08/19/96 NEW HANDS ON QUARTERDECK?

NEW HANDS ON QUARTERDECK?

The floor seems to be collapsing under Quarterdeck (QDEK), a pioneer developer of software for personal computers and the Internet. The stock has been in a downdraft since December, skidding from 39 to 6 3/4 on Aug. 6. Analysts have turned wary about the company since it reported disappointing third-quarter results: a loss of 68 cents a share, vs. a profit of 12 cents a year ago. And revenues dropped to $16 million from $28.1 million.
But several California investment managers have been buying: They believe the company, at its current price, has attracted an aggressive suitor, McAfee Associates (MCAF), a maker of antivirus and networking software. McAfee tried to acquire Cheyenne Software in April for $1 billion. It withdrew its bid for Cheyenne in May after Cheyenne refused to negotiate. Now, McAfee is said to be poised to go after Quarterdeck, whose products for PC and Internet software ``fit quite perfectly the direction that McAfee wants to go,'' says one analyst, who puts the buyout value at 17 a share.
Quarterdeck has been increasing its bet on its Internet-related products, which accounted for more than half of its revenues in the third quarter. The company specializes in providing utility solutions to the Windows market and offers a line of powerful next-generation Internet tools. McAfee Chief Financial Officer Terry Duryea says the company is ``considering various types of corporate relationships.'' But he declined comment on the Quarterdeck rumors. Quarterdeck didn't return calls.
BY GENE G. MARCIAL