midastouch017
18 years ago
Check Point Software Reports Financial Results for the First Quarter of 2006
Monday April 24, 4:00 am ET
Strong Cash Flow and Growth in Deferred Revenues
REDWOOD CITY, Calif.--(BUSINESS WIRE)--April 24, 2006--Check Point® Software Technologies Ltd. (Nasdaq:CHKP - News), the worldwide leader in securing the Internet, today announced its financial results for the first quarter ended March 31, 2006.
Financial Highlights for the First Quarter of 2006:
Revenues: $133.6 million, a decrease of 3 percent compared to $137.7 million in the first quarter of 2005.
Deferred Revenues: $178.9 million, an increase of $9.9 million or 6 percent over deferred revenues as of December 31, 2005.
Net Income - GAAP: $61.6 million, a decrease of 16 percent compared to $73.7 million in the first quarter of 2005. Equity based compensation expenses in the amount of $11.1 million are being reported for the first time in the first quarter of 2006 GAAP results pursuant to SFAS 123®. This expense was not included in the 2005 results.
Net Income - Non GAAP: $75.1 million, a decrease of 1 percent compared to $75.8 million in the first quarter of 2005. Non-GAAP net income excludes equity based compensation expenses and acquisition related charges(1).
Earnings per Diluted Share - GAAP: $0.25, a decrease of 13 percent compared to $0.29 in the first quarter of 2005. Equity based compensation expenses are included in the first quarter of 2006 GAAP results pursuant to SFAS 123®.
Earnings per Diluted Share - Non GAAP: $0.31, an increase of 3 percent compared to $0.30 in the first quarter of 2005. Non-GAAP EPS excludes equity based compensation expenses and acquisition related charges.
Share Repurchase Program: During the first quarter of 2006, Check Point purchased 3.0 million shares at a total cost of approximately $63.9 million.
Cash Flow: total cash flow, excluding share buy back, was $129.5 million, an increase of 26% compared to the first quarter of 2005 and the largest in Check Point's history. Cash flow from operations was $112.0 million, an increase of 15 percent compared to the first quarter of 2005.
See "Use of Non-GAAP Financial Information" and "Reconciliation between GAAP and Non-GAAP Statement of Income" below for more information regarding Check Point's use of Non-GAAP measures.
"Our first quarter financial results demonstrated the strength in our subscription business driven by customer loyalty, the success of our SmartDefense program and the resulting strong operating cash flow and increase in deferred revenues," said Gil Shwed, chairman and chief executive officer of Check Point Software. "In general, our financial results were impacted by a change in our decision to acquire Sourcefire, lower product revenues and a slower pace of growth in our industry."
During the first quarter of 2006, we introduced product enhancements strengthening our unified security architecture. Introductions during the quarter included:
Connectra -- delivered enhanced and most comprehensive SSL VPN with new security, application and performance features.
Eventia Analyzer 2.0 -- launched simplified security event management (SEM) that automatically prioritizes security events for decisive, intelligent action, and has extended support to the endpoint and correlates data for anti-virus applications, personal firewalls and operating systems.
VPN-1 Edge NGX -- unveiled extended security protection for remote offices with advanced intrusion prevention and anti-virus to complement its firewall and VPN technologies and ensure that branch offices have protection from worms and viruses.
Partial List of Awards in the First Quarter 2006:
Named VARBusiness Magazine Five-Star Vendor for Channel Partner Program -- certified as a Five-Star Partner for commitment and strength of programs for IT integrators, resellers and consultants.
Recognized by CRN as 2006 Channel Champion and for Channel Chief, Kevin Maloney -- named 2006 Channel Champion in network security software category based on results from study indicating channel leadership. Channel Chief recognition is granted to influential executives who consistently defend, promote and execute effective channel partner programs and strategies.
Received Two Coveted Security Awards from SC Magazine -- granted Best Enterprise Firewall and Best Remote Access VPN Solution for IPSec awards.
Mr. Shwed continued, "We are entering the second quarter with a high level of activity and many initiatives in our pipeline. The upcoming version of VPN-1 NGX will significantly change our core product lines, elevating the level of functionality, security, manageability and performance and continue to raise the bar for the best internet security."
Conference Call and Webcast Information
Check Point will host a conference call with the investment community on April 24, 2006 at 8:30 AM ET/5:30 AM PT. To listen to the live webcast, please visit Check Point's website at http://www.checkpoint.com/ir. A replay of the conference call will be available through May 8, 2006 at the Company's website http://www.checkpoint.com/ir or by telephone at (973) 341-3080, pass code 7246520.
http://biz.yahoo.com/bw/060424/20060424005486.html?.v=1
Dubi
midastouch017
18 years ago
Check Point needed Sourcefire
Cancelling the merger cost it $40 million. CFO Eyal Desheh: We'll take measures to restore growth.
Gitit Pincas 4 Apr 06 19:33
One of the dark clouds hanging over Check Point Software Technologies Ltd.’s (Nasdaq: CHKP) in recent years concerned its short and long-term growth. This cloud caused a downpour when at 8 pm New York time yesterday, Check Point published a profit and revenue warning for the first quarter of 2006 and for the year as a whole.
At the start of today’s conference call, Check Point chairman and CEO Gil Shwed said, “The results will be less than we expected.” This is the understatement of the year. The company’s results will be quite dismal, and it is now possible to see how much Check Point needed to acquire Sourcefire to restore its growth momentum. It also demonstrates how, without Sourcefire, Check Point’s revenue in 2006 will show meager 5% in the least worse scenario, and will be zero in the worst case.
Check Point specializes in perimeter Internet security using firewalls and virtual private networks (VPNs), internal defense, web defense and defense of end products. The company’s market cap is $4.9 billion. In the wake of the cancellation of the acquisition of Sourcefire under pressure from the US administration, it was clear that Check Point would have to revise downwards its guidance for the year. Today’s surprise wasn’t only that the company’s results have been adversely affected, but the extent of the damage to its guidance for the first quarter.
What happened? In the press release, Shwed said, “We believe that our first quarter results were impacted by three main factors: first, the change in our decision to acquire Sourcefire; second, a shift in product mix toward increased longer term engagements such as software subscriptions and SmartDefense and decreased product revenues; and third, a slower growth pace in our industry.”
In other words, the company took three hits: two were internal, and one, it claims, was industry wide.
Check Point CFO Eyal Desheh said, “This isn’t the end of the world. I’m certainly not complacent, but we’re not heading for the bunkers shouting Armageddon. We’ll still post a profit of almost $80 million and a cash flow of almost $100 million for the quarter, and our profit levels will be high, and meet the test of business booms and busts. Our subsequent growth will come from a combination of acquisitions and in-house growth, we have a set of new products that will push the results forwards. We know we have to work hard, we’ve been here before, and didn’t like it at all. We worked hard and built the company. We’ll do it again now.”
