UPDATE 2-McAfee beats forecasts on higher deal size

* Q2 EPS ex-items 60 cents vs Street view 57 cents

* Q2 revenue $469 million vs Street view $467 million

* To buy privately held MX Logic for $140 million

* Signs more large deals during the quarter

* Shares roughly flat in extended trading (Adds background, details on earnings, CEO comment)

By Jim Finkle

LAS VEGAS, July 30 (Reuters) - McAfee Inc (MFE.N), the No. 2 security software maker, reported a higher-than-expected quarterly profit as businesses signed larger deals to take advantage of discounts.

The results contrasted sharply with the lower-than-expected earnings of its bigger rival, Symantec Corp (SYMC.O), which also issued a forecast that was below analysts' views.

Symantec blamed its problems on the recession, saying businesses were only buying as much software as they needed, instead of taking advantage of discounts for bulk orders to prepare for future needs.

But McAfee said the number of its large deals increased during the quarter as more customers opted for discounts.

"Our momentum continues to grow and we continue to win market share," Chief Executive Dave DeWalt said on a conference call.

McAfee forecast current quarter profit, excluding items, of 58 cents to 62 cents per share, on revenue of $475 million to $495 million. Analysts had expected profit of 59 cents a share on revenue of $477 million, according to Reuters Estimates.

Shares of the Santa Clara, California-based company were roughly unchanged from their NYSE close of $42.56.

McAfee also said it would buy privately held MX Logic, a provider of web-based email, web-security and archiving services, for about $140 million in cash.

It posted a profit, excluding items, of 60 cents per share in the second quarter ended June 30, beating the average analyst forecast of 57 cents, according to Reuters Estimates.

Revenue rose 18 percent to $469 million, slightly ahead of the analysts' estimates of $467 million.