Check Point reports growth in 2019 revenue and profit

Gil Shwed Photo: Reuters

The Israeli cybersecurity company beat the analysts' forecasts and is expanding its share repurchase program by $2 billion.

Israeli cybersecurity company Check Point Software Technologies Ltd. (Nasdaq: CHKP) has reported 4.1% revenue growth in 2019, a slight rise in GAAP net profit and a 7.3% rise in non-GAAP net profit per share. The company beat the analysts' forecasts with revenue of $1.995 billion, of which $544 million was in the fourth quarter of the year, up 3.5% compared with the corresponding quarter of 2018.

Revenue from products and licenses fell 1.7% in the fourth quarter to $158 million while revenue from security subscriptions, software and maintenance grew both in the fourth quarter and over the entire year.

GAAP net profit in the fourth quarter was $272 million, up from $238 million in the corresponding quarter of 2018. Non-GAAP net profit in the fourth quarter was $299 million, up 13.5% from the corresponding quarter of 2018. Non-GAAP earnings per share in the fourth quarter of 2019 was $2.02, up 20.2% from the corresponding quarter of 2018. This was $0.03 higher than the analysts' forecasts.

2019 GAAP net profit was $826 million up from $821 million in 2018. Non-GAAP net profit in 2019 was $933 million compared with $911 million in 2018 and earnings per share was $6.13.

During the fourth quarter of 2019, the company repurchased approximately 2.9 million shares at a total cost of approximately $325 million. The company also announced a $2 billion extension to the share repurchase program with authorization to repurchase up to $325 million each quarter.

Check Point founder and CEO Gil Shwed said, "We closed out the last decade with nearly $2 billion in annual revenues and over $1 billion dollars in non-GAAP operating income. Over the last decade we introduced our security-as-a-service subscription model, which delivers the most advanced technologies in cyber. In 2019, subscription reached over six hundred million dollars in revenues and was driven by cloud, mobile and zero-day advanced threat prevention technologies. We began the new decade with the introduction of Infinity NEXT, the industry’s most comprehensive cyber security platform with over 60 security technologies that support over 50 types of assets including operating systems, cloud workloads, IoT devices, mobile devices and network of any type."

Published by Globes [online], Israel business news - en.globes.co.il - on February 3, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Gil Shwed Photo: Reuters
Gil Shwed Photo: Reuters
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