2006 initially seemed to show signs of being a wonderful year. But in reality, Check Point will post $580-610 million revenue, similar to its $579.4 million revenue in 2005. This means that revenue growth will be 0-5.3%. Taking Sourcefire out of Check Point’s guidance cuts $40 million from the latter’s revenue. Check Point will post earnings per share of $1.16-1.24 for 2006, reflecting a net profit of $288.3-208.2 million. It will post a pro forma profit of $1.37-145 per share, reflecting a pro forma profit of $340.6-360.4 million. The good new is that the company said its deferred income for the first quarter rose by $10 million to almost $179 million.
“Globes”: This is a very severe warning.
Desheh “Let’s not exaggerate. Our profit is larger that what we posted last year, and our earnings per share is one cent less than the range in our guidance. The word 'severe' suits a situation in which profits are halved. I know that journalists love to write such headlines, but things should be taken in proportion. Its unpleasant and unfortunate, and believe me when I tell you that we’re taking today’s numbers very seriously, more seriously than anyone else. We’ll do things and take measures that will restore revenue and profit growth.”
Check Point talks about a market slowdown. The interesting point is that meanwhile, at least as the first quarter is concerned, there seems to be no slowdown among Check Point’s competitors and other IT security companies. Competitors such as Internet Security Systems Inc. (Nasdaq:ISSX), McAfee Inc. (NYSE:MFE), SonicWALL Inc. (Nasdaq:SNWL), WatchGuard Technologies Inc. (Nasdaq:WGRD) and Symantec Corp. (Nasdaq:SYMC) have not yet released figures for the first quarter, and it will be interesting to see what will happen when they do.
Desheh said, “The market isn’t terrible, but it’s weak. It isn’t plummeting, but growth is slow.” What about Check Point, which is unlikely to grow, not even slowly? “The guidance can be revised over the year. We’ve already seen such things happen,” he says optimistically.
Analysts believe that the acquisition of Sourcefire was important for Check Point to resume its growth momentum and supplement existing weakly performing InterSpect, Connectra and other product lines. Check Point will now have to find a new strategy to persuade the market that can grow internally or make prudent acquisitions. It is quite possible that the Sourcefire diverted management’s attention during the first quarter hurt Check Point’s results. Wall Street now believes that the company should now use its $1.74 billion in cash ($7.50 per share) to make acquisitions to boost its top line. The company has only made two such acquisitions in its history.
Published by Globes [online], Israel business news - www.globes.co.il - on April 4, 2006
Dubi
midastouch017
18 years ago
Lucent-Alcatel oui, Check Point non?
If Check Point from Israel - with its special relationship to the US - couldn’t buy a little American firm because of security issues, I can't see how Lucent will get US government approval.
Shlomi Cohen 28 Mar 06 11:30
There were no sharp fluctuations in indices during the course of trade last week. The three key indices have maintained a yield of around 5% since the beginning of the year. Only the small cap Russell 2000 Index has continued to turn in an exceptionally strong performance, relative to the other indices, with a yield of 12% since the beginning of 2006. Last week was dominated by news from the large companies, headed by Microsoft (NasdaqNM: MSFT). It was also a week without end of quarter profit warnings but plenty of announcements of massive mergers and buy outs, a trend that has become commonplace in recent months.
The fall in the price of Microsoft, following the announcement of the launch of the Vista operating system and the new version of Office, was more than adequately offset by the increase in the price of its rival Google (NasdaqNM: GOOG). Google finally managed to reverse the trend of recent weeks, ending the week up 7.6%, thanks to the news that it will join the S&P 500 Index of top US companies at the end of month. This will force trust funds across the globe that are committed to the precise composition of the index, to acquire substantial quantities of Google shares.
This index, as it happens, is open only to US companies and consequently Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA), despite trading at a value of $26 billion, cannot join while Comverse Technology (Nasdaq: CMVT) which has a value of $5 billion only, is on this index because it is registered as an US company. When the head of the committee responsible for selection of companies for listing on the S&P 500 was asked why Google had been accepted just 18 months after becoming a public company, he replied that it was because of its high profitability.
When your customers, telephony companies are merging left right and center, you have no choice, as a big telecommunications equipment provider, but to join forces with your competitors, even if you are American and they are French or vice versa. Three years ago at the height of the tension between the US and France over the war in Iraq, as French products were being banned throughout the US ,a merger between Lucent (NYSE: LU) and Alcatel (NYSE: ALA) would have been inconceivable.
The Alcatel board will meet to discuss the merger this coming Thursday, but the leak to the Wall Street Journal of the merger talks was enough to set the sector alight at the weekend. All the companies in the sector have been enjoying handsome gains, even if they have been performing poorly of late, reiterating the adage that claims that when the water level rises, all boats without exception will stay afloat.
One such company to cash in on the weekend bonanza was failing telecommunications provider 3Com (NasdaqNM: COMS), which published poor results on Thursday evening just as news of the aforementioned merger was coming through. The results sent the stock plunging sharply in late trading, but by the next day all had been forgotten as the excitement over the Lucent - Alcatel merger began to work its magic. 3Com was no exception, rising several percentage points to $5.30 from the low of $4.80 in late trading immediately after it posted its results.
Over at the leading Israeli representative in the sector, ECI Telecom (NasdaqNM: ECIL), they’re already popping the champagne corks, in the belief that it too will go under the block in the near future. In the meantime, they apparently want to complete a quick flotation before all the excitement dies down.
I feel there are lot problems in store for this $32 billion US-French merger and while most of these will be regulatory issues as usual, there will be no small amount of emotional problems too. If Check Point (Nasdaq: CHKP), which is located in a country considered a close friend of the US couldn’t manage to buy a diminutive little software company because of security related issues, I am at loss to understand how Lucent, which most certainly has many defense-related projects with the US government will receive approval for a merger with a company from a country, about which the hardline Rumsfeld team at the Pentagon are, to put it mildly, less than enthusiastic.
Why not an American director?
And now, from a pending merger we go to a merger that's petered out, Check Point and SourceFire. Check Point has been a public company for almost a decade. Its trading history can be divided evenly into five good years and five bad ones, and only heaven knows what lies ahead. The share has been deteriorating since 2001, nothing is going smoothly, and investors have become bitter.
To my regret, I can say with cynicism that the only sure thing about Check Point over the past year has been the sell-offs by parties-at-interest. Exactly a month ago, CEO Gil Shwed and senior VP Marius Nacht sold another million shares in line with a "blind share plan" announced a year ago, while company president Jerry Ungerman also let go of another 200,000 shares.
I can't even understand the logic operating behind a seemingly ordinary announcement about the nomination of a new director. I have nothing against Dan Propper, a veteran food industrialist with a brilliant track record, but what exactly will he contribute to Check Point? If you're going to add another director to the board, why not an American with a brilliant track record in technology, who might assist in future mergers that the company will undoubtedly want to make over there?
