Check Point Software 2nd-quarter profit down slightly, but adjusted result beats forecast

Check Point 2Q profit down slightly; tops forecast

REDWOOD CITY, Calif. — Check Point Software Technologies Ltd., which makes Internet security products, said Tuesday its second-quarter profit slipped nearly 5 percent on one-time charges.

But Check Point’s adjusted profit came in at the high end of company expectations, and beat analysts’ average forecast.

Check Point’s net income for the three months ended June 30 was $75.6 million, down from nearly $79.2 million, in the same quarter a year ago. The per-share profit for both periods — in which there were different numbers of shares outstanding — was 36 cents.

The latest quarter’s profit was hurt by restructuring charges from Check Point’s acquisition of Nokia Corp.’s online security business, amortization of intangible assets and stock-based compensation.

Excluding those charges, Check Point’s profit was nearly $100.9 million, or 48 cents per share. On that basis, analysts surveyed by Thomson Reuters had forecast a profit of 46 cents per share, on average.

Revenue rose 12 percent to $223.6 million from $199.6 million in the year-ago quarter. Analysts had forecast revenue of nearly $219.6 million for the latest quarter.

Gil Shwed, chairman and CEO of Check Point, said the revenue and adjusted profit “came in at the high end of our projections,” aided by the Nokia deal that Check Point agreed to in December.

Shares of Check Point, an Israeli company with U.S. headquarters in Redwood City, Calif., rose $1.38, or nearly 5.6 percent, to $26.22 in morning trading.