Check Point Software Earnings Exceed Expectations
Check Point Software, which specializes in security appliances and software, announced positive earnings for Q1 2011 with a record year-over-year growth. Read on for the financial breakdown …
Check Point’s Q1 revenues increased by 15 percent to $281.3 million, compared to corresponding 2010 results of $245.1 million. The company’s first-quarter net income increased by 25 percent, to $122.1 million, compared with $98 million from Q1 last year. Those results exceeded of Wall Street expectations.
Check Point Software’s CEO Gil Shwed called the results record-breaking in part because the company exceeded its own growth projections. The company attributed its growth in part to increased sales of its network security appliances and its new Application Control Software Blade.
Check Point was expected to earn 62 cents on revenue of $276.7 million, according to Thomson Reuters. At market close, Check Point’s stock increased 3 percent, hitting $53.56. Zacks Equity Research (through Yahoo! Finance) predicts a continued strong demand for midrange networking appliances and sees Check Point stock as a short-term “Hold” investment, amid concerns about competition from companies including Juniper Networks and Microsoft.
Zacks noted Check Point Software is taking some of Cisco’s market share (likely midmarket), which also would contribute to Check Point’s Q1 2011 success.
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