And if it's got to be an Israeli, why not a recently retired CEO, and if not someone from high-tech, wouldn't it be better to get Eli Hurvitz of Teva, who could contribute his international business experience? After all, within a few years he's taken a company like Check Point in terms of size, with a value of $5 billion, and quintupled it through mergers and acquisitions alone.
Published by Globes [online], Israel business news - www.globes.co.il - on March 28, 2006
http://www.globes.co.il/serveen//globes/docView.asp?did=1000076003&fid=1176
Dubi
midastouch017
18 years ago
Israeli Software Company Faces U.S. Probe
Thursday March 2, 5:28 am ET
By Ted Bridis, Associated Press Writer
Israeli Software Company Faces U.S. Probe Over Plans to Buy Smaller American Rival
WASHINGTON (AP) -- The same Bush administration review panel that approved a ports deal involving the United Arab Emirates has notified a leading Israeli software company that it faces a rare, full-blown investigation over its plans to buy a smaller rival.
The company was told U.S. officials feared the transaction could endanger some of government's most sensitive computer systems.
The objections by the FBI and Pentagon were partly over specialized intrusion detection software known as "Snort," which guards some classified U.S. military and intelligence computers.
Snort's author is a senior executive at Sourcefire Inc., which would be sold to publicly traded Check Point Software Technologies Ltd. in Ramat Gan, Israel. Sourcefire is based in Columbia, Md.
The contrast between the administration's handling of the $6.8 billion Dubai ports deal and the Israeli company's $225 million technology purchase offers an uncommon glimpse into the U.S. government's choices to permit some deals but raise deep security concerns over others.
Senate hearings over the ports deal were expected to continue Thursday.
The ongoing 45-day investigation into the Israeli deal is only the 26th of its type conducted among 1,600 business transactions reviewed by the Committee on Foreign Investments in the United States. The panel, facing criticism by Congress about its scrutiny of the ports deal, judges the security risks of foreign companies buying or investing in American industry.
In private meetings between the panel and Check Point, officials from the FBI and Defense Department objected forcefully to permitting any foreign company to acquire some sensitive Sourcefire technology for preventing hacker break-ins and monitoring data traffic, an executive familiar with the discussions told The Associated Press. This executive spoke on condition of anonymity because government negotiations are supposed to remain confidential.
Under the sale, publicly announced Oct. 6, Check Point would own all Sourcefire's patents, source-code blueprints for its software and the expertise of employees.
William Reinsch, a former senior U.S. official who participated in reviews under President Clinton, said the Israeli sale involves more dire security issues than the administration's recent approval for a Dubai-owned company to take over significant operations at six major American ports.
"This raises a lot more important issues," said Reinsch, a former Commerce Department undersecretary. "The most important case is where we're making an irrevocable technology transfer to a foreign party. Port operations raise security issues, but the ports are still in the United States."
The review panel privately notified Check Point on Feb. 6 it intended to fully investigate the transaction's security risks, the executive said. That was days before the furor erupted over the Dubai ports deal. Check Point disclosed the news to investors Feb. 13, but the announcement drew little attention despite escalating scrutiny and interest in Washington over such reviews.
The same panel had approved the ports deal Jan. 17 after a routine, 30-day review. In a highly unusual move, UAE-based DP World offered earlier this week to submit to a broader 45-day investigation to avert an impending political showdown between President Bush and Congress. That formal investigation has not yet started.
Check Point and Sourcefire declined to comment. Officials at the Defense Department, FBI and Justice Department also declined to comment.
A spokesman for the Treasury Department, which manages the review panel, declined to discuss details of the Check Point matter. Under the committee's rules, it launches full investigations when officials were unable to resolve concerns after a routine, 30-day review.
"Each case is different. Each has its own unique factors, entirely based on the merits of the company's case," said Tony Fratto, the Treasury Department's press secretary. "If people have outstanding objections, it would go to the investigation stage."
Sourcefire's protection and monitoring technology builds on the popularity of Snort, which was created by its chief technology officer and is distributed free. Unlike Sourcefire's commercial products, Snort's blueprints are open for inspection to assure it works as advertised. This makes it popular inside the U.S. intelligence community, even alongside more mainstream security products from Cisco Systems Inc. or Juniper Networks Inc.
Still, Sourcefire earned about 10 percent of its estimated $35 million in revenues last year guarding classified U.S. computers, according to Jeffrey W. Englander, a software security analyst at Boston-based America's Growth Capital, a boutique investment bank and research firm.
Englander predicted Check Point would agree to abandon Sourcefire's business inside classified government agencies rather than cancel the deal, if the government demands it. He dismissed the government's concern the sale may threaten U.S. security.
"I don't think it has a tremendous amount of weight," Englander said. "I'm not good with conspiracy theories."
http://biz.yahoo.com/ap/060302/ports_security_software.html?.v=4
Dubi
midastouch017
18 years ago
Check Point Takes Home Two Coveted Security Awards From 2006 SC Magazine Awards Gala
Friday February 17, 8:30 am ET
Best Enterprise Firewall and Best Remote Access VPN Solution for IPSec Awards Reinforce Check Point's Strength in the Security Industry
SAN JOSE, Calif.--(BUSINESS WIRE)--Feb. 17, 2006--Check Point® Software Technologies Ltd. (Nasdaq:CHKP - News), the worldwide leader in securing the Internet, today announced that it is has won two prestigious awards from SC Magazine, further indicating the company's leadership position in the Internet security industry. Check Point has claimed awards from SC Magazine for four consecutive years. VPN-1®/FireWall-1® NGX won the award for Best Enterprise Firewall, and Integrity(TM) SecureClient(TM) won the award for Best Remote Access VPN Solution for IPSec. SC Magazine's awards dinner and presentation was held on Tuesday, February 14, 2006, at The Fairmont Hotel in San Jose, CA, during the RSA Conference 2006.
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SC Magazine accepted more than 1,300 security and product service nominations for its awards program across 46 security categories, and Check Point VPN-1/FireWall-1 NGX and Integrity SecureClient were selected by the publication's readership as leading security solutions in the U.S. awards program. For a complete listing of this year's SC Magazine award winners in the U.S., please visit www.scawards.com.
VPN-1/FireWall-1 NGX, a tightly integrated combination of firewall, VPN and intrusion prevention, provides customers with the most intelligent, reliable security protection for stopping attacks while simplifying business communications across the Internet. Integrity SecureClient offers the most advanced remote connectivity and endpoint security available in a single solution, ensuring that every PC meets antivirus, patch, and other requirements before it gains access to the corporate network.
