Network Associates loses $196M in quarter
Security software vendor Network Associates Inc. yesterday announced that it lost $195.8 million, or $1.41 per share, on revenue of $25.2 million for its second quarter ended June 30.
The revenue was only around a tenth of the result for the same period last year, while the net loss was five times larger. However, the drop in revenue and the loss were expected.
On filing its first-quarter results April 18, Network Associates, in Santa Clara, Calif., announced that inventories in its distribution channels were too large and, therefore, the sale of new products to the channel in the second quarter would be limited.
Another contributing factor to the big loss was a $31.8 million reserve for customers' potential payment defaults.
Network Associates develops and sells antivirus, firewall and encryption software, as well as software for tracing and tracking hackers, and utilities.