PC tools and antivirus software maker Symantec today said it will acquire the struggling Quarterdeck and beat revised Wall Street estimates by 1 cent when it reported its second-quarter financial results.
Symantec said it has signed a definitive merger agreement with Quarterdeck, which makes PC performance software tools, for about $65 million in cash. The boards of directors of both companies have approved the acquisition and Symantec expects to complete the transaction by the end of November, pending regulatory and shareholder approval.
The company will also assume Quarterdeck's outstanding debt as part of the deal.
Meanwhile, Symantec posted net income of $6.8 million or 12 cents per share, compared to net income of $20.6 million or 35 cents per share for the like quarter a year ago. Excluding restructuring-related charges, Symantec reported income of $11 million or 19 cents per share.
Financial analysts estimated the company would post profits of 18 cents per share, according to First Call. But all seven analysts that cover the company had revised earnings estimates downward in the past 30 days. Last week the company warned that revenues would be 10 percent lower than expected.
Quarterly revenues were largely flat at $140 million, up slightly from $139 million a year ago.
"The U.S. retail software market improved in September but was slow in July and August," chief executive Gordon Eubanks said in a statement. As previously reported, the company will lay off about 100 employees as a result of slow summer software sales.
Symantec's financial results did not include the Intel or Quarterdeck deals.