Topping First Call estimates by a penny, McAfee reported an 88 percent increase in earnings per share to 45 cents, from 24 cents per share in the previous year. Net income for the third quarter increased 90 percent to $24.48 million, versus net income of $12.89 for the year-ago quarter.
"We increased our focus on the balance sheet in the third quarter with excellent results. Cash and investments increased $41 million during the quarter through improved management of cash and collections. We are very pleased with this quarter's results," said William Larson, CEO and president and chairman of McAfee, in a statement.
Revenue for the first nine months of 1997 rose to $247.9 million, a 103 percent increase over revenue of $121.9 million reported in the same period a year ago. Net income for the first nine months rose to $67.85 million from $23.38 in the year-ago period. Adjusted for acquisition costs in the nine months ended September 30, and earnings per share grew 100 percent from 63 cents per share.
Earlier this month, McAfee announced it would acquire Network General (NETG ) in a stock-for-stock merger valued at more than $1.3 billion. Upon both companies' shareholders' approval, the two companies would join to form the new venture, to be named Network Associates.
If the merger goes through, Network Associates will be the world's largest network security and management software company, and the 10th largest independent software company.