Check Point Software Technologies Ltd. (CHKP: Quote) Wednesday reported higher profit for the second quarter, aided by an increase in revenues as well as lower costs. Adjusted earnings topped Wall Street estimates while revenues missed analysts' view. The company also announced an expansion to its on-going stock repurchase program.
Gil Shwed, CEO, said, "I'm pleased with the continued growth of our revenues and earnings in the second quarter. We've seen great acceptance of our new security appliances as a platform of choice for security consolidation. During the quarter, enterprise appliance units grew by over 20% and continued to drive market share gains.''
Net income for the quarter increased to $149.98 million from $127.99 million. Earnings per share rose to $0.71 from $0.60.
Excluding certain items, earnings grew to $0.77 from $0.68. On average, 27 analysts polled by Thomson Reuters expected earnings of $0.76 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues grew to $328.65 million from $300.64 million. Analysts expected revenues of $331.42 million for the quarter.
As of June 30, the company had deferred revenues of $536.6 million, up 17 percent from June 30, 2011.
Revenues from Products and Licenses were slightly higher at $123.16 million. Software updates, maintenance and subscription generated $205.49 million, an increase of 13 percent from last year.
Cost of revenues as well as operating expenses declined from last year.
Additionally, the company said its board of directors has authorized an expansion to the on-going stock repurchase program. Under the expanded plan, Check Point can buy back up to one billion dollars of its outstanding shares during the next two years.
As of June 30, Check Point had 204.8 million shares of common stock outstanding. During the second quarter, the firm repurchased 1.4 million shares at a total cost of $75 million.
Check Point started its share buyback program in 2003. Since then, the firm has purchased 87.5 million shares for a total of $2.2 billion.
CHKP closed on Tuesday at $45.62, up from the prior close of $45.30, on 3.26 million shares.
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by RTT Staff Writer
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