Check Point Software Technologies Ltd. (Nasdaq: CHKP) has offered a wide guidance for the second quarter of 2014, at the lower end of analysts' forecasts, after reporting single digit revenue and profit growth for the first quarter. The company expects $340-375 million revenue and earnings per share of $0.82-0.90 (a net profit of $161-176 million).
Check Point's share price fell 5.2% in early trading today on Nasdaq to $62.44, giving a market cap of $12 billion.
"There are contradictory trends. On one hand, there are macroeconomic weaknesses and challenges in some regions, while our sales reps are optimistic, and see a healthy pipeline of deals on the other hand," said Check Point chairman and CEO Gil Shwed. "I want to believe that the positive trend will win out, but we must also deal with the negatives in the forecasts."
He added, "It is difficult to forecast. We need to take into account a weak start to the year in parts of Europe and Asia. On the other hand, our sales people are very optimistic and there's a good pipeline of deals."
Published by Globes [online], Israel business news - www.globes-online.com - on April 29, 2014
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