Check Point gives upbeat guidance for 2000
Software firm beats consensus estimate for quarter
By Barbara C. Costanza, CBS MarketWatch
Last Update: 3:01 PM ET Apr 12, 2000 Movers & Shakers
Earnings Surprises
NewsWatch
ATLANTA (CBS.MW) -- After reporting better-than-expected first-quarter earnings, Check Point Software said it expects healthy earnings and revenue growth to continue through 2000.
04/22/2000 5:47:38 PM ET
First-quarter earnings totaled 40 cents a share, compared with 24 cents a share earned in the year-ago period. Analysts expected a profit of 35 cents a share.
"We increased our guidance for earnings growth year-over-year to between 45 and 50 percent," said Jerry Ungerman, executive vice president of Check Point (CHKP: news, msgs). As for the second quarter, the company expects to beat the consensus Wall Street estimate of 38 cents a share. See Earnings Surprises.
Check Point's results benefited from the recent highly publicized wave of "cyber attacks," which brought down several well-known and highly trafficked Web sites. The Israel-based company saw its first-quarter revenue jump 79 percent to $78 million.
"We also increased our revenue guidance for the year to 50 percent," said Ungerman. Previously, the company expected revenue growth on a year-over-year basis to be in the range of 35 to 45 percent.
As for acquisitions, the company wouldn't rule out the possibility but said its primary focus is to expand its technology to the small and medium business market and the consumer market. "And that doesn't require acquisitions," said Ungerman.
In regards to the recent volatility in the tech sector, Ungerman said the company has strong fundamentals, as reflected in its revenue and profit growth rates, that would enable it to ride out the turbulence. "We are a very, very positive cash flow company," concluded Ungerman.
Also Wednesday, Check Point announced the appointment of Eyal Desheh as chief financial officer. Eyal was most recently chief financial officer for Scitex Corp. Ltd., a digital-imaging solutions company.
Check Point's shares rose 1 1/2 to 171 in recent trading.
***California and international headquarters in Ramat-Gan, Israel. For more information, please call 800/429-4391 or 650/628-2000 or visit checkpoint.com or opsec.com.
REVENUES NET INCOME (thousands)
Q3 99 Revenues: $57.8 million Q3 99 $24,725
Q2 99 Revenues: $50 million Q2 99 $21,532
Q1 99 Revenues: $43.8 million Q1 99 $19,703
FY 98 Revenues: $141.9 million FY 98 $69,877
FY 97 Revenues: $82.9 million FY 97 $39,518
FY 96 Revenues: $31.9 million FY 96 $15,121
FY 95 Revenues: $9.5 million FY 95 $ 4,931 |
