"We had very good results. Revenue and net profit were near the top end of our forecast range, and we launched the Check Point Infinity solution - the future of cyber security," Check Point Software Technologies Ltd. (Nasdaq: CHKP) cofounder and CEO Gil Shwed said today at a press conference conducted by the company at its Tel Aviv offices.
Check Point provides cyber security solutions. The company outperformed the forecasts in both its top and bottom lines, with $435 million in revenue, 8% more than in the first quarter of 2016, and a non-GAAP net profit of $202 million, $1.20 per share, also 8% more than in the corresponding quarter last year. Cash flow was up 10% to $355 million.
Shwed added that the company had strong growth in key items, such as cash flows and deferred revenue. He commented that the growth rate in next-generation products was the highest in the industry. The company is projecting $440-465 million in revenue in the second quarter and a non-GAAP profit per share of $1.17-1.25.
The second quarter forecasts are within the range of the analysts' forecasts. Shwed said, "Let's assume that we live at home, and cyber attacks are a leaky roof from the rain. One way is to add more and more systems, even though they are not very effective. It's like a bucket that collects the water from the leaking roof. The other alternative is to use Check Point.
"Many companies say, 'There's no way of stopping attacks - let's deal with the damage. That's like saying you don't need a roof, or that the roof has to have a leak."
In response to a question about the company's growth engines, Shwed mentioned the mobile sector. "This device makes it possible to break into our lives and our organizations. About 1% of organizations are properly secured. It's a joke. We're one of the only players in the field, and the good news is that we're seeing a very high growth rate. Awareness of the sector is growing. The situation with the cloud is the same."
Another question asked at the press conference was whether Check Point would be listed on the Tel Aviv Stock Exchange (TASE) following the changes made there. Shwed answered, "The TASE has taken many good steps. For us, it's not relevant right now." At the end of the first quarter, Check Point had $3.8 billion in cash, after spending $248 million on buying back the company's shares in the first quarter. Check Point's market cap is $18.2 billion.
Published by Globes [online], Israel Business News - www.globes-online.com - on April 27, 2017
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