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Check Point surges despite Euro worries

Security company sees revenue and profit rise despite impact of European financial crisis

By Steve Evans

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.

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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.

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