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.
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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