Check Point profit falls in Q2 but beats analysts

Gil Shwed
Gil Shwed

Check Point's revenue in the first half of the year totaled $960 million, 4.3% more than in the corresponding period last year.

Israeli cybersecurity company Check Point Software Technologies Ltd. (Nasdaq: CHKP) second quarter net profit per share was slightly above the analysts' forecasts, while falling slightly short of the corresponding quarter last year. Check Point's revenue totaled $488 million in the second quarter, 4.3% more than in the second quarter of 2018. The company's net profit according to GAAP rules amounted to $186 million, 6.1% less than in the second quarter of last year, while its non-GAAP net profit, excluding various accounting expenses, was down 3% to $211 million. Profit per share in the quarter was $1.38, $0.01 higher than the analysts predicted.

Check Point's revenue in the first half of the year totaled $960 million, 4.3% more than in the corresponding period last year. The company's first half GAAP net profit was $365 million, and its non-GAAP net profit was $417 million.

Cash flow from current activity grew 9% to $233 million in the second quarter. Check Point continued its buyback program in the quarter, spending $325 million on buying its shares at an average price of $116 per share, about the same as its current share price on Nasdaq. The company had $4.1 billion in cash at the end of the second quarter.

"The second quarter results were affected by 13% growth in revenue from security subscribers, including the CloudGuard family of threat prevention products. We continued expanding the supply of our products during the quarter by launching new technologies," Check Point cofounder and CEO Gil Shwed said.

Check Point's market cap on Nasdaq is $17.6 billion, following a 12.7% rise in its share price this year.

Published by Globes, Israel business news - en.globes.co.il - on July 24, 2019

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