Check Point Software Q1 Profit Meets View, While Revenue Beats - Update

(RTTNews) - Security software company Check Point Software Technologies Ltd. (CHKP) reported Tuesday higher profit in its first quarter, benefited by increased revenues, despite margin pressure. Adjusted earnings matched analysts' estimates, while top line beat their forecast.

For the first quarter, net earnings advanced to $153.09 million or $0.78 per share from $147.96 million or $0.73 per share a year earlier.

Adjusted earnings, which excluded certain items, were $163.9 million or $0.84 per share, compared to $159 million or $0.79 per share. On average, 28 analysts polled by Thomson-Reuters estimated the company's earnings to be $0.84 for the quarter. Analysts' estimates typically exclude special items.

Operating income improved to $184 million from $177 million last year. Adjusted operating income was $198 million, compared to $189 million a year ago. Adjusted operating margin, meanwhile, dropped to 58 percent from 59 percent a year ago.

Revenue for the 3-month period grew 6 percent to $342.21 million from $322.73 million a year earlier. Analysts expected revenues of $341.88 million.

As of March 31, 2014, deferred revenues were $660 million, compared to $586 million as of March 31, 2013.

Gil Shwed, founder, chairman, and chief executive officer, said, "Combined product and software blade subscription revenue grew by 10 percent, driven by data center appliances and strong software blades sales. Our small appliances delivered another quarter of strong performance as customers continue to embrace these best-of-breed products. In addition, we launched the security architecture for the future -- Software-Defined Protection (SDP) delivering security today to address future threats."

On Nasdaq, Check Point shares gained $0.12 or 0.18 percent on Monday's trading, and settled at $65.91.