To All:
Hold the phone!!! Let's keep things in perspective!!!
FIRST:Yes, sequential quarter-to-quarter revenues were flat, but give me a break!! Check Point has grown at skyrocketing pace and it's only normal that they slow down a bit (if you can call THIS slowing down: Year-to-year revenues were up from a tiny $13,684,000 to 30,857,000. This is a whooping 44.36% from last year!
SECOND:Check Point is able to deliver these figures when its clear that the security system business is in a transition from simple security to integrated managing functions. This functions demand greater flexibility and are greater in scope than just installing a simple lock to keep thieves out you know.
FOUR:Net income was an astonishing 41% of revenues. This clearly indicates that CHKPF knows how to keep costs way down in a global business environment where companies are holding back orders and expecting slow business due to the Asian situation. This is managing at its best!
FIFTH: The security business is not going anywhere, but up, up, and up.This is simply because no matter what in upward or downward trends business NEEDS SECURITY. Projections talk about it in the billions on dollars within a few years. But the most clear revelation of today -not gone yesterdays, not fussy tomorrows- is JAPAN, the epicenter of the Asia crisis. It had a seasonal strong quarter! Never mind turmoil, recession, corruption, unfavorable balance of payments,excessive government regulations,competition from Europe and the U.S. in its precious car and semi-conductor business, and so on and so for; it HAD to buy to keep its business going.
SIXTH: Check Point is claiming bigger chunks of the security business landscape with the standard OPSEC (Open Platform for Security Enterprise Connectivity). In an age when communications among networks' most important functional components is forward and backwards compatability-flexibility, an open standard system is the key in increasing and maintaining market share. Take the case of CSCO: Its large installed base historically made it the comprehensive network component supplier of choice. And in the process today' STANDARIZED base of customers was created.
But check: Check Point has an impressive list of OPSEC members: AOL, MCI,GTE, CompuServe...about 130 companies, including nine of the top ISP's. These are the business that matter because they open the roads and set the standards.
I am not going to make this a longer post, but I will say this: The deployment of our global communications network is growing at an unprecedented pace because these networks are ESSENTIAL to stay in business and security is a key component in it. And from what I see Check Point absolutely capitalizing on it. The road on Wall Street might be bumpy, but so far the horizon looks pretty good for Check Point. Perspective, perspective, perspective.
Good day every body.
Nilda Ovalles |
