McAfee, Inc. Reports Second Quarter Revenue of $245 Million

SANTA CLARA, Calif., July 28 /PRNewswire-FirstCall/ -- McAfee, Inc. today announced that for the second quarter ended June 30, 2005, consolidated net revenue was $245 million. On a GAAP basis, McAfee's second quarter net earnings were $42 million, or $0.25 per share -- diluted. On a non-GAAP basis, second quarter net earnings were $52 million, or $0.31 per share -- diluted. Pro-forma operating margins for the second quarter improved to 26%, exceeding the stated goal of achieving a 25% pro-forma operating margin in 2005. GAAP operating margins were 19% for the quarter.

Financial Highlights -- New McAfee revenue in the quarter grew by 32% year over year, with bookings increasing by 19% globally. For comparison purposes, new McAfee revenue excludes the Magic and Sniffer businesses sold in 2004 and the McAfee Research business sold in April 2005. -- New McAfee demonstrated double-digit year over year growth across all regions, with revenue increasing by 28% in North America, 20% in Europe, Middle East and Africa (EMEA), 53% in APAC, 117% in Japan and 83% in Latin America. -- Overall, McAfee consumer revenue in the quarter grew by 69% year over year to $116 million. Revenue from the online consumer services in the quarter grew by 90% year over year. -- The McAfee online consumer services added 2.1 million net new subscribers in the quarter, bringing the total number of unique subscribers to more than 13.1 million. -- McAfee revenue from small and medium sized businesses (SMBs) increased 15% year over year with bookings increasing by 16%. -- Deferred revenue grew by $27 million in the quarter to end the quarter at $641 million. -- McAfee ended the second quarter with cash and cash equivalents and investments of $1.073 billion. During the quarter McAfee generated approximately $103 million in cash from operations on a GAAP basis. Financial Outlook -- McAfee expects revenue for the third quarter of 2005 to be between $225 million and $245 million and non-GAAP net earnings of $0.28 per share at the middle of the range. -- McAfee is raising its full year 2005 revenue guidance to between $980 million and $1 billion and non-GAAP net earnings guidance to between $1.20 and $1.25 per share.

"The McAfee team has driven exceptional company performance in the second quarter by strategically growing our business globally across all segments," said George Samenuk, chairman and chief executive officer of McAfee, Inc. "Our strategy of delivering proven, best-of-breed security solutions to global customers and business partners of all sizes continues to gain traction as demonstrated by the strong results in the first half of this year."