"SC Magazine's readers, who are also our customers, have come to know and trust Check Point's for its sophisticated security solutions that have been dominating the marketplace for well over a decade," said Ken Fitzpatrick, chief marketing officer for Check Point Software Technologies. "By winning SC Magazine awards for the fourth year in a row, we've demonstrated our continued innovation, and we will continue to stay in front of customer pain points in years forward."
To learn more about Check Point's award-winning security solutions, please visit http://www.checkpoint.com/products/index.html.
About Check Point Software Technologies Ltd.
Check Point Software Technologies Ltd. (www.checkpoint.com) is a leader in securing the Internet. It is a market leader in the worldwide enterprise firewall, personal firewall and VPN markets. Through its NGX platform, the company delivers a unified security architecture for a broad range of perimeter, internal, Web, and endpoint security solutions that protect business communications and resources for corporate networks and applications, remote employees, branch offices and partner extranets. The company's ZoneAlarm product line is the highest rated personal computer security suite, comprised of award-winning endpoint security solutions that protect millions of PCs from hackers, spyware and data theft. Extending the power of the Check Point solution is its Open Platform for Security (OPSEC), the industry's framework and alliance for integration and interoperability with "best-of-breed" solutions from over 350 leading companies. Check Point solutions are sold, integrated and serviced by a network of more than 2,200 Check Point partners in 88 countries and its customers include 100% of Fortune 100 companies and tens of thousands of businesses and organizations of all sizes.
About SC Magazine
SC Magazine is the largest circulation information security magazine in the world. It has three editions: USA, UK and Asia Pacific online with a global readership in excess of 88,000.
SC Magazine Awards 2006-US
With over 1,300 product and service nominations from over 330 competing companies globally, the SC Awards are the world's leading awards program for the information security industry.
New this year, the SC Magazine Awards have three separate award programs for the US, UK, and Asia Pacific regions. The awards are composed of the Reader Trust Awards -- voted on by SC readers in each region, and the excellence and professional awards that are judged by a panel of the industry's top talents. Winners were announced at the 2006 SC Awards Gala on February 14th, 2006, which took place at the Fairmont Hotel in San Jose, California.
To view the full list of winners or to learn more about the SC Magazine Awards 2006-US please visit: www.scawards.com.
©2003-2006 Check Point Software Technologies Ltd. All rights reserved.
Check Point, Application Intelligence, Check Point Express, the Check Point logo, AlertAdvisor, ClusterXL, Cooperative Enforcement, ConnectControl, Connectra, CoSa, Cooperative Security Alliance, Eventia, Eventia Analyzer, Eventia Reporter, FireWall-1, FireWall-1 GX, FireWall-1 SecureServer, FloodGate-1, Hacker ID, IMsecure, INSPECT, INSPECT XL, Integrity, InterSpect, IQ Engine, NGX, Open Security Extension, OPSEC, Policy Lifecycle Management, Provider-1, Safe@Home, Safe@Office, SecureClient, SecureKnowledge, SecurePlatform, SecuRemote, SecureXL Turbocard, SecureServer, SecureUpdate, SecureXL, SiteManager-1, SmartCenter, SmartCenter Pro, Smarter Security, SmartDashboard, SmartDefense, SmartLSM, SmartMap, SmartUpdate, SmartView, SmartView Monitor, SmartView Reporter, SmartView Status, SmartViewTracker, SofaWare, SSL Network Extender, Stateful Clustering, TrueVector, Turbocard, UAM, User-to-Address Mapping, UserAuthority, VPN-1, VPN-1 Accelerator Card, VPN-1 Edge, VPN-1 Pro, VPN-1 SecureClient, VPN-1 SecuRemote, VPN-1 SecureServer, VPN-1 VSX, VPN-1 XL, Web Intelligence, ZoneAlarm, ZoneAlarm Pro, Zone Labs, and the Zone Labs logo, are trademarks or registered trademarks of Check Point Software Technologies Ltd. or its affiliates. All other product names mentioned herein are trademarks or registered trademarks of their respective owners. The products described in this document are protected by U.S. Patent No. 5,606,668, 5,835,726, 6,496,935, 6,873,988 and 6,850,943 and may be protected by other U.S. Patents, foreign patents, or pending applications.
http://biz.yahoo.com/bw/060217/20060217005200.html?.v=1
Dubi
midastouch017
18 years ago
Bush checks Check Point
The Sourcefire acquisition will ultimately be referred to the US president, spoiling the numbers.
Gitit Pincas 14 Feb 06 20:07
Most of the time, dealing with government authorities - American or Israeli - is not exactly a pleasant stroll in the park. Acquisitions of US companies by Israel ones form an outstanding example. Israeli companies often find themselves producing yet another permit, and yet another professional opinion, and still, months pass, and the final approval is not forthcoming. Ask Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA ; TASE: TEVA). The final straight of the $8.6 billion acquisition of Miami-based Ivax was more drawn-out than in the case of other acquisitions.
Check Point's (Nasdaq: CHKP) acquisition of Columbia, Maryland-based Sourcefire Network Security is no different. The deal was supposed to close by the end of the first quarter of 2006, but it is now feared that it may be delayed. Internet security giant Check Point has obtained approval from the US Federal Trade Commission, which is usually the final obstacle, for the $225 million acquisition. Sourcefire provides solutions that prevent unwelcome intrusion into networks in real-time.
However, the need for another approval is delaying the deal. Yesterday, the company announced that it had been notified by the Committee on Foreign Investment in the United States (CFIUS) that the deal had "moved into the investigative stage." CFIUS is a federal body made up of representatives of the cabinet and of government departments such as Justice, Treasury, Commerce, and Homeland Security. It is meant to examine whether the acquisition of a US company by a non-US one poses a threat to US national security. The committee operates under what is known as the Exon-Florio legislation.
CFIUS has 30 days in which to examine an acquisition. It can extend that period by 45 days for the purposes of investigation. This is exactly what has happened to Check Point. What's more, once the status of an examination becomes "investigative", the acquisition comes under the purview of none other than US President George W. Bush. At the end of the 45 days, CFIUS submits a report to the president, who must announce his decision within 15 days.
All in all then, taking into account the initial 30 day period, the 45 day investigation period, and the 15 days for the presidential decision, it can take 90 days from the initial examination of the application until the president informs Congress whether he chooses to block the deal or not. For Check Point, only the first 30 days have gone by, so that, theoretically, closure of the deal could be put back to the second quarter, which is not in line with the projections.
The possible delay will have a direct impact on Check Point's guidance. Two weeks ago, Check Point management said the deal would take place towards the end of the first quarter, (that is, by the end of March), and that annual projections included a contribution from Sourcefire. Annual revenue will be $661 million, allowing for a 5% margin of error either way, and earnings per share will be $1.4-1.47 ($348-365.4 million net profit). These numbers discount acquisition costs.
