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Technology / AI and automation

MCAFEE HAS TOUGH TIMES AHEAD AS COMPETITORS EAT INTO PROFITS

Having consistently outperformed the market’s predictions for the past three years with compound revenue growth of 116%, anti-virus phenomenon McAfee Associates Inc has brought the rain down on its own parade with a grim forecast for the future of its own products. McAfee’s second quarter profits reported in July were exceptional, but the Santa Clara company has now filed its 2nd quarter 10Q form with the US Securities and Exchange commission, in which it states that competitive pressures will make it difficult for the company to maintain its growth rate. The statement goes on to add that competition could result in sustained price reductions and a decline in sales volume, ultimately affecting its financial condition and results of operations. Ardent supporters in the analytical community insist that McAfee has said nothing new in this report, but others reacted nervously and the shares were marked down 10% to $56.25. The comments be the first signs of a pricing war between McAfee and arch rivals Symantec Corp who are currently slinging mud in the US courts over copyright issues.

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CBR Staff Writer

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