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Wed, Jul. 22, 9:31 AM
- Check Point (NASDAQ:CHKP) is rallying after beating Q2 estimates and (thanks to software subscription growth) reporting an 18% Y/Y increase in its deferred revenue balance to $780M (above revenue growth of 9%).
- The firewall/security software vendor once more guided in-line on its CC (webcast): Q3 revenue of $392M-$410M and EPS of $0.92-$1.02 vs. a consensus of $403.1M and $0.97. A weak euro remains a headwind.
- Key numbers: Product/license revenue +6% Y/Y to $132.3M. Software blade subscription revenue +20% to $76.6M. Software update/maintenance revenue +7% to $186.4M. GAAP operating expenses +14% to $196.3M - sales/marketing spend totaled $92.2M, G&A $22.3M, and R&D $36.2M.
- $245M was spent on buybacks. Check Point ended Q2 with $3.61B in cash/investments, and no debt.
Wed, Jul. 22, 5:47 AM
Tue, Jul. 21, 5:30 PM
Thu, Jul. 9, 2:26 PM
- Security tech plays are outperforming amid a 0.4% gain for the Nasdaq. The rally comes a day after the NYSE suffered a lengthy outage, United Airlines grounded flights, and the WSJ's site briefly went down.
- All three incidents have been blamed on tech issues rather than attacks/breaches, but questions linger. FBI director James Comey: "We do not see any indication of a cyber breach or cyber attack ... But again, in my business, you don't love coincidences." Ex-White House cybersecurity advisor Richard Clarke: "Right now, anybody who says they know for sure what happened before the forensic work has been done is kidding themselves."
- Also: In a bit of good PR/convenient timing for the group, representatives from the PureFunds Cyber Security ETF (HACK +1.6%) rang the NYSE's opening bell today. The NYSE says the event was booked months in advance.
- Standouts include CyberArk (CYBR +4%), FireEye (FEYE +2.7%), KEYW Holding (KEYW +5%), Fortinet (FTNT +2.4%), Check Point (CHKP +2.6%), Imperva (IMPV +2.9%), Zix (ZIXI +2.8%), Proofpoint (PFPT +2.7%), and Vasco (VDSI +2.5%). Barracuda (CUDA +2%) reports after the bell.
Wed, Jun. 24, 11:54 AM
- Baird has downgraded Fortinet in response to a healthy 2015 run-up, and many security tech peers have joined the company in seeing profit-taking (HACK -1.3%). The Nasdaq is down just 0.1%.
- Decliners include FireEye (FEYE -2.3%), Qualys (QLYS -6.7%), KEYW (KEYW -5.1%), Check Point (CHKP -1.9%), Barracuda (CUDA -2.5%), Vasco (VDSI -2.5%), and Proofpoint (PFPT -1.8%). UBS downgraded FireEye to Neutral two days ago while citing valuation, and also cut Symantec to Sell. RBC has hiked its Qualys target by $6 to $44 today, while reiterating a Sector Perform.
- The selloff comes as an Office of Personnel Management (OPM) official states up to 18M Social Security numbers may have been stolen in a recent breach. FireEye recently ID'd a Chinese group it believes was responsible for the hack.
- Meanwhile, the WSJ has published a column about Check Point's efforts to expand beyond its core firewall market, and thereby keep the likes of Fortinet and Palo Alto Networks at bay. Gartner estimates Check Point had a 22.7% 2014 firewall share, well above #2 Cisco's (NASDAQ:CSCO) 15.9% but down from a 2013 share of 24%.
Wed, May 27, 9:55 AM
- "Current investments likely won't be productive for sometime, which means EPS growth will likely slow in FY15," writes Morgan Stanley, downgrading Check Point (NASDAQ:CHKP) to Underweight. "We continue to look for a high-single digit EPS CAGR through FY17."
- MS thinks a firewall refresh cycle is peaking and believes Check Point has lost some share in the segment - next-gen firewall leader Palo Alto Networks has been seeing huge growth. It also thinks subscription billings growth softened in 2014, and that margins are declining.
- Check Point had risen over 35% from last summer's lows going into today. Shares currently go for 21x 2015E EPS and 19x 2016E EPS.
- Regarding Check Point's "current investments": Earlier this year, the company bought startups Lacoon and Hyperwise to strengthen its threat-prevention software/services offerings. It also launched a malware-protection software tool called Threat Extraction.
Mon, Apr. 20, 9:22 AM
- Along with its Q1 results, Check Point (NASDAQ:CHKP) has announced a partnership with threat-prevention hardware/software/services leader FireEye (NASDAQ:FEYE) to "share threat intelligence to protect customers from modern advanced attacks." The deal covers intelligence-sharing for Check Point's ThreatCloud managed security service and Next Generation Threat Prevention appliances, and FireEye's NX Series threat-prevention hardware.
- The companies assert they'll offer "the industry's largest library of threat intelligence currently available," and update information in near-real time. FireEye gains access to Check Point's huge installed base; Check Point gets to partner with a firm seen by many as an attack-prevention tech leader, and which has often been hired to probe major cyberattacks.
- The deal comes two weeks after Cisco unveiled a malware-protection solution (offered either as an on-premise appliance or a cloud service) that pairs malware analysis with threat intelligence. In late March, next-gen firewall leader Palo Alto Networks (NYSE:PANW) launched a cyber threat intelligence service called AutoFocus.
- Separately, Check Point has guided on its Q1 CC for Q2 revenue of $380M-$400M and EPS of $0.90-$0.99, in-line with a consensus of $392.4M and $0.94. With the company depending heavily on European sales, forex has been a major headwind.