In the first quarter, Check Point expects revenue of $145-155 million and earnings per share of $0.32-0.34 ($79.5-84.5 million net profit). Several analysts have already factored Sourcefire's numbers into their models. Now, there is a considerable element of uncertainty.
CFIUS has played an active role in several acquisitions in the past few years. A recent example is the sale of IBM's portable computer business to Chinese company Lenovo for $1.25 billion. In that instance too, fears arose about the possible threat to US national security if the Chinese government were to exploit the sensitive installations Lenovo was buying in the US for espionage purposes.
In the case of Check Point and Sourcefire, it is still not clear what the cause pf CFIUS's concern is. It is a fairly rare occurrence for it to choose to investigate such a low-value deal.
Published by Globes [online], Israel business news - www.globes.co.il - on February 14, 2006
http://www.globes.co.il/serveen/globes/DocView.asp?did=1000061645&fid=980
Dubi
midastouch017
18 years ago
Metalink: Risky, but interesting
Metalink has a technological advantage again, but will chairman and CEO Tzvi Shukhman’s reluctance to cooperate wreck the company’s chances, as it has before?
Shlomi Cohen 7 Feb 06 16:58
From an Israeli standpoint, it will interesting to see Cisco Systems’ (Nasdaq: CSCO) results in the fourth quarter of 2005 for the information security sector, where it competes with Check Point (Nasdaq: CHKP). At a Merrill Lynch conference last Thursday, Check Point president Jerry Ungerman explained that Cisco and Juniper Networks (Nasdaq: JNPR) sold routers and switches, but that most companies, particularly the larger ones, wanted an additional layer of security, and usually went to pure information security companies like Check Point to get it. He said that Check Point would hold its annual analysts day, which it usually does early in the year, during the second quarter this year, and would explain at length how it plans to accelerate its growth.
The second layer of information security is same target marked by Check Point competitor Juniper, which acquired NetScreen Technologies two years ago. Ungerman says that NetScreen has “vanished”, meaning that it is no longer the same competitive factor that it was when it was an independent company. NetScreen is apparently set for a new incarnation as Juniper’s information security division, with a series of new products; that, at any rate, is what Reuters says. NetScreen’s products include anti-virus software, protection for enterprise branches, protection of communications with employees at remote locations and at home, and so forth. Juniper regards Cisco as a bigger competitor than Check Point, since Cisco offers its own security products, in addition to routers and switches.
Risky, but interesting
One of the small and risky companies in my portfolio is Metalink (Nasdaq: MTLK;TASE: MTLK), which published its results last week. Metalink is risky because it is like a start-up, with $4.4 million in sales and a $2.9 million loss in the fourth quarter of 2005. Fortunately for Metalink, it has $38 million in cash, the result of its large secondary issue in 2000, before the market collapsed.
Although risky, Metalink is also interesting for people willing to take a risk for a chance at a pretty big jackpot. Between the lines of its announcements (the company does not conduct conference calls because no one comes on the line with questions; I like companies like that), I detect that, this time, Metalink chairman and CEO Tzvi Shukhman is taking a different tack with the wireless chip he developed, rather than the unsuccessful path he took with other chips in recent years.
Shukhman is apparently cooperating with large semiconductor and equipment manufacturers in order to quickly leverage the chip, which still enjoys a technological advantage over giants like Broadcom (Nasdaq: BRCM) and Marvell Technology Group (Nasdaq: MRVL). In an exhibition in Las Vegas early this year, Metalink’s exhibit was swamped with interested visitors, because it dealt with the hottest thing in today’s communications sector high definition television (HDTV) home broadcasts over the Internet and on wireless local area networks (WLAN), meaning between different rooms in digital homes. Metalink says that its WLANPlus chip is 5-10 times as fast at doing this as other chips.
Metalink’s very high-speed digital subscriber line (VDSL) chip, with Internet speed of 100 mega, was also a big breakthrough when it was displayed several years ago. At that time, Shukhman’s attempt to conquer the world almost by himself failed, and he also chose a standard that did not pass. His competitor, then a very small private company named Ikanos Communications (Nasdaq: IKAN), chose the standard that was accepted. Today, Ikanos is the queen of VDSL chips almost everywhere in the world, and its share soared, reaching $21 last Friday, compared with $12 in the company’s September 2005 offering.
As far as the standard for Metalink’s wireless chip is concerned, Shukhman did his homework this time. All the semiconductor and consumer electronics giants recently approved the draft 802.11n standard, which will go into effect at the end of this year. Analysts expect the market for chipsets using this standard to reach $2 billion a year in 2008. Broadcom and Marvell are not waiting for Shukhman; they are working at full speed to come out with a better chip. The $64,000 question is how Shukhman will play his hand against them in this poker game, during the short window of opportunity left to him. He will also get offers to acquire the entire company, but past experience shows that he is in no hurry to sell, which makes the share very risky.
Published by Globes [online] - www.globes.co.il - on February 7, 2006
http://www.globes.co.il/serveen//globes/docView.asp?did=1000059012&fid=1176
Dubi
midastouch017
18 years ago
Tue: Check Point check-up
The slide in Check Point’s share made me decide to take a close look. I’ve never seen anything so healthy.
Shlomo Greenberg 7 Feb 06 16:51
I went over Check Point’s (Nasdaq: CHKP) financial report with a fine-tooth comb last weekend. I examined every number, shook it, held it up to the light, dipped it in water, dried it out, and examined it again. Why did I do this? Because, as someone who constantly says that, according to the results, the Check Point share offers the best economic value of all the technology companies I know (and I know a lot of them), it seemed that I must be overlooking something. Finally, I asked one of my friend Steven’s financial planners to check it out for me, because I thought that perhaps American eyes would see something that I missed. The bottom line is that everyone says that everything is fine. If only all the world’s companies reported such results, and gave such guidance. Armed with this ultimate weapon, I returned to the arena.
ICAP analyst Richard Williams reiterated his “Sell” recommendation for Check Point on Sunday, with a target price of $16.50, 21% below the current market price. What is his argument? "The four-quarter seasonally adjusted metric shows slowing in everything but services, a typical reaction slacking demand by a software vendor. We suspect that the weakness will continue into the first half of 2006, if not beyond," he says, adding that last week's GDP report, which showed government hardware/software spending growth of 3.5% versus expectations of 12%, "fully confirms our bearish outlook on the state of IT spending.”
I remind Williams and some other analysts that 3.5% is still a pretty good rise, but if they want 12.5% and get 3.5%, they are obviously very disappointed. I read what he wrote, and immediately returned to the diagram to see why this share should fall. Could he be right that Check Point’s going downhill? Let’s take a look at a few facts, and then we’ll see why this man is so sure of himself.
