Rule Change Clips Network Associates’ Stock

Network Associates Inc. shares fell after the leading maker of data security software said its earnings could be reduced by new Securities and Exchange Commission rules on acquisitions. The Santa Clara-based developer’s shares fell $1.75 to close at $58.19 on Nasdaq. Earlier, the shares touched $53.50. Network Associates, which has been on a buying spree for the last year, said it received a letter from the SEC commenting on the company’s acquisition write-offs. New SEC rules regarding write-offs could lower quarterly earnings 2 cents to 3 cents a share, the company said. The company said, however, that it could offset any reduction by cutting costs. “We continue to remain comfortable with 1999 estimates,” said Chief Executive William Larson. Analysts polled by First Call Corp. expect profit of $2.13 a share this year. The company expects to record earnings of 47 cents a share for the quarter ended Dec. 31, up from 29 cents a year ago, which was adjusted for a stock split. Analysts expected 46 cents. The preliminary results don’t include charges related to the acquisitions of Dr. Solomon’s Group and Trusted Information Systems, the company said.