- CHKP +1.1% premarket to $82.58. FEYE +1.4% to $41.40.
- Check Point's Q1 results, PR
- Two months ago: Check Point buys threat-prevention startup Hyperwise
- Update (3:10PM ET): Check Point is now up 5.2% amid a tech rally. FireEye is up 3.9%.
Mon, Apr. 20, 5:34 AM
Sun, Apr. 19, 5:30 PM
Tue, Apr. 14, 6:22 AM
- Cyberattacks and cybercrime against large companies – those with over 2,500 employees - rose 40% globally in 2014, according to Symantec's annual Internet Security Threat study published Tuesday.
- Attacks on small- and medium-sized companies, which accounted for 60% of targeted attacks, increased 26% and 30%, respectively.
- Despite the large hacks at Home Depot, JPMorgan, Staples and Sony, Symantec says the mining industry, which includes oil & gas, was the most-targeted sector last year.
- Related tickers: FEYE, IMPV, FTNT, PFPT, HACK, CYBR, VDSI, CHKP, PANW, CUDA
Sat, Apr. 4, 3:12 PM
- Lacoon Mobile Security provides threat detection, risk mitigation, and vulnenrability assessment software and services for an enterprise's iOS/Android devices. The startup has an R&D team in Tel Aviv, and a sales team in San Francisco.
- Check Point (NASDAQ:CHKP) has bought Lacoon for an undisclosed sum, while asserting the company provides "the most comprehensive [mobile security] solution for iOS and Android," and "the best advanced threat catch-rate for enterprise-grade mobile security platforms." Among other things, Laccon's technology is declared to "[detect] device, application and in-network threats that others may have missed and [quantify] the risks and vulnerabilities that BYOD exposes to the enterprise."
- Check Point plans to integrate Lacoon's offerings with its Capsule mobile security platform. President Amnon Bar-Lev: "I think the combination of Lacoon together with us scanning all of your networks, it's a very robust and complete security solution."
- The purchase follows Check Point's February acquisition of threat prevention tech developer Hyperwise for a reported $80M. Earlier this week, Check Point rival/next-gen firewall leader Palo Alto Networks announced plans to offer a mobile security solution that combines Palo Alto's firewalls and security services with VMware's AirWatch enterprise mobility management (EMM) platform.
Tue, Mar. 10, 2:55 PM
- Security tech plays, several of which were huge gainers in February, have been hard hit (HACK -2.6%) amid a market selloff. Major decliners include FireEye (FEYE -4%), CyberArk (CYBR -6.6%), Proofpoint (PFPT -4.7%), and Vasco (VDSI -5.5%). Imperva is off sharply after announcing a 3M-share offering.
- FBN Shebly Seyrafi reiterated his bullish stance on the group today, forecasting security IT spend will grow 14% this year (up from 2014's 11%). Palo Alto Networks (PANW -0.5%) and Fortinet (FTNT -2.4%) are his favorites due to positive checks, but he also likes other names, mentioning FireEye and Check Point (CHKP -0.2%) in particular. Palo Alto and Check Point are seeing only modest losses.
- Earlier today, Check Point launched Threat Extraction, a malware-protection tool that proactively extracts and reconstructs documents traveling over a network with known safe elements (so as to remove the threat of malware). The product launch, which furthers Check Point's efforts to grow its software exposure, follows the company's purchase of threat-prevention software startup Hyperwise.
Wed, Feb. 18, 1:13 PM
- Check Point (CHKP +0.5%) has acquired Hyperwise, a stealth-mode Israeli startup declared to have "developed a unique and cutting-edge CPU-level threat prevention engine that eliminates threats at the point of pre-infection." Calcalist reports the purchase price is $80M.
- Check Point asserts Hyperwise's software "provides a higher catch rate of threats and provides organizations an unmatched level of protection against attackers," in part by blocking malware before it become active on a network, and that its CPU-level blocking can stop previously undetected attacks. It will be added to Check Point's Threat Emulation solution, which runs suspect code in a virtual sandbox to determine if it's a malicious.
- FireEye (NASDAQ:FEYE), whose virtual sandbox solution has often been praised, is arguably the leader in the threat-prevention space. Next-gen firewall vendor Check Point rival Palo Alto Networks (NYSE:PANW) is also going after the market, aided by technology obtained from startup Cyvera. Corporate interest has been growing rapidly following a string of well-publicized hacks.
Thu, Jan. 29, 11:16 AM
- Check Point (NASDAQ:CHKP) has guided on its Q4 CC (webcast) for 2015 revenue of $1.6B-$1.65B and EPS of $3.90-$4.02. The former is above a $1.59B consensus in spite of major forex pressures - Check Points depends heavily on European sales. The latter is below a $4.07 consensus due to Check Point's plans to spend aggressively to improve its positioning in a very competitive security appliance/software market.
- The company has also announced it's upping its total buyback authorization by $500M to $1.5B, and its quarterly authorization by $50M to $250M. Check Point spent $195M on buybacks in Q4, and $765M over the whole of 2014.
- With a strong IT security spending environment providing a boost, product/license revenue (drives future maintenance/update revenue) rose 6% Y/Y in Q4 to$162M, and software blade subscription revenue 20% to $72.3M. Update/maintenance revenue grew 7% to $186.2M.
- Operating expenses rose 11% to $191.4M (compares with 9% revenue growth), and the deferred revenue balance grew a healthy 17% to $784M.
- Q4 results, PR
Thu, Jan. 29, 5:17 AM
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