October 26, 2015 / 2:31 PM / in 3 years

Check Point ups forecasts after strong cyber security demand

TEL AVIV (Reuters) - Network security provider Check Point Software Technologies Ltd raised its full-year profit forecast on Monday, reflecting strong demand for its advanced threat prevention and mobile security technologies.

Israel-based Check Point, one of the world’s leading providers of corporate security software, reported third-quarter earnings that beat expectations and said it saw strong growth opportunities in mobile phones.

The company has expanded this year through the acquisition of cyber security start-up Hyperwise and Lacoon Mobile Security, while bolstering its presence in critical infrastructure protection with a combined hardware and software product built for deployment in remote, harsh environments.

It also launched a product with VMWare for cloud security.

“Mobile devices are becoming the weakest link in cyber security and we are committed to staying one step ahead and prevent these threats,” Chief Executive Gil Shwed said.

Mobile is a small part of Check Point’s business but the potential is huge, given the billions of devices needing protection. “We are pioneers in mobile, we are getting in at the very early stages,” Shwed told reporters.

Check Point earned $1.04 cents per diluted share excluding one-time items in the third quarter, up from 93 cents a year earlier. Revenue grew 9 percent to $404 million.

It was forecast to earn 98 cents a share on revenue of $403 million, according to Thomson Reuters I/B/E/S.

“This is another good quarter with cyber security tailwinds and healthy execution helping the company navigate a choppy IT spending environment,” said FBR Capital Markets managing director Daniel Ives, noting the company was well positioned to gain market share.

Check Point, which has added over 600 workers in 2015, forecast fourth-quarter EPS excluding one-time items of between $1.10 and $1.18 on revenue of $440 to $470 million. Analysts were forecasting it will earn $1.11 on revenue of $456.5 million.

Shwed raised his full-year adjusted profit forecast to between $4.08 and $4.16 a share from a previous $3.90 to $4.02 and narrowed the range for his revenue outlook to between $1.612 and $1.642 billion.

Ives, who rates Check Point “outperform”, said the outlook was “better than feared” after companies such as Fortinet and Barracuda Networks disappointed investors in recent weeks.

Additional reporting by Steven Scheer; Editing by David Holmes

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