Check Point beats on profit despite revenue miss

CEO Shwed: Record results are testimony to the continued demand for internet security.

Revenue at internet security company Check Point Software Technologies Ltd. (Nasdaq: CHKP) rose 2% in the first quarter to $195 million, slightly below the average analyst estimate of $199.98 million for the quarter, though within the range of expectations.

Revenue in the first quarter of 2008 was $191.6 million.

Quarterly net profit on a GAAP basis rose to $80.9 million from $78.3 million in the corresponding quarter of 2008. Non-GAAP net profit reached $95.5 million, compared with $93.4 million in the corresponding quarter.

On a per share basis, non-GAAP earnings per share (EPS) rose 6% to $0.45, slightly higher than the $0.44 average analyst estimate for the quarter. Non-GAAP EPS was $0.43 in the corresponding quarter.

GAAP-based EPS rose to $0.38 from $0.36 in the corresponding quarter.

The company realized record cash flow from operations of $171.8 million and ended the quarter with $1.59 billion in cash and investments.

Calling the quarter a good start to the year, Check Point CEO Gil Shwed said, “Producing record first quarter results despite the current macro economic situation is a testimony to the continued demand for internet security and to Check Point’s leadership position.”

Shares in Check Point closed at $25.18 on Friday, giving it a market cap of $5.29 billion.

Published by Globes [online], Israel business news - www.globes-online.com - on April 27, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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