wall street report


After Check Point shares

(119.99 -7.37%)

 Rose 26% this year and reached an all-time high of $ 131 over last week, the company’s first-quarter reports on Thursday led to a 7.4% plunge in the share to $ 120, reflecting a $ 18.7 billion dollar.

Check Point, which provides solutions for cyber security, reported revenues of $ 472 million in the first quarter, a 4.3% increase over the parallel quarter and slightly above analyst forecasts; GAAP net income fell 3.9% to $ 180 million, and non-GAAP net income excluding all accounting items fell 2.1% to $ 205 million, although earnings per share outpaced analysts’ forecasts of 1.32 cents dollar.

Check Point left its 2011 forecast for $ 1.94-2.04 billion and non-GAAP net income of $ 5.85-6.25 per share. The forecast for the second quarter was broadly similar to analysts’ forecasts, although the mid-range forecast for earnings per share was 2 cents below market forecasts.

“Accelerated growth – when there is improvement in the US”

In a conference call held by the company’s management after the reports, the founder and CEO, Gil Shwed, was asked whether Check Point was able to increase market share at the expense of competitors. I think our growth rates should be higher, and that’s what we’re aiming at. “Schweid added that the Infinity security platform is capturing new segments, and the number of new customers is still small but growing.

“While management attributes the results to a certain extent to seasonality in the first quarter, there are a number of indicators that are causing investors’ concerns,” he said in response to Credit Suisse analyst Brad Zelnick. He said revenues from products totaled $ 113 million in the quarter, while the expectation was $ 114 million, down 4.5% from the corresponding quarter, compared to a more moderate decline in the previous quarter. Additional indicators he notes are: a 1.8% drop in revenue from subscriptions despite the purchase contribution of Dome9; A decline in the growth rate of collection, and an increase in the number of days of collection (DSO).