Network security company Check Point Software Technologies Ltd. (Nasdaq: CHKP) today announced double-digit profit growth for the second quarter of 2012 and extended its share buyback program by $1 billion.
Revenue rose 9% to $328.6 million for the second quarter from $300.6 million for the corresponding quarter of 2011. GAAP-based net profit rose 17% to $150 million ($0.71 per share) for the second quarter from $128 million for the corresponding quarter, and non-GAAP net profit rose 11% to $161.8 million ($0.77 per share) from $145.5 million. The company missed the analysts' consensus of $0.76 earnings per share on $331.4 million revenue.
Check Point's deferred revenue rose 17% to $536.6 million at the end of June from $457 million a year earlier, but its cash flow from operations declined to $157.5 million for the second quarter from $175.5 for the corresponding quarter. The company cash and cash equivalents rose to $3.2 billion at the end of June from $2.69 billion a year earlier.
Check Point chairman and CEO Gil Shwed said, "We've seen great acceptance of our new security appliances as a platform of choice for security consolidation. During the quarter, enterprise appliance units grew by over 20% and continued to drive market share gains. These results underscore the strength of Check Point's market position especially in light of the current macro-economic environment."
Check Point bought back 1.4 million shares during the second quarter for $75 million, and announced that it is extending the buyback program by $1 billion over the next two years. Under the program, begun in 2003, the company has bought back 87.5 million shares for $2.2 billion. The company had 204.8 million shares outstanding at the end of June.
Check Point's share price rose 0.7% yesterday to $45.62, giving a market cap of $9.4 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on July 18, 2012
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