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
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
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
Wed, Jan. 28, 5:30 PM
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Oct. 23, 2014, 12:03 PM
- Check Point (CHKP +4.2%) beat Q3 estimates and offered healthy Q4 guidance: Revenue of $395M-$430M and EPS of $0.99-$1.09 vs. a consensus of $410.3M and $1.03.
- Fortinet (FTNT -0.1%) posted a Q3 beat, reported strong billings growth, and issued above-consensus Q4 revenue guidance. EPS guidance was light due to aggressive spending.
- Several security tech peers are outperforming on a day the Nasdaq is up 1.7%. PANW +4.4%. FEYE +4.5%. PFPT +4.9%. QLYS +2.7%. The numbers follow downbeat guidance from IBM, SAP, and VMware, and arguably highlight security's growing share of IT spend.
- Oppenheimer is reiterating an Outperform and $30 target on Fortinet, and notes the company's new billings guidance implies 26% 2014 growth at the midpoint (up from 22%). It thinks the UTM hardware vendor's performance is being driven by strong high-end appliance sales, product refreshes, and the fruits of major sales/marketing investments.
Oct. 23, 2014, 5:32 AM
Oct. 22, 2014, 5:30 PM
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Jul. 24, 2014, 1:57 PM
- Fortinet (FTNT +6.7%) beat Q2 estimates with the help of 33% Y/Y billings growth (exceeded rev. growth of 25%) and a 95% Y/Y increase in $500K+ deals.
- The company guided in its CC slides (.pdf) for Q3 revenue of $182M-$185M and EPS of $0.11 vs. a consensus of $177.3M and $0.13. Full-year guidance is for revenue of $735M-$740M and EPS of $0.47-$0.48 vs. a consensus of $714M and $0.50. Billings are expected to grow ~22% to $835M-$840M.
- On its CC (transcript), the UTM hardware leader suggested its light EPS guidance is due to a heavy investment pace, including aggressive sales hiring. It also mentioned Americas sales were up 40% Y/Y, fueled by a 73% increase for U.S. enterprise.
- Meanwhile, Vasco Data (VDSI +16.9%) trounced Q2 estimates and hiked its guidance for 2014 revenue from traditional businesses to $175M-$180M from $168M-$172M. The company notes adoption of new productions leveraging its Cronto visual authentication tech (acquired last year) has been strong.
- FireEye (FEYE +3%), Palo Alto Networks (PANW +2.8%), Proofpoint (PFPT +3.6%), and Check Point (CHKP +1.7%) are trading higher. Proofpoint reports after the bell; Check Point provided a Q2 beat and healthy top-line guidance yesterday.
- On the other hand, Barracuda (CUDA -5.9%) is selling off. JPMorgan attributes the decline to Fortinet's CC remarks about rapidly growing sales to mid-sized businesses - Barracuda depends heavily on them - with the help of new resellers. The firm argues the concerns are overblown, particularly since Fortinet is more focused on larger mid-sized businesses.
Jul. 23, 2014, 2:24 PM
- Check Point (CHKP +2.1%) guided on its CC for Q3 revenue of $365M-$375M and EPS of $0.88-$0.92 vs. a consensus of $365.9M and $0.90.
- Q2 results beat estimates with the help of a 21% Y/Y increase in software blade subscription revenue to $63.7M. Like several enterprise security peers, Check Point has been trying to grow its reliance on subscription-based software/services revenue streams. Subscription growth also fueled a 14% Y/Y increase in Check Point's deferred revenue balance to $660M.
- Standard product/license revenue grew 4% to $124.3M, and software update/maintenance revenue grew 3% to $174.5M. Opex rose 10% to $172.7M.
- $194M was spent on buybacks. With Check Point's cash balance at $3.6B at quarter's end, the company says it's looking for M&A targets.
- FBR predicts "brighter days are on the horizon for 2H14/2015 as consistent license growth is now here to stay," thanks to a "next-generation firewall refresh" that's still in its early stages. Palo Alto Networks (49% April quarter revenue growth) remains the next-gen firewall market's leader.
Jul. 23, 2014, 5:34 AM
Jul. 22, 2014, 5:30 PM
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