UPDATE 3-McAfee revenue misses forecast, shares fall

NEW YORK, Oct 29 (Reuters) - McAfee Inc (MFE.N), the No. 2 U.S. security software maker, reported quarterly revenue that missed Wall Street estimates as sales to consumers grew in their slowest rate in almost two years.

The company's shares fell 5.8 percent in after-hours trade as the revenue shortfall, which came a day after strong earnings and revenue from bigger rival Symantec Corp (SYMC.O), overshadowed a higher-than-expected profit.

"People are used to McAfee beating forecasts. When they don't, investors are disappointed," said Jefferies & Co. analyst Katherine Egbert.

Revenue rose 18 percent to $485 million, below the $487 million forecast, on average, by analysts.

Revenue from McAfee's consumer software rose 8 percent from a year earlier to $177 million. It was the slowest rate of growth since the fourth quarter of 2007.

Its corporate business reported a 25 percent increase in quarterly revenue to $308 million. That was buoyed by revenue from its November 2008 acquisition of Secure Computing.
McAfee reported profit, excluding items, of 62 sales Inflatable Slide cents per share, for the third quarter, above the average forecast of 60 cents, according to Thomson Reuters I/B/E/S

DeWalt said that corporate sales were the weakest part of McAfee's business during the quarter. Companies were buying anti-virus software to protect fewer PCs because recessionary cutbacks have left them with fewer workers who use computers.

CONSUMER BUSINESS

Investors closely watch sales of consumer software because analysts say that such products are more profitable than programs for businesses. The company does not disclose the profits of each division.