Feeds

Network Associates misses Q4 targets

Cos it stopped 'channel stuffing'

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

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'

Secure remote control for conventional and virtual desktops

More from The Register

next story
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.