Check Point Software to step up investment after profit beats estimates

Reuters News
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Posted: Apr 20, 2015 7:01 AM

TEL AVIV (Reuters) - Network security provider Check Point Software Technologies <CHKP.O> plans to sharpen its focus on threat-prevention and mobile security, it said on Monday after posting better than expected quarterly profit on higher sales.

The Israel-based company earned 95 cents a share excluding one-off items in the first quarter, against 84 cents a year earlier. Revenue grew by 9 percent to $373 million.

That compared with a forecast of 91 cents a share on revenue of $370 million, according to Thomson Reuters I/B/E/S.

"It appears the company is hitting its stride as product innovation on the (software subscription) front coupled with a more acquisitive strategy are laying the groundwork for another strong year in 2015," said Daniel Ives, managing director at FBR Capital Markets.

"Cyber security tailwinds are massive and Check Point is at the right place at the right time."

Check Point has acquired two Israeli companies since the start of the year. In February it bought cyber security start-up Hyperwise and this month it acquired Lacoon Mobile Security to help prevent cyber attacks on mobile phones.

"We increased our development, sales and marketing teams to capitalize on the expanding security market opportunity," Chief Executive Gil Shwed said. "We expect these investments to continue through the coming quarters."

Check Point's Nasdaq-listed shares have gained 4 percent so far this year after a 22 percent rise in 2014.

(Reporting by Tova Cohen; Additional reporting by Steven Scheer; Editing by David Goodman)