Check Point Software Looks Strong and Secure

An Infonetics research report reveals that the global network security appliance and software market was worth $1.8 billion in the fourth quarter of 2013. For the full year 2013, the total network security market grew 2.6% over the year to $6.4 billion. The market mainly comprises of integrated security products, which includes integrated security appliances, secure routers, SSL VPN gateways, and VPN and firewall software.

Check Point Software Technology’s Offerings
Tel Aviv, Israel-based Check Point Software Technologies is a leading provider of network security offerings. They were founded in 1993 by Gil Shwed and soon pioneered the FireWall-1 and the Stateful inspection technology, which are still being used for most network security solutions today. Since their inception, Check Point has been focused on enhancing the security offerings available in the market and are now a pioneer in making security a business process within an organization.

Their products help secure their customers against Internet-based threats in a simple and inexpensive manner. Their innovative Software Blade architecture is able to provide businesses with products that can be customized to meet business needs.

Check Point has grown inorganically over the past few years. In 2009, they acquired the security appliance business from Nokia and the application database from FaceTime Communications. Their core products include a 3D Security product that integrates policy, people, and enforcement to ensure higher security for information assets while helping organizations to implement a blueprint that is well suited to their needs. Their ZoneAlarm solution helps protect consumers from hackers, spyware, and identity theft. They currently hold 35 patents in the country and have over 19 patents pending. During the recently ended quarter, Check Point also added to the repertoire a ThreatCloud IntelliStore that enables organizations to choose from a suite of threat intelligence feeds that are relevant to them. Organizations can also use this feed to prevent threats to their network.

Their customer list includes organizations of all sizes, including all of the Fortune and Global 100 companies.

Check Point’s Financials
For the recently ended quarter, Check Point recorded revenues of $362.6 million, translating to a 6.6% growth over the year. The market was looking for revenues of $360 million. The revenue growth was driven by 10% growth in revenues from Products and Software Blades and 4% increase in revenues from Software Updates and Maintenance. Overall, they saw a 22% growth in revenues from Software Blades subscription. They ended the quarter with an EPS of $0.89 compared with previous year’s $0.83 and the market’s projected $0.87.

By region, revenues from the Americas brought in nearly 49% of the revenues. EMEA markets reported the highest growth and brought in 35% of the revenues while the Asian markets contributed 16% share.

For the current quarter, Check Point is projecting revenues of $355 million-$375 million, falling in line with the market’s estimate of $365 million. They expect an EPS of $0.88-$0.92 compared with the Street’s forecast of $0.82.

Their stock is trading at $65.80 with a market capitalization of $12.5 billion. It touched a 52-week high of $69.92 in March this year.