We’ll start with the fact that the company made a $319.6 million net profit on $579.35 million in sales in 2005. That means that for every dollar that the company sells, it banks a little over $0.55, after deducting taxes. Check Point made a $248.4 million profit on $515.4 million in sales in 2004, which means that it salted away $0.482 for each dollar in sales. From this angle, things got better, since the company’s profit margin went up by $0.07 per dollar, a 14% increase.
Williams has nothing to say about these facts, so he points out that what stood out is weakness in all Check Point’s sales items, except for customer service. I checked this, too, and the same rule applies to it that applies to 3.5% government investment in IT. He’s right about one thing. The most significant growth in the company’s business, over 34%, was in services, but this whole activity accounts for 10% of Check Point’s revenue. Heavier areas, such as software purchases, rose “only” 22%. Actually, I didn’t see even a single item that fell or weakened, so it may very well be that Williams drew conclusions about Check Point on the basis of that 3.5%. It’s not that he saw weakness; what really happened was that he expected 34% growth in all items, and that didn’t happen.
What’s more interesting is that the fourth quarter of the year was even better for Check Point. The company made a net profit of $89.24 million on sales of $156.1 million -- $0.572 for every dollar in sales. I looked, and found no trace of weakness in this quarter, either. I also checked whether such a high profit might have been the result of a slight finagling of the books; perhaps they deliberately cut R&D or administrative spending, or something else. But wasn’t so. All expenses rose. What about cash flow? First of all, they have $1.74 billion in cash, compared with $1.58 billion at the end of 2004. That’s a fine increase, especially if you take into account the $237 million that Check Point spent on buying back its own shares, plus the acquisition of Zone Labs. In short, Check Point has no problems -- at least not at the moment, and not according to anything known.
Why did the share respond so weakly to Check Point’s results? In their reviews in the press, analysts asserted that Check Point CEO Gil Shwed’s guidance for 2006 was disappointing. I also examined that claim. In a conference call after the report was published, Shwed said that the company’s sales would total $661 million in 2006, plus/minus 5%. He claimed that profit per share would be $1.40-1.47. That’s disappointing? The consensus of 655 analysts was $1.40 profit per share on sales of $655 million. Where’s the disappointment?
I read the entire transcript of the conference call by Shwed, president Jerry Ungerman, and executive VP and CFO Eyal Desheh. What they said was extremely positive. No embarrassment or difficulty of any kind was exhibited. Incidentally, the conference call appears on the www.softwarestockblog.com website. After looking at it inside and out, upside down and right side up, I reiterate I don’t know of any company that makes profits like this, that is so strong, and whose future is as secure as that of Check Point. It doesn’t matter what a few analysts who saw a fall in some place or other say.
It may very well be that the software market will suffer from a decline in investment. That’s possible, but by no means sure. The fact that Symantec (Nasdaq: SYMC) and McAfee Security for Consumers missed their guidance doesn’t mean anything about Check Point, which didn’t fall short of its guidance at all. Let those who believe that investment in software and its infrastructure is a thing of the past buy gold and oil. Let those who believe that the US will retract its investments buy a recording of President Bush’s latest speech. The rest are recommended to consider buying Check Point, because it’s still the cheapest and most economically worthwhile technology share in town.
Published by Globes [online] - www.globes.co.il - on February 7, 2006
Dubi
midastouch017
18 years ago
Leading Communications Carrier Connects With Check Point for Security Implementation
Wednesday February 1, 8:30 am ET
China Telecom Achieves Security and Management Goals With Check Point Solutions
Distributor Serves Key Role in China Telecom Security Implementation
REDWOOD CITY, Calif.--(BUSINESS WIRE)--Feb. 1, 2006--Check Point® Software Technologies Ltd. (Nasdaq:CHKP - News), the worldwide leader in securing the Internet, today announced that China Telecom, one of the largest telecommunications carriers in China, has successfully leveraged Check Point's market-leading security solutions to fit the needs of its growing, diverse customer base. By using Check Point solutions, China Telecom achieved maximized, reliable security protection and simplified, centralized management.
China Telecom, a Global 500 company, offers a complete set of communication services to its diverse customer base. To maintain its positive reputation in the telecommunications industry, China Telecom required a security solution that would stand up to the rigorous requirements for the stability, reliability and security of its Data Communications Network (DCN). With such heavy network traffic, China Telecom needed a security solution that would prevent unauthorized access between systems and enable their DCN to remain up-and-running 24 x 7. In addition, the company needed a solution that would allow IT administrators to manage remote operations in Beijing, Shanghai and Wuhan from one central location.
For consulting and security expertise, China Telecom turned to Century Technology Company Limited, a local solution provider/distributor company in Beijing that focuses on providing security solutions to a number of local and multinational enterprises, banks, telcos and operators, and state-owned organizations. "As a leading player in the telecom industry, China Telecom can't afford to have any network downtime. They need to deliver uninterrupted communication services to more than 280 million customers," said Mr. Andrew Mui, Managing Director of Century Technology. "We recommended that China Telecom purchase solutions from Check Point because it was the only security vendor that could meet their stringent security and management requirements. China Telecom has operations in multiple locations, and a solution that has the ability to streamline security management was required for the company to achieve maximum operational efficiency."
By using Check Point solutions, China Telecom has resolved its security issues and realized the following benefits:
Reduced Costs -- China Telecom is able to centrally manage a dispersed network from one central location, reducing security management costs and freeing its IT staff to perform other critical functions.
Maximized Security Protection -- China Telecom enjoys proactive security protection that prevents both known and unknown attacks, allowing the company to focus on running their telecommunications business instead of worrying about Internet attacks.
Enhanced Network Reliability -- China Telecom experiences faster network speeds and no service interruptions, ensuring that business runs smoothly at all times.
"Check Point has been resolving customer security issues for over a decade and has consistently been successful at alleviating the most pressing pain points by delivering reliable security protection and simplified security management," said Cedric Chan, vice president, North Asia sales for Check Point Software Technologies. "With 100% of the Telecom companies in the Global 500 index relying on Check Point solutions, we are helping China Telecom meet their current business needs and scale upwards to deliver new, exciting solutions to their customers."
About China Telecom
China Telecom, the largest national telecommunication operator in China, provides a full array of communication services to its customers. This full service offering is reflected by its status among the largest 500 companies in the world based on total revenue as listed by Fortune magazine in its Global 500 ranking.
About Check Point Software Technologies Ltd.
Check Point Software Technologies Ltd. (www.checkpoint.com) is a leader in securing the Internet. It is a market leader in the worldwide enterprise firewall, personal firewall and VPN markets. Through its NGX platform, the company delivers a unified security architecture for a broad range of perimeter, internal, Web, and endpoint security solutions that protect business communications and resources for corporate networks and applications, remote employees, branch offices and partner extranets. The company's ZoneAlarm product line is the highest rated personal computer security suite, comprised of award-winning endpoint security solutions that protect millions of PCs from hackers, spyware and data theft. Extending the power of the Check Point solution is its Open Platform for Security (OPSEC), the industry's framework and alliance for integration and interoperability with "best-of-breed" solutions from over 350 leading companies. Check Point solutions are sold, integrated and serviced by a network of more than 2,200 Check Point partners in 88 countries and its customers include 100% of Fortune 100 companies and tens of thousands of businesses and organizations of all sizes.
