Network Associates Inc, whose shares tumbled 22% Thursday on concerns over the security software company’s ability to make first-quarter estimates, may prove some doomsayers wrong. Analyst Michael Kwatinetz at Credit Suisse First Boston has indicated that before entering its quiet period, the company appeared to be comfortable with the consensus estimate of $0.49 per share for the quarter. Much may depend upon this month, however, as CSFB believes that March should account for between 45% and 55% of the quarter’s total revenue.
In a research note, Kwatinetz also said that the company appears to be making progress in its ongoing investigation by the SEC over in-process R&D write-offs from its numerous acquisitions – another factor pushing the stock down. CSFB reckons that the discussions are centered around deals completed in 1998 and 1997 and that the 1998 10-K filing should appear by the end of March. The bank maintains it buy rating on Network Associates’ stock. Nevertheless, the shares continued their downward spiral Friday, losing $4.1875 to close at $28.0625.
