Check Point Software Technologies Ltd. (Nasdaq: CHKP) today published its financial report for the fourth quarter and full-year of 2010. Fourth quarter revenue rose 17% to $318.5 million from the $272.1 million revenue for the corresponding quarter of 2009, beating the analysts' consensus of $306 million.
GAAP-based net profit rose 25% to $137.4 million ($0.64 per share) for the fourth quarter from $109.5 million for the corresponding quarter. Non-GAAP net profit rose 21% to $156.2 million ($0.73 per share) from $129.5 million. The company beat the analysts' earnings per share consensus of $0.69.
Non-GAAP operating profit rose 20% to $183.6 million, 58% of revenue, for the fourth quarter from $152.7 million for the corresponding quarter. GAAP-based operating profit rose 24% to $162 million for the fourth quarter from $130.6 million for the corresponding quarter.
For the year as a whole, Check Point's revenue rose 19% to $1.1 billion from $924.4 million in 2009. GAAP-based net profit rose 27% to $452.8 million ($2.13 per share) in 2010 from $357.5 million in 2009, and non-GAAP net profit rose 21% to $528 million ($2.48 per share) from $435.3 million.
Cash flow from operations rose 23% to $674.1 million in 2010 from $548.7 million in 2009. Check Point's cash and marketable securities rose to $2.41 billion at the end 2010 from $1.85 billion a year earlier.
Check Point chairman and CEO Gil Schwed said, "We exceeded our targets, and continued to increase our market share in a steadily growing sector. This year, we did much more than expected to increase sales. We expanded our product offering, for example through the development of a product that enables enterprises to block data leaks, which joins a complete list of data protection products. In the coming weeks, we will unveil new products and new strategies that will change the world's attitude toward security. Enterprises have to improve their security, there is no doubt, and we will move up a gear on that."
The positive trend is forecast to continue in 2011 as well. Shwed said, "We are expecting a good year", though he adds, "On the other hand, it is impossible to know how the economy will look and how much the market will grow."
Check Point's guidance is for annual revenue of $1.185-1.225 billion, representing growth of 7.9-11.6% over 2010. In the first quarter, the guidance is for $268-279 million revenue. Full year non-GAAP net profit on a per share basis is expected to be $2.65-2.75 and for the first quarter to be $0.59-.62 per share.
Check Point also pointed out that it succeeded this year in taking market share from competitors and that the company grew faster than the market, which grew 5-10%.
Check Point's share price fell 1.1% yesterday to $46.22, giving a market cap of $9.6 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on January 31, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011