UPDATE 3-McAfee revenue misses forecast, shares fall

* Q3 revenue $485 million vs Street view $487 million

* Revenue miss comes as rival Symantec beats Street view

* Q3 EPS ex-items 62 cents vs Street view 60 cents

* Shares fall 5.8 percent (Adds comments from analyst, CEO. Updates shares)

By Jim Finkle

NEW YORK, Oct 29 (Reuters) - McAfee Inc MFE.N, the No. 2 U.S. security software maker, reported quarterly revenue that missed Wall Street estimates as sales to consumers grew at their slowest rate in almost two years.

The company's shares fell 5.8 percent in after-hours trade as the revenue shortfall, which came a day after strong earnings and revenue from bigger rival Symantec Corp (SYMC.O), overshadowed a higher-than-expected profit.

The revenue shortfall took the Street by surprise as McAfee's results have rarely disappointed investors since Chief Executive Dave DeWalt took the company's helm. He was recruited in 2007 to turn around the software maker after it had become embroiled in a high-profile accounting scandal.

"People are used to McAfee beating forecasts. When they don't, investors are disappointed," said Jefferies & Co. analyst Katherine Egbert.

McAfee reported profit, excluding items, of 62 cents per share, for the third quarter, above the average forecast of 60 cents, according to Thomson Reuters I/B/E/S.

Revenue rose 18 percent to $485 million, below the $487 million forecast, on average, by analysts.

Revenue from McAfee's consumer software rose 8 percent from a year earlier to $177 million. It was the slowest rate of growth since the fourth quarter of 2007.

Its corporate business reported a 25 percent increase in quarterly revenue to $308 million. That was buoyed by revenue from its November 2008 acquisition of Secure Computing.

DeWalt said that corporate sales were the weakest part of McAfee's business during the quarter. Companies were buying anti-virus software to protect fewer PCs because recessionary cutbacks have left them with fewer workers who use computers.

CONSUMER BUSINESS

Investors closely watch sales of consumer software because analysts say that such products are more profitable than programs for businesses. The company does not disclose the profits of each division.

McAfee also said that it has agreed to pay No. 2 PC maker Dell Inc (DELL.O) to recommend its security software to its customers worldwide for at least the next two years. McAfee has the right to extend for a third year.

"This relationship is very profitable for McAfee," said DeWalt, who has negotiated deals with other PC makers that have boosted sales of consumer software in previous quarters.

Those sales grew at a year-on-year rate of 13 percent in the second quarter and 12 percent in the first quarter.

DeWalt said in an interview that he was not concerned about the slowdown in consumer revenue, saying the bulk of it was from sales made long before the third quarter.

Accounting rules require McAfee to book revenue from each consumer sale over 36 months. Revenue reported in any one quarter is "a backward looking indicator," DeWalt said.

Consumer bookings grew 12.5 percent during the third quarter, DeWalt said, which was at a faster clip than in the second quarter. He declined to provide the second-quarter growth rate.

The company forecast fourth-quarter profit, excluding items, of 61 to 65 cents per share on revenue of $505 million to $525 million. Analysts expect McAfee to earn 63 cents per share on revenue of $507 million.

Net income fell 25 percent to $37 million, or 23 cents per share, from $49 million, or 31 cents, a year earlier.

In after-hours trading, McAfee shares fell 5.8 percent to $41.20 from their New York Stock Exchange close of $43.75. (Reporting by Jim Finkle, editing by Leslie Gevirtz and Steve Orlofsky)