Borked virus update hits McAfee bottom line

McAfee's share price took a 10 percent tumble last night, after the company lowered its financial outlook and said it would take an earnings hit after compensating some of its customers.

The security company said it would see a $0.01 to $0.02 per share impact in the second quarter due to the faulty antivirus signature update that affected some customers' Windows PCs last week.

McAfee has already said that it will reimburse home users for the costs of having their PCs repaired. They will also get a free two-year extension to their subscriptions, if their machines were "severely" affected.

Rather cheekily, it's taken the crisis as an up-sell opportunity for its enterprise customers, offering them a complimentary one-year subscription to its Healthcheck Platform; a partially automated consulting service that lets organisations check whether all their systems are secured.

It wasn't just the faulty update that disappointed investors, though. McAfee's Q1 profits were down 30 per cent at $37.6 million, and its Q2 revenue outlook of between $500 million and $520 million did not impress, given Q1's performance of $508 million.