Check Point Software Q2 Results Top Estimates - Update

(RTTNews) - Check Point Software Technologies Ltd (CHKP) Thursday reported higher profit for the second quarter, supported by a 4 percent growth in revenue. Both earnings and revenue topped Wall Street estimates.

Net income improved to $151.0 million or $0.76 per share from $150.0 million or $0.71 per share in the previous year.

Excluding mainly stock-based compensation, net income amounted to $0.83 per share, while it totaled $0.77 per share last year. On average, 28 analysts polled by Thomson Reuters expected earnings per share of $0.81 for the quarter. Analysts' estimates typically exclude one-time items.

Revenue grew to $340.17 million from $328.65 million a year before. Analysts estimated revenues of $337.22 million for the quarter.

As of June 30, the company had deferred revenues of $580.4 million, up 8 percent from last year.

Operating income rose 2 percent to $183.3 million while operating margin slid to 54 percent from 55 percent in the second quarter of 2012.

During the second quarter of 2013, the company bought back 2.9 million shares for $142.8 million.

Gil Shwed, chief executive officer of Check Point Software Technologies, said, "We are pleased with our second quarter results, which were highlighted by excellent sequential growth in our product sales. Top performers were the North American region and our new data center appliances."

According to Shwed, Check Point's software blades continued to deliver double-digit growth year over year, driven by threat prevention and application control technologies.

CHKP closed at $53.50 on Wednesday.