UPDATE 2-McAfee profit rises, company sees charge

(Adds analyst comment, breakdown on earnings.)

BOSTON, July 26 (Reuters) - McAfee Inc.(MFE.N) said on Thursday its quarterly profit rose 57 percent on higher sales of its computer security software to consumers, according to preliminary figures.

But it expects to take between $100 million and $150 million in noncash charges related to errors it made in accounting for past stock option grants over the course of a decade. The charges are not included in the earnings.

Auditors are still reviewing McAfee's books to determine the financial impact of restatements, said the world's No. 2 maker of computer security software.

McAfee's profits are growing as customers have embraced its suites of security software that handle multiple tasks and sell for a higher price than individual titles that deal with only one particular security issue such as virus protection or spyware.

"They have a pretty strong product cycle," said Friedman, Billings, Ramsey Group analyst Daniel Ives.

Second-quarter net income rose to $49.4 million, or 30 cents per share, from $31.36 million, or 19 cents per share, a year ago.

Revenue rose to $314 million from $277.4 million.

Corporate sales rose 9 percent to $182 million, driven primarily by the company's line of Total Protection software suites. It signed 11 contracts worth more than $1 million, the largest number of mega-deals in five years.

Consumer sales climbed 19 percent from the prior year to $132 million. Its top sellers are bundled products - Internet Security Suite, VirusScan Plus, Total Protection and PC Protection Plus.

The company also said it expects to post third-quarter per-share profit excluding items of 36 cents to 41 cents on revenue of $305 million to $325 million.

Analysts expected it to report profit of 39 cents on revenue of $315.5 million for the third-quarter, according to Reuters Estimates.

It said it expected to report full-year per-share profit excluding items of $1.61 to $1.71 on revenue of $1.26 billion to $1.3 billion.

Analysts expected it to report profit of $1.61 per share on revenue of $1.27 billion, according to Reuters Estimates.

Shares in the Santa Clara, California company were quoted at $34.25 in extended trading, down from their close of $34.85 on the New York Stock Exchange.