Business Highlights -- In the quarter, McAfee acquired Wireless Security Corporation, a privately held company that offers innovative Wi-Fi security solutions to protect home and small business wireless networks from unauthorized access to a wireless network, its contents, or Internet service. -- Richard Decker joined the company in July as chief information officer. In this role he is responsible for all information technology activities, including leading the future direction of IT as a business driver. -- McAfee has continued its commitment to deliver solutions that enable proactive protection for customers of all sizes. Products and enhancements introduced in the quarter include: -- McAfee LinuxShield(TM) and McAfee NetShield(R) for NetWare anti- virus solutions, providing best-in-class virus protection to Open Enterprise Server, the latest versions of SUSE LINUX Enterprise Server-based operating systems and Novell NetWare. Both products also achieved Novell Yes! Certification. -- Streaming Updates for McAfee SpamKiller(R) and McAfee WebShield(R) Appliances, providing proactive spam updates every five to ten minutes. -- McAfee Entercept support for Red Hat Enterprise Linux 3, offering host-based intrusion prevention for Linux users. -- McAfee Foundstone Professional Services announced WSDigger 1.0, a new free open source tool designed to identify vulnerabilities in web services implementations. The tool automates black box web services security testing and is the first tool of its kind. -- McAfee partnered with Fujitsu to enhance McAfee Entercept to protect Fujitsu PRIMEPOWER (TM) servers. The partnership will provide advanced system security protection on mission-critical computing platforms. -- The McAfee consumer business expanded its partnership base, including: -- Scotia Bank in Canada is now offering a product bundle of McAfee VirusScan and McAfee Personal Firewall Plus to its on-line banking customers. -- Gateway/eMachines expanded its relationship with McAfee to include shipments of McAfee Anti-Spyware and McAfee VirusScan in the UK market. -- In the quarter, Toshiba began shipping McAfee consumer online services in North America. -- Hawaiian Telecom, a unit of Verizon Communications, began offering McAfee Internet Security Suite as part of their DSL offering. -- Willcom, the number one remote card manufacturer in Japan, will include a trial version of McAfee VirusScan with its "Air-Edge" remote modem card. -- Netscape now includes McAfee VirusScan as an opt-in offering in the new browser they released in May. -- OpenWave Systems partnered with McAfee to enable operators to provide an anti-virus offering to mobile subscribers across the highest risk messaging and data services. -- Bitfone now will offer an embedded scanning engine as part of their Device Management solution, allowing mobile operators to detect, recover from and prevent security threats to mobile phone software such as viruses, worms, auto-dialers, and spyware. -- Through the strategic partnership with NTT DoCoMo, McAfee VirusScan mobile technology has been deployed across 17 handset models from six different manufacturers. As of June 30, over nine million handsets have been shipped integrated with the McAfee VirusScan mobile technology. -- McAfee continued to enhance its channel programs in the quarter with: -- The addition of 1,800 members in the McAfee SecurityAlliance global partner program since the launch in October 2004. McAfee has more than 260 ElitePartners and PremierPartners globally. -- The launch of McAfee SecurityAlliance eXchange (MAX), an enhanced partner website, offers new functionality and valuable resources for McAfee SecurityAlliance members. The new website offers partners access to pre-qualified leads, renewal data and order status information. It also serves as a collaboration platform for partners to manage McAfee opportunities and to communicate directly with the McAfee channel and sales account teams. -- The introduction of a new partner rewards program in North America that provides additional compensation to high revenue producing partner representatives. The program was first rolled out in the EMEA region in the fourth quarter of 2004 and in the second quarter of 2005 increased deal registration by 30%. -- Expanded distribution of its intrusion prevention technology to the SMB reseller networks of Ingram Micro US and TechData US. With more than 1,000 new solution providers available in North America to offer these products to SMB's across the country, McAfee is eager to meet the ever-evolving needs of this market with best of breed IT security solutions. -- McAfee products received industry accolades in the quarter. For example: -- For the sixth straight quarter, McAfee IPS was named the worldwide revenue market share leader for network based in-line intrusion prevention for Q1 2005 by Infonetics Research. McAfee has been first or tied for first in the network IPS market since Q4 of 2003. -- eWeek conducted a review of anti-spyware products and tested McAfee VirusScan Enterprise 8.0i with the anti-spyware module against McAfee's two largest anti-virus competitors. eWeek found the McAfee solution to have "vastly superior anti-spyware detection and cleaning capabilities, combined with the best management and reporting tools among these products, making it the only integrated solution we can recommend as a front-line anti-spyware defense." -- McAfee was recognized as a Leader in the June 2005 report, "Forrester Wave: Client Security Suites: Q2 '05," for its full client security portfolio, robust management features and strong architecture. According to the report, McAfee offers the most comprehensive client security solution and was the only company in the report that had full host-based intrusion prevention (IPS). McAfee was also the only vendor to receive Leader placement across all three of the Forrester categories for the Waves. -- McAfee was awarded the Aberdeen seal for "2005 Best Security Practices" for helping a major security solution provider operate at best-in-class security levels. McAfee was recognized in the Aberdeen "Security Best Practices Report" for making security a strategic initiative for itself and its customers. -- McAfee achieved a significant IPS milestone in the quarter, announcing that the company has more than 1,000 unique IPS customers, a milestone that validates McAfee's global market leadership, execution and continued momentum of IPS customer adoption, and represents the broadest IPS deployment in the industry. -- McAfee delivered key customer wins in the quarter, including: -- Tyco selected McAfee Active Virus Defense as its company-wide anti- virus standard for workstations and servers. -- SAP, the world's leading provider of business software solutions, selected McAfee(R) Active VirusScan(R) for multi-layered protection against malicious threats. -- The Children's Hospital of Philadelphia purchased McAfee IntruShield to protect against external threats. -- In EMEA, Unisys Deutschland GmbH and Siemens Business Services selected McAfee Active Virus Defense to provide comprehensive protection. -- In Latin America, TECNOLOGICO DE MONTEREY selected McAfee Foundstone, Telgus selected McAfee Entercept, and SIMAN selected McAfee WebShield to protect their systems and networks. Conference Call Information -- The company will host a conference call today at 1:30 p.m. Pacific, 4:30 p.m. Eastern to discuss its quarterly results. Participants should call 888-790-2935 (U.S.) or 517-623-4381 (international), pass code: MFE. -- Attendees should dial in at least 15 minutes prior to the conference call. -- A replay of the call will be available until August 26, 2005 by calling 800-839-0815 (U.S.), or 203-369-3091 (international). -- A Web cast of the call may also be found on the Internet at: http://www.mcafee.com/earnings. About McAfee, Inc.

