reported a fourth quarter loss of $32.9 million, or 74 cents per share. Revenue for the quarter rose 83 percent year-over-year to $45.9 million.

    "We are once again very pleased with our quarterly results," said Henry R. Nothhaft, chairman, president and CEO. "Sequential revenue growth was the largest in the Company's history, giving us strong momentum going into 2000."

    For the full year, Concentric lost $111.8 million, or $2.76 per share, on revenue of $147.1 million.

  • Clarify
  • (Nasdaq: CLFY) beat the consensus analyst estimate in what's likely to be its last quarter as an independent company.

    The vendor of front office software posted fourth quarter earnings of $7.5 million, or 27 cents per share, not counting merger-related costs and including writedowns. First Call's survey of five analysts predicted a profit of 25 cents per share for the quarter ended Dec. 31.

    Excluding non-recurring charges and amortization, Clarify earned $8.4 million, or 30 cents per share. Including writedowns and one-time expenses, the company earned $2.7 million, or 10 cents per share.

    Fourth quarter revenue increased 73 percent year-over-year to $71.6 million. License revenues improved almost 70 percent year-over-year, said Tony Zingale, president and CEO of Clarify.

    For the full year, Clarify earned $20.4 million, or 78 cents per share, not counting amortization or special charges, on revenue of $230.7 million.

    Clarify expects to complete its acquisition by Nortel Networks (NYSE: NT) in the first quarter of this year.>