McAfee.com rides the virus wave

NEWS Anti-virus vendor McAfee.com has reached pro-forma profitability for its fourth quarter and for its full fiscal year following the massive rise in virus attacks last year. The company reported a pro-forma profit of $4.2m - or nine cents per share - based on revenues of $18.6m for the three months ended 31 December. The company's revenues were up $6.5m on the same period last year and a 15 per cent rise on Q3 2001 revenues. Net profits for the quarter were $904,000 or two cents per share. Meanwhile, McAfee.com's revenues for the full fiscal year were $62m, compared to $46.9m in 2000 - a rise of 32 per cent. Pro-forma net income for the year was $6.8m. Eighty-nine per cent of McAfee.com's Q4 revenue was derived from subscriptions to its online services and software licences. Revenue is now expected to reach $19.1m ahead of analysts' original suggestions of $18.6m. Full year revenues could reach $90m compared with the previously expected $84m. The results follow similarly positive figures from rival Symantec today. The rise of viruses in the wild has clearly had a beneficial effect on security vendors' fortunes.