McAfee, Inc., headquartered in Santa Clara, California and the global leader in Intrusion Prevention and Security Risk Management, delivers proactive and proven solutions and services that secure systems and networks around the world. With its unmatched security expertise and commitment to innovation, McAfee empowers home users, businesses, the public sector, and service providers with the ability to block attacks, prevent disruptions, and continuously track and improve their security. http://www.mcafee.com/.

NOTE: McAfee, VirusScan, ProtectionPilot, Virex, Foundstone, IntruShield, LinuxShield and ePolicyOrchestrator are registered trademarks or trademarks of McAfee, Inc. and/or its affiliates in the US and/or other countries. The color red in connection with security is distinctive of McAfee brand products. All other registered and unregistered trademarks herein are the sole property of their respective owners.

Disclosure Statements

Non-GAAP net earnings and pro-forma operating margin exclude amortization of purchased technology and intangibles expense, compensation charges relating to employee stock options, retention bonuses and severance payments related to acquisitions, gain or loss on sale of assets and technology, restructuring charges, divestiture expense, in process research and development and reimbursements associated with the transition services agreement with Network General; non-GAAP net earnings assume an effective tax rate of 25%. McAfee's management uses non-GAAP net earnings and pro-forma operating results to evaluate the company's operating performance and believes that excluding these items enhances management's and its investors' ability to evaluate McAfee's comparable historical operating results. McAfee's management believes that all disclosures are adequate to make the information presented not misleading.

McAfee is unable to provide a non-GAAP to GAAP reconciliation of projected third quarter and full year 2005 net earnings and net earnings per share. Among other reasons, such amounts are not known or cannot be reasonably estimated at this time or, in the case of stock options, the amount of any compensation charge (credit) related to stock options depends on changes in the trading price of McAfee's common stock.

McAfee estimates that every $1 increase, if any, in its stock price from the price on June 30, 2005, will increase its third quarter stock-based compensation charge by approximately $0.5 million, assuming that outstanding options subject to variable accounting remain constant. With respect to the other items, it is estimated that (i) for the third quarter of 2005 and the remainder of 2005 restructuring charges will be in the range of $0.1 million to $2.0 million based on decisions made prior to the first quarter of 2005 for which the actions will occur in 2005 but excluding additional restructuring activities that may be taken after June 30, 2005, (ii) for the third quarter 2005 and the remainder of 2005 amortization expense will be approximately $2.7 million and $5.4 million on intangibles and trademarks, and $3.9 million and $7.8 million on purchased technology and (iii) for the third quarter of 2005 and the remainder of 2005 other payments related to the IntruVert, Foundstone and Wireless Security Corporation acquisitions will be approximately $1.2 million and $2.1 million. The estimate for amortization expense does not include any future impairment of intangible assets with respect to previous acquisitions nor does it include any intangible assets that may be acquired through future acquisitions.

