SANTA CLARA, Calif., Dec. 21 /PRNewswire-FirstCall/ -- McAfee, Inc.
(NYSE: MFE) today announced that it has filed with the Securities and
Exchange Commission its Annual Report on Form 10-K for the year ended
December 31, 2006, as well as Quarterly Reports on Form 10-Q for the second
and third quarters of 2006 and the first, second and third quarters of
2007. McAfee's periodic filings with the SEC are now current.
The company had previously announced that the amount of the pre-tax
non-cash stock based compensation charges to be reflected in its financial
statements was likely to be between $100 million and $150 million. To
correct past accounting for stock options, the company has recorded an
additional $137.4 million of pre-tax, non-cash stock based compensation
charges for the years 1995 through 2005. Approximately 98 percent of these
pre-tax non-cash charges were recorded in fiscal years 2004 and prior.
These charges stemmed primarily from annual merit grants, grants made to
new hires and modifications to employee option agreements after termination
of employment. The restatement also includes corrections of other errors
not related to stock options.
The filing of these reports follows the previously announced review of
McAfee's historic stock option granting practices by a special committee of
independent directors, with the assistance of independent counsel and
forensic accountants. The recently filed 2006 Form 10-K restates the
originally filed consolidated financial statements for fiscal years 2005
and 2004, our selected financial data for the fiscal years 2005 through
2002 and our quarterly financial data for the first quarter of 2006 and all
the quarters of 2005. In addition, 2007 and 2006 quarterly results have
been updated from amounts originally included in our quarterly press
releases.
McAfee intends to consider initiating a share repurchase program.
Purchases under a board approved stock repurchase plan would be subject to
a review of the circumstances in place at the time, and would not be
implemented until after the company has announced its results for the
quarter and year ended December 31, 2007.
McAfee is now no longer subject to the New York Stock Exchange's
procedures for late annual filers.
In a related event, the company has reached a tentative settlement with
the plaintiffs in the pending federal and state derivative securities
lawsuits related to historical stock option practices. The company has
accrued $13.8 million in its second quarter 2006 financial statements
related to expected payments pursuant to the tentative settlement and
expects to complete the documentation and the required approvals in late
December 2007 or early in the first quarter of 2008.
Additional financial information relating to the restatement of prior
periods and copies of the company's filings are available on McAfee's
investor relations website at http://investor.mcafee.com.
The company will host a previously scheduled conference call to report
its fourth quarter 2007 earnings results on Thursday, February 7, 2008, at
4:30 p.m. Eastern time.
About McAfee, Inc.
McAfee Inc., the leading dedicated security technology company,
headquartered in Santa Clara, California, delivers proactive and proven
solutions and services that secure systems and networks around the world.
With its unmatched security expertise and commitment to innovation, McAfee
empowers home users, businesses, the public sector, and service providers
with the ability to block attacks, prevent disruptions, and continuously
track and improve their security. http://www.mcafee.com.
(C) 2007 McAfee, Inc. All rights reserved.
This news release contains forward-looking statements about McAfee's
common stock repurchase program and the tentative settlement of the federal
and state derivative securities lawsuits. The statements are based on
management's current expectations, estimates and projections, are not
guarantees of future performance, and are subject to certain risks,
uncertainties and other factors, some of which are beyond the company's
control and are difficult to predict, including, but not limited to,
changes in the market price of the company's common stock, changes in the
company's financial results, financial condition and cash requirements, the
risk we do not reach final resolution with respect to the tentative
settlement or that the court does not approve the tentative settlement
reached by the company and the plaintiffs in the federal and state
derivative securities lawsuits or that our insurers do not consent and
contribute to the settlement. You should not place undue reliance on these
forward-looking statements, which speak only as of the date of this press
release. McAfee undertakes no obligation to update publicly any
forward-looking statements, whether as a result of new information, future
events or otherwise.
SOURCE McAfee, Inc.
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Related links:
http://www.mcafee.com
http://investor.mcafee.com
CONTACT:
Investors, Kelsey Doherty, +1-203-321-1239,
kelsey_doherty@mcafee.com, or Media, Michael Busselen,
+1-408-346-3385, michael_busselen@mcafee.com, both of McAfee,
Inc.
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