Check Point Software Q4 Results Top View; Expands Share Buyback For Up To $1 Bln

(RTTNews) - Check Point Software Technologies Ltd (CHKP) reported Tuesday a higher profit in its fourth quarter, benefited by good growth in revenues. Adjusted earnings per share as well as top line beat analysts' estimates. Separately, the company announced a share repurchase program to buy additional shares up to an aggregate of $1 billion.

For the fourth quarter, net income climbed 12 percent to $194.13 million from last year's $173.99 million. Earnings per share grew 16 percent to $0.99 from $0.85 a year ago. The latest quarter results included stock-based compensation expenses and amortization of intangible assets.

Adjusted net income, which excluded items, was $191.98 million or $0.98 per share, compared to $185.10 million or $0.91 per share in the prior year. On average, 29 analysts polled by Thomson Reuters expected earnings of $0.95 per share for the quarter. Analysts' estimates typically exclude special items.

Quarterly revenues increased 5 percent to $387.08 million from last year's $368.57 million. Analysts expected revenues of $383.58 million.

Products and licenses revenues grew to $156.20 million from last year's $150.91 million. Revenues from software updates, maintenance and subscription increased to $230.87 million from $217.67 million last year.

As of December 31, Check Point had deferred revenues of $671.6 million, an increase of 14 percent from last year's $589.7 million.

In the quarter, operating income grew 2 percent year-over-year to $214.1 million, and adjusted operating income rose 2 percent to $227.3 million. Adjusted operating margin was 59 percent, compared to 60 percent last year.

Founder, Chairman and Chief Executive Officer Gil Shwed said, "The fourth quarter represented one of the best quarters that I can remember, which is reflected in our customer wins and deferred revenues. The Americas and Europe delivered great results that were driven by the strength of our new data center appliances and next generation threat prevention software blades."

For fiscal 2013, net income increased 5 percent to $652.8 million, and earnings per share rose 10 percent to $3.27. Adjusted net income was $685.2 million or $3.43 per share. Annual revenues grew 4 percent to $1.39 billion.

In a separate statement, Check Point announced an extension and expansion to its on-going share repurchase program, in which it is authorized to repurchase up to $200 million of its outstanding shares each quarter up to an aggregate of $1 billion.

In 2013, the company repurchased approximately 10.1 million shares in an aggregate amount of about $538 million. The company said the new plan replaces the previous repurchase plan adopted in July 2012, which provided for the repurchase of shares for $1 billion over a period of two years.

As of December 31, Check Point has approximately 192.3 million ordinary shares outstanding.

Check Point Software shares closed Monday's regular trading session at $63.54, down $1.15 or 1.78 percent. In extended trading, shares gained $1.29 or 2.03 percent and traded at $64.83.