Check Point Software Technologies has posted second-quarter
financial results that were down compared to the second quarter of
2001 because of the weak global economy, according to company
officials.
However, Check Point met Wall Street expectations for both revenue
and earnings per share.
For the quarter, which ended 30 June, Check Point tallied $108.6m
(£69.4m) in revenue, down from $142.1m in the same quarter 2001.
That figure was in line with the $108m forecast by the 17 analysts
polled by Thomson Financial/First Call.
The company earned $64.7m (£41.4m) for the quarter, down $86.8m in
the second quarter last year. Second quarter earnings translate to
26 cents per share, a penny higher than the 25 cents per share
estimate given by 33 analysts to Thomson Financial/First Call. Both
numbers were down from the second quarter of 2001, however, when
Check Point earned 33 cents per share.
Check Point ended the quarter with $1.18bn (£755m) in cash and
investments, up from the $1.03bn in hand at the beginning of the
year. The company spent $7.4m (£4.7m) in research and development
for the quarter, down from $9m spent in the same area in the second
quarter of 2001.
The decline in year-on-year figures was a result of "macroeconomic
conditions and IT spending... not [improving]" at the rate the
company expected them to, said Jerry Ungerman, president of Check
Point.
Though the economy is still weak, the company expects that it will
meet its projected figures for the rest of the year, with earnings
per share dipping slightly to 25 cents in the third quarter and
rising to 27 cents per share in the fourth quarter, according to
Gil Shwed, the company's chairman and chief executive
officer.
Ungerman and Shwed also touted Check Point's forthcoming
SmartDefense product, which is set to ship in a few weeks.
SmartDefense is a subscription-based service that will include a
security intelligence service, as well as real-time threat
information designed to more quickly give administrators tools to
fight worms, viruses and other attacks.