Cybersecurity company Check Point Software Technologies Ltd. (Nasdaq: CHKP) recorded revenue of $491 million in the third quarter of this year, representing growth of 4% in comparison with the third quarter of 2018. Despite this, the company's net profit fell somewhat, because of higher operating expenses, among them the stock-based compensation expense.
Check Point posted an operating profit of $214 million in the third quarter of this year, 5.4% less than in the third quarter of 2018. Excluding one-time items, operating profit fell by just 1.6%.
Third quarter net profit was $188 million ($1.25 per share), down 5% on the corresponding quarter of 2018. Excluding one-time items, non-GAAP net profit for the quarter was $217 million ($1.44 per share), which compares with $219 million ($1.38 per share)in the corresponding quarter.
The main difference between Check Point's GAAP-based and non GAAP-based results arises from a $29 million accounting expense for options and stock given to managers and staff. The consensus analysts' estimate was non-GAAP third quarter earnings per share of $1.4 on revenue of $491 million, so the company met the revenue estimate and beat the earnings estimate.
Cash flow from regular activity also fell in comparison with the corresponding quarter, by 2%, to $244 million. At the end of September, Check Point had cash and liquid securities worth $4.06 billion, after spending $323 million in the third quarter on buying back its own shares.
Deferred revenue grew 8% in the third quarter, to $1.24 billion.
"During the third quarter, our security subscriptions continued to drive results with 13% growth. This was underscored by expanded customer adoption of our cloud solutions," said Check Point co-founder and CEO Gil Shwed, "We continued to increase the breadth of our offerings with the introduction of CloudGuard Connect and CloudGuard Edge, providing enterprises with industry leading threat prevention driven by a cloud service."
Published by Globes, Israel business news - en.globes.co.il - on October 28, 2019
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