Security company sees revenue and profit rise despite impact of European financial crisis
Security firm Check Point continued its recent impressive financial performance, recording a 9% rise in revenue and a 17% increase in net income for its second quarter.
The Israel-based company recorded total revenue of $328.6m, up 9% from $300m during the year-ago quarter. The company’s enterprise appliance unit, which offers a combination of hardware and software grew 20% during the quarter and now accounts for around 80% of Check Point’s revenue, CEO Gil Shwed said.
During a conference call with analysts, Shwed added that Check Point continued to grab market share from rivals such as Cisco and Juniper Networks. He also dismissed Palo Alto Networks as a competitor, branding them a niche player, according to Reuters.
However Shwed added that the economic situation in Europe had slowed revenue here. The European region accounts for about 40% of the company’s revenue.
Net income at Check Point rose 17% from $128m this time last year to $150m. Operating income climbed 20% to $180.5m.
"I’m pleased with the continued growth of our revenues and earnings in the second quarter. We’ve seen great acceptance of our new security appliances as a platform of choice for security consolidation. During the quarter, enterprise appliance units grew by over 20% and continued to drive market share gains," said Shwed.
"These results underscore the strength of Check Point’s market position especially in light of the current macro-economic environment.," he added.
During the quarter Check Point launched ThreatCloud, a network of participating Check Point appliances that share information on security issues such as botnets.
The company also announced plans to buy back up to $1bn worth of shares over the next two years.