©2003-2006 Check Point Software Technologies Ltd. All rights reserved.
Check Point, Application Intelligence, Check Point Express, the Check Point logo, AlertAdvisor, ClusterXL, Cooperative Enforcement, ConnectControl, Connectra, CoSa, Cooperative Security Alliance, Eventia, Eventia Analyzer, Eventia Reporter, FireWall-1, FireWall-1 GX, FireWall-1 SecureServer, FloodGate-1, Hacker ID, IMsecure, INSPECT, INSPECT XL, Integrity, InterSpect, IQ Engine, NGX, Open Security Extension, OPSEC, Policy Lifecycle Management, Provider-1, Safe@Home, Safe@Office, SecureClient, SecureKnowledge, SecurePlatform, SecuRemote, SecureXL Turbocard, SecureServer, SecureUpdate, SecureXL, SiteManager-1, SmartCenter, SmartCenter Pro, Smarter Security, SmartDashboard, SmartDefense, SmartLSM, SmartMap, SmartUpdate, SmartView, SmartView Monitor, SmartView Reporter, SmartView Status, SmartViewTracker, SofaWare, SSL Network Extender, Stateful Clustering, TrueVector, Turbocard, UAM, User-to-Address Mapping, UserAuthority, VPN-1, VPN-1 Accelerator Card, VPN-1 Edge, VPN-1 Pro, VPN-1 SecureClient, VPN-1 SecuRemote, VPN-1 SecureServer, VPN-1 VSX, VPN-1 XL, Web Intelligence, ZoneAlarm, ZoneAlarm Pro, Zone Labs, and the Zone Labs logo, are trademarks or registered trademarks of Check Point Software Technologies Ltd. or its affiliates. All other product names mentioned herein are trademarks or registered trademarks of their respective owners. The products described in this document are protected by U.S. Patent No. 5,606,668, 5,835,726, 6,496,935, 6,873,988 and 6,850,943 and may be protected by other U.S. Patents, foreign patents, or pending applications.
http://biz.yahoo.com/bw/060201/20060201005350.html?.v=1
Dubi
midastouch017
18 years ago
Check Point Software Reports 2005 Fourth Quarter and Annual Financial Results
Monday January 30, 4:00 am ET
Fourth Quarter EPS Increased 21% Year Over Year
Strong Growth in Deferred Revenues
REDWOOD CITY, Calif.--(BUSINESS WIRE)--Jan. 30, 2006--Check Point® Software Technologies Ltd. (NASDAQ:CHKP - News), the worldwide leader in securing the Internet, today announced its financial results for the fourth quarter and year ended December 31, 2005.
"Check Point's fourth quarter business provided a strong finish to the year 2005," said Gil Shwed, chairman and chief executive officer of Check Point Software. "Our fourth quarter and annual 2005 financial results reached record levels across earnings per share, revenues, deferred revenues, and cash balances."
Financial Highlights for the Fourth Quarter of 2005:
Revenues: $156.1 million, an increase of 9% compared to $143.0 million in the fourth quarter of 2004.
Net Income: $89.2 million, an increase of 17% compared to $76.4 million in the fourth quarter of 2004. Net income excluding acquisition related charges(1) was $90.9 million, an increase of 15% compared to $78.7 million in the fourth quarter of 2004.
Earnings per Diluted Share: $0.36, an increase of 21% compared to $0.30 in the fourth quarter of 2004. EPS excluding net acquisition related charges was $0.37, an increase of 20% compared to $0.31 in the fourth quarter of 2004.
Deferred Revenues: $169.0 million, an increase of $24.7 million or 17% over deferred revenues as of September 30, 2005.
Share Repurchase Program: During the fourth quarter of 2005, Check Point purchased 1.25 million shares at a total cost of approximately $27.5 million. In 2005, the company purchased a total of 10.6 million shares for a total cost of $237 million.
Financial Highlights for the Year Ended December 31, 2005:
Revenues: $579.4 million, an increase of 12% compared to $515.4 million for the year ended December 31, 2004.
Net Income: $319.7 million, an increase of 29% compared to $248.4 million for the year ended December 31, 2004. Net income excluding acquisition related charges was $326.9 million, an increase of 17% compared to $278.7 million for the year ended December 31, 2004.
Earnings per Diluted Share: $1.27, an increase of 33% compared to $0.95 for the year ended December 31, 2004. EPS excluding net acquisition related charges was $1.30, an increase of 21% compared to $1.07 for the year ended December 31, 2004.
Cash and Investments Balance: $1.74 billion as of December 31, 2005.
During the year, Check Point introduced many products and technologies, as well as continued to expand and unify the portfolio of security solutions. The company also garnered many awards. Key business highlights, product introductions and accolades include the following:
Business Highlights and Introductions during 2005
Expanded Industry's only Unified Security Architecture -- In 2005, Check Point launched the NGX(TM) platform, a major upgrade to Check Point's core technology. It is the unified security platform for perimeter, internal and Web security solutions enabling enterprises of all sizes to reduce the cost and complexity of security and ensure that their security systems can be easily extended to adapt to new and evolving threats.
Internal Security, Intrusion Prevention & Web Security -- During the year we have seen strong growth in our Web-security and SSL VPN product family, Connectra(TM), with revenue growth of over 250% for the year. We have also expanded our internal security family, InterSpect(TM), that combines active intrusion prevention, network zone segmentation and quarantine capabilities. We look forward to enhancing our technology with the pending acquisition of Sourcefire, Inc. A definitive agreement was reached in October 2005. We have received US anti-trust approval and we are waiting for a determination on our pending application with the Committee on Foreign Investment in the U.S. (CFIUS).
New Product Family for Security Event Management, Eventia(TM) -- In early 2005, Check Point introduced the new Eventia(TM) family that allows IT professionals to collect, analyze, correlate and report on security events, and enables a higher level of intelligence and protection of the network security.
Introduced New Unified Threat Management (UTM) Solutions: Check Point Express CI(TM) and Safe@Office® 500 appliance series -- Check Point has entered the market for Unified Threat Management Solutions gateways that include in a single product integrated firewall, VPN, antivirus, intrusion prevention and many other security technologies. These two product families enable affordable security for small and medium businesses ranging from $400 to $15,000 per gateway.