Forward-Looking Statements

The foregoing contains forward-looking statements which include those regarding expected operating results for the third quarter of 2005 and full- year 2005; McAfee's continued commitment to the channel and its channel partners; new product introductions and related product benefits; estimates for certain charges for the third quarter of 2005 and full year of 2005; and anticipated benefits of its partnerships. Actual results could vary perhaps materially and the expected results may not occur. McAfee may not succeed in its efforts to grow its business, build upon its technology leadership or capture market share, notwithstanding related commitment or related investment. The company may not benefit from its strategic alliances or partnerships as anticipated, customers may not respond as favorably as anticipated to the company's product or technical support offerings, or the company may not satisfactorily anticipate or meet its customers' needs or expectations. McAfee's business, including its sales force and internal finance and IT operations, may be disrupted or otherwise strained due to company cost saving measures. Actual results are also subject to a number of other factors, including customer and distributor demand fluctuations and macro and other economic conditions both in the U.S. and internationally; successful sales force coordination and execution; attracting and retaining qualified sales force and other personnel; and successful development, introduction and adoption by customers of new products and enhancements that meet customer demand. The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in McAfee's filings with the SEC including its annual report on form 10-K for the year ended December 31, 2004 and its quarterly reports filed on Form 10-Q.

Introduction to Tables

Non-GAAP net earnings and pro-forma operating margin exclude amortization of purchased technology and intangibles expense, compensation charges relating to employee stock options, retention bonuses and severance payments related to acquisitions, gain or loss on sale of assets and technology, restructuring charges, divestiture expense, in process research and development and reimbursements associated with the transition services agreement with Network General.

