COMPANY PRESS RELEASE: Network Associates has announced that for the fourth quarter ended December 31, 2001, consolidated net revenue was $259 million. Excluding McAfee.com, Network Associates reported fourth quarter net revenue of $241 million.
On a consolidated basis, Network Associates’ fourth quarter net loss was $3.5 million, or $0.02 per share. The pro forma net earnings for the fourth quarter, excluding McAfee.com, were $40.5 million, or $0.23 per share.
Consolidated revenue for the year 2001 was $834 million, representing a 12% increase over 2000. Excluding McAfee.com, revenue for the year 2001 was $772 million. Consolidated net loss for the year 2001 was $99.3 million, or $0.72 per share, while consolidated pro forma earnings for the year 2001 were $25.9 million, or $0.15 per share.
In the fourth quarter, the company generated $53 million in cash from operations, ending the quarter with cash and marketable securities totaling $943 million. This number also reflects an expenditure of $112 million during the quarter to retire a portion of the company’s zero coupon convertible debt.
It has been an incredible year for Network Associates and I’m very proud of the team for delivering against the commitments I made a year ago, said George Samenuk, chairman and CEO of Network Associates. In 2001, we returned to profitability and positive cash flow, hired senior executives to lead each of the key regions around the world, and eliminated redundancy across product groups. We have focused on how to best meet the needs and exceed the expectations of all our customers around the world throughout every level of the organization. We still have a lot of work to do but we are well positioned for a great 2002.
Network Associates closed the year as one of the top performing stocks in 2001, with a six-fold price increase that led the S&P MidCap 400 market, as reported on Bloomberg. The company announced today that it will begin trading on the New York Stock Exchange effective February 12, 2002. The first day of trading will follow a bell ringing ceremony by Samenuk from the floor of the exchange. This move is intended to expand the company’s efforts to reach a larger international base of stockholders and further reflects the company’s moves to establish itself as a truly global company.
In addition, the company extended its executive team in the fourth quarter appointing Gene Hodges, formerly president of the McAfee division, as president of Network Associates. Industry veteran Art Matin succeeded Hodges as the new head of McAfee. In addition to his role as chief financial officer (CFO), Steve Richards extended his responsibilities and was named chief operating officer (COO). Former head of the PGP division, Sandra England, was named executive vice president of business development and strategic research. Internationally Michele Fitzpatrick joined the company as head of Europe, Middle East Africa (EMEA), and Wilson Grava joined as head of Latin American.
In December, Samenuk took part in Business Software Alliance’s (BSA’s) CEO Summit, in Washington DC. There he met with senior government officials including Vice President Dick Cheney, U.S. Homeland Security Director Tom Ridge, and Attorney General John Ashcroft to discuss national and cyber security issues. Also in December, England participated in the BSA’s Global Tech Summit along with Special Adviser to the President for CyberSpace Security Richard Clarke, other U.S. and international government officials and senior executives from leading technology companies. The two-day event brought together political and industry leaders to debate and discuss strategies for securing and advancing the quickly growing worldwide networked economy.