Israeli network security company Check Point Software Technologies Ltd. (Nasdaq: CHKP) announced good third quarter results today. Revenue was $404 million, representing a 9% increase over the corresponding quarter of 2014, and beating the consensus analysts' estimate of $402.5 million.
Non-GAAP operating profit was $228 million, 56% of revenue, compared with $215 million in the third quarter of 2014. Non-GAAP earnings per share were $1.04, 12% more than the $0.93 posted in the corresponding quarter. The consensus analysts' estimate was for EPS of $0.98 in the current quarter.
On a GAAP basis, net profit was $168 million, compared with $161 million in the corresponding quarter.
Cash flow from operations increased by 13% to $228 million from $202 million in the third quarter of 2014.
During the third quarter of 2015, the company repurchased 3.1 million shares at a total cost of $250 million.
Cash balances, marketable securities and short-term deposits totaled $3,612 million at the end of September 2015, compared with $3,656 million at the end of September 2014.
"We had very good financial results in the third quarter. Revenues were toward the high-end of our projections, while earnings exceeded projections. Our combined products and software blades revenue continued to post double-digit growth, driven primarily by data center appliances, mid-size appliances, and software blades," said Check Point founder and CEO Gil Shwed, "Mobile devices are becoming the weakest link in cyber security, and we are committed to staying one step ahead and prevent these threats. This quarter we extended our technology to smartphones and tablets, while introducing new and innovative threat prevention solutions for cloud and network infrastructure."
Check Point's share price closed at $80.43 on Friday, giving the company a market cap of $14.55 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on October 26, 2015
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