McAFEE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (Unaudited) June 30, December 31, 2005 2004 Assets: Cash and marketable securities $1,072,905 $924,681 Restricted cash 624 617 Accounts receivable, net 95,656 137,520 Prepaid expenses, income taxes and other current assets 112,262 103,687 Property and equipment, net 87,776 91,715 Deferred taxes 440,108 421,063 Goodwill, intangibles and other long term assets, net 554,068 558,393 Total assets $2,363,399 $2,237,676 Liabilities: Accounts payable $26,358 $32,891 Accrued liabilities 234,311 197,368 Deferred revenue 641,461 601,373 Accrued taxes and other long term liabilities 181,942 204,796 Total liabilities 1,084,072 1,036,428 Stockholders' equity: Common stock 1,668 1,623 Treasury stock (47,351) -- Additional paid-in capital 1,226,584 1,178,855 Deferred stock-based compensation (814) (1,777) Accumulated other comprehensive income 26,386 27,361 Retained earnings (Accumulated deficit) 72,854 (4,814) Total stockholders' equity 1,279,327 1,201,248 Total liabilities and stockholders' equity $2,363,399 $2,237,676 McAFEE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2005 2004 2005 2004 Net revenue $245,382 $225,678 $481,109 $444,756 Cost of net revenue 32,970 34,288 67,777 68,087 Amortization of purchased technology 3,886 3,276 7,736 6,669 Gross profit 208,526 188,114 405,596 370,000 Operating costs: Research and development (1) 44,884 44,346 83,114 89,725 Marketing and sales (2) 76,137 96,114 147,321 189,072 General and administrative (3) 29,542 34,438 61,271 60,517 Reimbursement from transition services agreement (31) -- (359) -- (Gain) loss on sale/disposal of assets and technology (970) 274 (711) (45,404) Litigation reimbursement -- (5,890) -- (24,991) Amortization of intangibles 3,705 3,516 7,233 7,089 Restructuring charges (4) 3,676 824 5,972 3,160 In Process R&D 4,000 -- 4,000 -- Restatement costs -- -- -- (250) Divestiture expense 201 803 789 803 Acquisition retention bonuses and severance 1,393 630 2,856 2,040 Total operating costs 162,537 175,055 311,486 281,761 Income from operations 45,989 13,059 94,110 88,239 Interest and other income, net (4) 4,584 3,047 8,896 7,786 Interest expense on convertible debt -- (2,137) -- (2,878) Gain on sale of securities -- -- -- 246 Income before provision for income taxes 50,573 13,969 103,006 93,393 Provision for income taxes 8,875 3,769 25,338 25,223 Net income $41,698 $10,200 $77,668 $68,170 Net income per share - basic $0.25 $0.06 $0.48 $0.42 Net income per share - diluted (5) $0.25 $0.06 $0.46 $0.40 Shares used in per share calculation - basic 163,560 160,313 163,240 161,800 Shares used in per share calculation - diluted 167,379 163,925 167,344 184,705 (1) Includes stock-based compensation (benefits) charges of $1,264 and $258 for the three months ended June 30, 2005 and 2004, respectively and $(1,239) and $1,572 for the six months ended June 30, 2005 and 2004, respectively. (2) Includes stock-based compensation (benefits) charges of $444 and $51 for the three months ended June 30, 2005 and 2004, respectively and $(291) and $687 for the six months ended June 30, 2005 and 2004, respectively. (3) Includes stock-based compensation charges of $660 and $131 for the three months ended June 30, 2005 and 2004, respectively and $606 and $407 for the six month ended June 30, 2005 and 2004, respectively. (4) Interest Expense related to restructuring of $142 and $288 for the three and six months ended June 30, 2004 has been reclassifed out of Interest and other income into Restructuring charges in 2004 to conform with 2005 presentation. (5) In computing net income per share on a diluted basis for the six months ended June 30, 2004 net income has been increased by $6,015 for the after-tax amount of interest expense recognized in the period associated with the dilutive convertible securities. The shares used in net income per share on a diluted basis includes an additional 19.1 million shares in the six months ended June 30, 2004, that would have been outstanding if the diluted securities had been converted as of the beginning of the period. The convertible debt was redeemed on August 20, 2004. McAFEE, INC. AND SUBSIDIARIES PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2005 2004 2005 2004 Net revenue $245,382 $225,678 $481,109 $444,756 Cost of net revenue 32,970 34,288 67,777 68,087 Amortization of purchased technology -- -- -- -- Gross profit 212,412 191,390 413,332 376,669 Operating costs: Research and development 43,620 44,088 84,353 88,153 Marketing and sales 75,693 96,063 147,612 188,385 General and administrative 28,882 34,307 60,665 60,110 Reimbursement from transition services agreement -- -- -- -- (Gain) loss on sale/disposal of assets and technology -- -- -- -- Litigation reimbursement -- -- -- -- Amortization of intangibles -- -- -- -- Restructuring charges (1) -- -- -- -- In Process R&D -- -- -- -- Restatement costs -- -- -- -- Divestiture expense -- -- -- -- Acquisition retention bonuses and severance -- -- -- -- Total operating costs 148,195 174,458 292,630 336,648 Income from operations 64,217 16,932 120,702 40,021 Interest and other