Cybersecurity company Check Point Software Technologies Ltd. (Nasdaq: CHKP) beat the analysts' consensus estimate with its first quarter 2020 results. The company released its financials today, presenting revenue of $486 million for the quarter, which compares with a consensus estimate of $480 million, and non-GAAP earnings per share of $1.42, $0.04 ahead of the consensus estimate.
"The first quarter success is a testament to our commitment to customers, partners and our employees during these unprecedented times," said Check Point co-founder and CEO Gil Shwed. "Despite the COVID-19 pandemic, we sustained elevated business activity levels and delivered results in the upper half of our guidance with strength coming from the Americas. We saw an increased demand for network security gateways in order to support higher capacities and expand the use of our remote access VPN solutions. We continued to provide the highest level of security to our customers to allow them to run their business.
"During the quarter our work environment changed completely," Shwed continued. "We managed through lack of components in the supply chain and closure of some of our logistics centers. We transitioned almost exclusively to work from home and created new environments that allowed our R&D and technical services to work remotely. Our sales team is also operating from home with no physical meetings with customers, which previously was the primary method of our sales engagements. We also shifted to virtual marketing activities. We managed through these challenges smoothly, yet it’s hard to predict what effect this changing environment will have on the future. I would like to thank our customers, partners and employees for their engagement, dedication and for making this possible," concluded Shwed.
Check Points $486 million first quarter revenue was 3.1% higher than revenue in the corresponding quarter of 2019.
On a US GAAP basis, operating Income was $201 million, down 2.6% compared with $206 million in the first quarter of 2019, and net profit was $179 million, slightly down in comparison with the $180 million profit in the first quarter of 2019. GAAP earnings per diluted share were $1.23, which compares with $1.15 in the first quarter of 2019.
Non-GAAP net profit was $206 million, which compares with $205 million in the first quarter of 2019. Non-GAAP earnings per diluted share were $1.42, which compares with $1.32 in the first quarter of 2019, a 7% percent increase year over year, thanks to Check Point's share buyback program. During the first quarter of 2020, the company repurchased approximately three million shares at a total cost of approximately $325 million, that is, at an average price of $108.30 per share, which is slightly above the current share price. Check Point has a market cap of $14.9 billion.
At the end of March 2020, Check Point had cash balances, marketable securities and short term deposits totaling $3,990 million, up from $3,949 million at the end of December 2019.
Published by Globes, Israel business news - en.globes.co.il - on April 27, 2020
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