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RealTime IT News

McAfee Falls As Accounting Woes Linger

Shares of McAfee lost nearly 5% Friday despite better than expected results, as accounting issues continue to weigh on the company.

McAfee's pro forma earnings of 23 cents a share beat Wall Street estimates by a penny, and revenues of $244.5 million were well above estimates.

The company also raised guidance above expectations, but the company said it will delay filing its annual report until the end of March while it checks accounting controls.

"The fundamentals are strong, but the subsequent news just clouds the picture of the strong fundamentals," Piper Jaffray analyst Gene Munster told Reuters.

The broader market rose for the third straight day after revised fourth-quarter GDP clocked in at a better than expected 3.8%.

The Nasdaq rose 13 to 2065, the S&P 500 climbed 11 to 1211, and the Dow surged 92 to 10,841. Volume rose to 1.52 billion shares on the NYSE, but declined to 1.78 billion on the Nasdaq. Advancers led 25-7 on the NYSE, and 20-10 on the Nasdaq. Upside volume was 80% on the NYSE, and 56% on the Nasdaq. New highs-new lows were 351-22 on the NYSE, and 124-40 on the Nasdaq.

MCI slipped on Qwest's latest takeover offer and a weak revenue outlook.

Synaptics surged on a deal with Apple , while TiVo fell after speculation cooled about a merger with Apple.

The Nasdaq Stock Market gained 9% on its earnings report.

McData , Blue Coat , Catalyst and Tekelec fell on their results.



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