income, net (1) 4,584 3,047 8,896 7,786 Interest expense on convertible debt -- -- -- -- Gain on sale of securities -- -- -- -- Income before provision for income taxes 68,801 19,979 129,598 47,807 Provision for income taxes 17,200 4,995 32,400 11,952 Pro forma net income $51,601 $14,984 $97,198 $35,855 Net income per share - diluted $0.31 $0.08 $0.58 $0.19 Shares used in per share calculation - diluted (2) 167,379 183,017 167,344 184,705 (1) Interest Expense related to restructuring of $142 and $288 for the three and six months ended June 30, 2004 has been reclassifed out of Interest and other income into Restructuring charges in 2004 to conform with 2005 presentation. (2) The above per share calculations treat outstanding convertible debt on an as-converted basis, resulting in an increase of 19.1 million shares for the three and six months ended June 30, 2004. The convertible debt was redeemed on August 20, 2004. The accompanying reconciliation of pro forma condensed consolidated statements of income to the condensed consolidated statements of income is an integral part of the above pro forma financial information. The Company believes that the above pro forma information is an additional meaningful measure of operating performance. However, this pro forma information will necessarily be different from comparable information provided by other companies and should not be used as an alternative to our operating results and other financial information as determined under accounting principles generally accepted in the United States of America. McAFEE, INC. AND SUBSIDIARIES RECONCILIATION OF CONDENSED CONSOLIDATED PRO FORMA STATEMENTS OF INCOME TO THE CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2005 2004 2005 2004 McAfee, Inc. Pro forma net income $51,601 $14,984 $97,198 $35,855 Provision for income taxes 17,200 4,995 32,400 11,952 McAfee, Inc. pro forma income before provision for income taxes 68,801 19,979 129,598 47,807 Amortization of purchased technology (3,886) (3,276) (7,736) (6,669) Stock compensation (charge) benefit (2,368) (440) 924 (2,666) Reimbursement from transition services agreement 31 -- 359 -- Gain (loss) on sale/disposal of assets and technology 970 (274) 711 45,404 Litigation reimbursement -- 5,890 -- 24,991 Amortization of intangibles (3,705) (3,516) (7,233) (7,089) Restructuring charges (3,676) (824) (5,972) (3,160) In Process R&D (4,000) -- (4,000) -- Restatement costs -- -- -- 250 Divestiture expense (201) (803) (789) (803) Acquisition retention bonuses and severance (1,393) (630) (2,856) (2,040) Interest expense on convertible debt -- (2,137) -- (2,878) Gain on sale of securities -- -- -- 246 McAfee, Inc. income before provision for income taxes $50,573 $13,969 $103,006 $93,393 Provision for income taxes 8,875 3,769 25,338 25,223 McAfee, Inc. Consolidated net income $41,698 $10,200 $77,668 $68,170 McAfee, Inc. Revenue by Product Family (in thousands) Q2'05 Q1'05 Q4'04 McAfee $245,207 100% $234,051 99% $242,469 99% McAfee Corporate $128,963 53% $132,924 56% $150,937 62% - Enterprise 72,072 29% 72,461 31% 92,307 38% - SMB 56,891 23% 60,462 26% 58,631 24% McAfee Consumer $116,243 47% $101,127 43% $91,532 37% - McAfee.com 88,582 36% 75,041 32% 61,789 25% - Retail 27,661 11% 26,086 11% 29,742 12% Divested Business - NAI Labs 175 0% 1,676 1% 1,684 1% - Sniffer -- 0% -- 0% -- 0% - Magic -- 0% -- 0% -- 0% - PGP -- 0% -- 0% -- 0% Total MFE $245,382 100% $235,727 100% $244,153 100% Q3'04 Q2'04 Q1'04 McAfee $209,910 95% $185,411 82% $172,613 79% McAfee Corporate $118,198 53% $116,458 52% $125,633 57% - Enterprise 63,758 29% 67,067 30% 59,224 27% - SMB 54,440 25% 49,391 22% 66,409 30% McAfee Consumer $91,712 41% $68,953 31% $46,980 21% - McAfee.com 56,518 26% 46,514 21% 41,524 19% - Retail 35,194 16% 22,439 10% 5,456 2% Divested Business - NAI Labs 1,536 1% 1,830 1% 1,360 1% - Sniffer 10,187 5% 38,438 17% 42,253 19% - Magic -- 0% -- 0% 2,850 1% - PGP -- 0% -- 0% -- 0% Total MFE $221,633 100% $225,679 100% $219,077 100% McAfee, Inc. Bookings by Product Family (in thousands) Q2'05 Q1'05 Q4'04 McAfee $317,466 100% $281,041 100% $315,579 100% McAfee Corporate $177,805 56% $148,938 53% $190,682 60% - Enterprise 101,251 32% 81,596 29% 119,678 38% - SMB 76,554 24% 67,342 24% 71,004 22% McAfee Consumer $139,661 44% $132,103 47% $124,897 40% - McAfee.com 113,866 36% 100,611 36% 81,923 26% - McAfee Retail 25,795 8% 31,492 11% 42,974 14% Divested Business -- 0% -- 0% -- 0% - Sniffer -- 0% -- 0% -- 0% - Magic -- 0% -- 0% -- 0% - PGP -- 0% -- 0% -- 0% Total MFE $317,466 100% $281,041 100% $315,579 100% Q3'04 Q2'04 Q1'04 McAfee $250,883 99% $266,010 87% $222,865 86% McAfee Corporate $133,042 53% $161,662 53% $135,698 52% - Enterprise 70,925 28% 95,709 31% 64,472 25% - SMB 62,117 25% 65,953 21% 71,226 27% McAfee Consumer $117,841 46% $104,348 34% $87,167 34% - McAfee.com 82,071 32% 73,402 24% 62,041 24% - McAfee Retail 35,770 14% 30,946 10% 25,126 10% Divested Business 1,511 1% 41,362 13% 36,570 14% - Sniffer 1,511 1% 41,427 13% 33,996 13% - Magic -- 0% (65) 0% 2,574 1% - PGP -- 0% -- 0% -- 0% Total MFE $252,394 100% $307,372 100% $259,435 100%