Israel-based Check Point Software Technologies saw its profits grow 8% in its latest quarter, topping consensus estimates on an adjusted basis. Check Point, which is the world's second-largest network-security company, reported net income of $76.7 million ($0.34/share), versus $0.31 a year earlier. Revenue climbed 29% to $184 million. Two acquisitions took $0.07 a share off of net, meaning the company earned $0.41 on an adjusted basis. Consensus analyst estimates were for adjusted EPS of $0.38 on sales of $179 million. CEO Gil Shwed credited the "overall success of the quarter is a result of our pure focus on security and Unified Security Architecture. This is demonstrated by the growth of our new data security business and core network security business, which delivered the largest quarterly revenue contribution in our history" (full earnings call transcript later today). The company's shares are up 18.5% YTD.
Commentary: Checkpoint Software Technologies is Back on Track • Eight Security Software Stocks to Help Secure Your Portfolio
Stocks to watch: CHKP. Competitors: CHKP, CHKP, MFE, SYMC, CSCO, JNPR. ETFs: SWH
Earnings call transcript: Check Point Software Technologies Q2 2007
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