Network security company Check Point Software Technologies Ltd. (Nasdaq: CHKP) reported its third quarter results today. On its top line, Check Point reported revenue of $344 million for the quarter, 4% more than in the corresponding quarter of 2012.
The consensus analysts' estimate was for revenue of $343 million.
Net profit on a GAAP basis was $159.7 million, up 5% in comparison with the corresponding quarter.
Earnings per share were $0.85, excluding one-time items. This compares with an analysts' consensus estimate of $0.84, and with $0.79 earnings per share in the corresponding quarter.
Cash flow from operations rose 8% to $195.5 million. The company had $3.66 billion cash at the end of the quarter.
"Revenue and earnings per share for the quarter were toward the high-end of our projections, underscoring the strength of our business," said Check Point founder, chairman, and CEO Gil Shwed, "The recently launched data center and small appliance families were received enthusiastically by our customers and posted another quarter of high growth."
For the fourth quarter, Check Point expects revenue of $365-395 million and non-GAAP earnings per share of $0.80-0.90. The guidance is close to analysts' estimates. Assuming it proves correct, it means growth of 5% in revenue for Check Point this year, and of 8% in earnings per share.
Check Point made purchases of its own shares to the tune of $128 million during the third quarter at an average price of $55.8 per share, which compares with a current market price of $58.4.
On the question of acquisitions, which Check Point has refrained from for a long time, Shwed said in the conference call that a vice president for acquisitions and business development had recently been appointed, and that the company continued to look for acquisitions. Asked whether Check Point was considering laying off employees like other technology comanies, Shwed said, "There really is no desire to do that. For the time being, we're growing, and let's hope that that continues."
Check Point has a market cap of $11.5 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on October 21, 2013
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