Network Associates’ Stock Plunges Amidst Earnings Concerns
- By Scott Bekker
- December 27, 2000
its warning late Tuesday that it expects to lose somewhere between $130 and
$140 million in the fourth quarter of 2000, Network Associates Inc.
stock plunge in early morning trading on Wednesday. During the morning session,
shares of the anti-virus software maker dropped nearly 70 percent to $3 ¾,
resulting in a loss of almost $8 per share.
Following the close of the market on Tuesday, Network
Associates became the latest in a long line of technology companies to warn of
lower revenue earnings. The Santa Clara, Calif.-based company blamed the
shortfall on the overall economic slowdown, not its own business. It also said
key distributors cut inventory levels because of concerns over a broader
While making the announcement, Network Associates also
revealed major changes are in the works, as its CEO, COO, and CFO are all
stepping down. A new CEO is expected to be named in 30 days.
Overall, Network Associates expects revenues of $55 to $65
million for the fourth quarter of 2000. As a point of reference, Network
Associates posted revenues of $218.1 million in the year-earlier period. – Jim Martin
Scott Bekker is editor in chief of Redmond Channel Partner magazine.