Feeds

Network Associates misses Q4 targets

Cos it stopped 'channel stuffing'

  • alert
  • submit to reddit

Providing a secure and efficient Helpdesk

Network Associates saw Q4 sales miss forecasts after abandoning its channel "stuffing" policy.

The California company reported worse than expected losses of $127.2 million, excluding charges, for the quarter - against earnings of $30.1 million for the same period the previous year. Sales fell 73 per cent to $46.7 million from last year, and down 75 per cent from Q3.

The drop was partly due to NA switching its method of counting sales. It now counts revenues only after products are sold to consumers by distributors, whereas it previously notched up sales as soon as it had shipped them to its distributors.

This, along with admitted inventory backlog, convinced analysts that NA was guilty of "stuffing" its channel, or padding out its results by overselling to its distributors. When the company announced it was changing its sales counting method last month the market reacted by wiping 66 per cent off its share value. There are also a number of lawsuits pending from unhappy investors.

NA freshly appointed CEO George Samenuk promised the company would get back into the black in the second half of the year. "Let me be clear, I will not let this loss continue," Reuters reported him saying. "I intend to scrutinise every aspect of this business." ®

Related Stories

Network Associates shows its true colours
Network Associates warns of $140m loss
CA is 'friendly, open, trusted'

Providing a secure and efficient Helpdesk

More from The Register

next story
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Israeli spies rebel over mass-snooping on innocent Palestinians
'Disciplinary treatment will be sharp and clear' vow spy-chiefs
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.