The pro forma net earnings for the quarter, excluding McAfee.com, interest expense from convertible debt, amortization expense and compensation charges related to employee stock options (hereinafter called Non-cash Charges), was $8.5 million, or $0.05 per share. On a consolidated basis, and taking into account Non-cash Charges, third quarter net loss was $11.3 million, or $0.08 per share.
The company was cash flow positive in Q3, ending the quarter with cash and marketable securities totaling $956.8 million, aided by $335 million in the new convertible debt offering net proceeds, $33 million in cash from operations, less spending $62 million on the early retirement of a portion of the company’s zero coupon convertible debt. The positive cash flow in the third quarter was attributed to cost-saving initiatives and increased operating efficiencies.
Nine months ago I committed to returning this company to profitability while instilling a focus on customers throughout every level of the organization, said George Samenuk, chairman, president and CEO of Network Associates. I remain dedicated to that commitment as does every Network Associates employee. Today’s results demonstrate the promise of a focused, global organization, and I am very proud to be a part of this worldwide team.
