Network security technology company Check Point Software
Technologies saw revenue grow in the first quarter of 2004, even as
its net income dropped because of charges from the recent
acquisition of Zone Labs.
Check Point reported revenue of $116m (£66m) in the quarter
ending 31 March, compared with revenue of $104m in the same quarter
last year, an increase of 11%.
However, charges related to the purchase of Zone Labs drove net
income down more than 30%, to almost $41m compared with $60m.
Check Point completed its acquisition of Zone Labs for $205m in
cash and stock on 26 March. Consequently, Zone Labs' operating
results were not included in Check Point's first quarter.
However, Check Point did record a one-time charge of $23.1m to
acquire the company, which makes internet firewall products popular
among consumers and VPN (virtual private network) software
users.
Check Point said its net income rose 8% for the quarter to $65m
compared with $60m in the first quarter of last year.
Check Point credited the success of new products, including
VPN-1 Edge and Check Point Express, for the growth. The company
will use the technology acquired with Zone Labs to develop a
comprehensive security portfolio that stretches from large
enterprises to consumers.
The company added that it will introduce a new line of products
that will address web access and web security issues.
Paul Roberts writes for IDG News Service