Israel-based IT security solutions provider Check Point Software Technologies Ltd. (CHKP) Thursday reported a stellar set of fourth-quarter and full-year financial results, beating Wall Street's expectations.
On a GAAP basis, the company's net income for the fourth-quarter of 2009 rose to $109.5 million or $0.51 per share from $86.5 million or $0.41 per share in the comparable year-ago quarter.
GAAP net income in the fourth quarter of 2009 included additional amortization of intangible assets in the amount of $4.9 million related to the acquisition of the Nokia security appliance business.
Excluding items, non-GAAP net income for the quarter was $129.5 million or $0.61 per share, compared to $105.6 million or $0.50 per share in the fourth quarter of 2008. On average, 21 analysts polled by Thomson Reuters were expecting the company to earn $0.57 per share. Analysts' estimates typically exclude one-time items.
Check Point's quarterly revenue increased 25% to $272.1 million from $217.6 million in the year-ago quarter. Wall Street analysts had a consensus revenue estimate of $257.76 million.
For the year ended December 31, 2009, the company's GAAP net income was $357.5 million or $1.68 per share, up from $324.0 million or $1.50 per share in 2008.
On a non-GAAP basis, Check Point's annual net income climbed to $435.3 million or $2.05 per share from $386.0 million or $1.78 per share in 2008. Analysts polled by Thomson Reuters were looking for earnings of $2.02 per share.
The company's total revenue for the year was $924.4 million, an increase of 14% over $808.5 million in 2008 and well ahead of analysts' expectations of $910.03 million.
According to the company, though its business generated revenue growth across all geographies, the Asia Pacific region was particularly strong, delivering more than 40% year over year growth.
Gil Shwed, chairman and CEO of Check Point added that the company's non-GAAP operating margins expanded to 55% in 2009 from 53% in 2008, as a result of increasing revenues and the realization of synergies from the acquisition of the Nokia security appliance business. Check Point completed the acquisition in April of 2009.
The company also announced that its Board of Directors has authorized the repurchase of up to an additional $250 million of outstanding ordinary shares for the year. As of December 31, 2009, Check Point has approximately 209 million ordinary shares of outstanding stock. Since its initial share repurchase program announced in October 2003, Check Point has purchased about 73.6 million shares for a total of approximately $1.57 billion.
Commenting on the financial scorecard, Shwed said, "I'm very proud of the record results we achieved this year -- generated across our key metrics while continuing to invest and advance our security industry leadership."
CHKP, which has been trading in the range of $20-$34.97 over the past 52-weeks, closed Wednesday's trading at $33.17.
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