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Technology Stocks : Check Point Software (CHKP) -- Ignore unavailable to you. Want to Upgrade?

To: Ryan Rumanang who wrote (2138)	4/25/1998 2:01:00 AM
From: P.M.Freedman	Respond to of 7150

An article on GLOBES: globes.co.il ---------------- Thursday , Apr 23, 1998 Sun-Thu at 18:00 (GMT+3) Stock Market News Friday: Check Point Up 2%; Plunged Thursday 19% on "Globes" Report Microsoft Plans to Compete By Natasha Dornberg and Doron Avigad Check Point closed up 5/8 at 33-7/8 Firday, in heavy trade. The company's shares dropped 19% in unusually lively trading on Thursday on volume that reached four times the share's usual turnover, despite the publication of Q1 financial results which exceeded analysts' projections. The company reported net profits of $15.5 million for the quarter, a 140% increase. Wall Street analysts attributed the tumble to furor over a report in "Globes" that Microsoft plans to compete directly with the network security company. Globes' article was quoted by major US newspapers and wire services such as the "Wall Street Journal", Reuters, and Bloomberg. "Globes" reported that Microsoft executive vice president Steve Ballmer told a meeting of 1500 Israeli entrepreneurs and high tech managers that Microsoft has begun developing products that will compete in the near future with Check Point. Ballmer then told "Globes", "Microsoft has not yet declared that it is in firewalls. But we have a proxy product that we will expand and expand and expand." Bill Gates' second in command also warned in "Globes" that if Check Point hopes to avoid direct competition with Microsoft, it should coordinate the development of its future generation products. "If they want to cooperate, to create products for our platforms, we will be happy to tell them our plans. If they wish to compete, they are invited to choose to compete with us." Reuters quoted analysts who stated that this confirmed the constant fears concerning Check Point that one of the software industry's major players would launch direct competition. In response, Deborah Triant, president and chief executive of Check Point's U.S. subsidiary, denied that Microsoft would compete in network security software. "We don't view them as direct competitors and ... we also view that the comments were taken out of context,'' she said. Triant also told Reuters, "Check Point has a very cooperative and friendly relationship with the Microsoft proxy group and Microsoft in general.'' Published by Israel's Business Arena on April 24, 1998