Expanded Endpoint Security for Consumers and Enterprises -- ZoneAlarm® 6.0 provides new multi-layered security for consumers and debuted with a new OSFirewall(TM) and Anti-Spyware solution to prevent the most dangerous Internet threats including spyware, rootkits, viruses, and more from invading PCs. Integrity(TM) delivers the most complete endpoint security solution, including intrusion prevention, outbound threat protection, access policy enforcement, advanced server and policy automation, to proactively protect PCs and enterprise networks from the newest worms, viruses, spyware, and hacker attacks.
Partial List of Awards & Industry Recognitions in 2005:
Recognition by Industry Analyst Firms:
Tolly Group Tests Confirm Check Point Solution Completeness and Lowest TCO -- Tests by the Tolly Group confirmed that Check Point provides the broadest breadth of security coverage at the lowest Total Cost of Ownership (TCO) for today's complex security vulnerabilities in comparison to competing solutions from Cisco and Juniper.
Gartner Group Prestigious Magic Quadrant(TM) Report Leader -- Check Point positioned in the leader quadrant of Gartner's Magic Quadrant for Network Firewalls. This report evaluates both network and application firewall vendors on their ability to execute and completeness of vision.
META Group Industry Leader Position in METAspectrum(TM) Report -- Check Point was ranked as a market leader in META Group's METAspectrum report on Network Intrusion Control Systems. Of 12 vendors, Check Point ranked the highest for "performance" -- a category that measures the company's technology, services pricing and financial standing.
Frost & Sullivan Global Market Leadership for Endpoint Security Solutions -- Check Point, achieved prestigious recognition from Frost & Sullivan that bestowed Check Point Integrity(TM) endpoint security solution with their renowned Global Market Leadership Award for outstanding market share, revenue growth rate, profitability and market and technology innovation.
Awards and Recognition for Check Point's Partner Program:
CMP's VARBusiness Magazine:
Top Channel Executive: Kevin Maloney, Vice President, Worldwide Sales
Five-Star Rating: Check Point Valued Partner Program
2005 Annual Report Card: Check Point Achieves Exceptional Partner Satisfaction
Computer Reseller News (UK):
Security Vendor Partner of the Year
Awards for Products & Technology:
Check Point VPN-1® Pro: the industry's most proven and secure VPN
2005 Global Best Enterprise Security Solution and Best Firewall -- SC Magazine
Editor's Choice -- China Information World
Best Firewall/VPN -- Computerworld Hong Kong
Readers Choice, Best Firewall -- Computerworld Malaysia, Computerworld Singapore
Best Firewall -- Relatorio Bancario, Brazil
Readers' Choice, Best Server/Standalone Firewall -- Windows IT Pro
ZoneAlarm® Security Suite: complete internet protection for consumers
2005 Global and European Best SOHO Security Solution -- SC Magazine, SC Magazine (UK)
2005 Readers' Choice, Best Desktop Firewall -- Windows IT Pro
Editors' Choice, Desktop Security -- CNet
Editors' Choice, Best Security Suite -- PC Magazine
Editor's Choice, Best Security Suite -- LAPTOP Magazine
Check Point Integrity(TM): complete solution for securing internal-network endpoint PCs
2005 European Best Enterprise Security Solution -- SC Magazine
Endpoint Security Evaluation Winner -- Information Security Magazine
Unified Threat Management (UTM) Solutions for Small and Mid-Size Businesses
Midmarket Product of The Year, Check Point Express CI(TM) -- VARBusiness
Editor's Choice, Safe@Office -- InformationWeek
Excellent Security, Safe@Office -- ProtectStar, Germany
Mr. Shwed continued, "We've continued our expansion in 2005 by strengthening our Unified Security Architecture and delivering a unique set of integrated network security solutions for our customers. We believe that our innovative technology, breadth of solutions and customer acceptance will serve as the foundation for our future success."
Conference Call and Webcast Information
Check Point will host a conference call with the investment community on January 30, 2006 at 8:30 AM ET/5:30 AM PT. To listen to the live webcast, please visit Check Point's website at http://www.checkpoint.com/ir. A replay of the conference call will be available through February 13, 2006 at the Company's website http://www.checkpoint.com/ir or by telephone at (973) 341-3080, pass code 6888307.
Dubi
midastouch017
18 years ago
>>Personally, I don’t understand the great hysteria about M-Systems’ low gross profit margin, as long as its sales and profits are soaring, and as long as the company doesn't stop innovating. It’s true that I would prefer Check Point’s (Nasdaq: CHKP) gross profit margin. At the end of the day, however, M-Systems CFO Ronit Maor is going to the bank to deposit $0.50 per share in profit, more than double the preceding year. Even with his company’s astronomical profit margin, Check Point executive VP and CFO Eyal Desheh will deposit $0.35-0.37 per share in profit, compared with $0.31 in the preceding year profit growth of only 20% at most. <<
The M-Systems paradox
That which made investors turn against M-Systems should have given them confidence.
Shlomi Cohen 29 Jan 06 11:46
M-Systems Flash Disk Pioneers (Nasdaq: FLSH) CEO Dov Moran is an excellent entrepreneur, inventor and manager. After 13 years in charge of a public company, however, he still has trouble fathoming Wall Street’s unwritten rules. Not issuing guidance for the year at the end of January is like telling investors, “I have no idea what will happen tomorrow morning.” Believe me, he has got an idea, not only about this year, but also about quite a few years ahead. How do I know? For example, M-Systems hasn’t finished the second building on its site in Kfar Sava, and it’s already digging the foundations for a third building. That means that Moran knows what the company’s needs will be in 2008. At this rate, he could soon launch a real estate fund entitled M-Systems REIT.
What investors discovered last week about M-Systems, which deeply disappointed them, was that the company paid a heavy price for everything it sold in the fourth quarter of 2005 beyond its original sales guidance of $40 million. The reason is that M-Systems bought its chips, its raw materials, at high prices on the open market, because it reached the limit of its low-price supply contracts.
That’s the price that M-Systems is paying for two things. The first is not having its own fab, like SanDisk Corporation (Nasdaq: SNDK), for example. The second is the strategic decision it made not to repeat its mistakes of late 2003-early 2004, when it bought large stocks in advance at high prices, while the market chip shortage later turned into a surplus, and M-Systems eventually had to write off inventory. The ridiculous aspect is that investors prefer that M-Systems should not take the risk of owning a fab, and should not hold high stocks.
Personally, I don’t understand the great hysteria about M-Systems’ low gross profit margin, as long as its sales and profits are soaring, and as long as the company doesn't stop innovating. It’s true that I would prefer Check Point’s (Nasdaq: CHKP) gross profit margin. At the end of the day, however, M-Systems CFO Ronit Maor is going to the bank to deposit $0.50 per share in profit, more than double the preceding year. Even with his company’s astronomical profit margin, Check Point executive VP and CFO Eyal Desheh will deposit $0.35-0.37 per share in profit, compared with $0.31 in the preceding year profit growth of only 20% at most.
By the way, in the fourth quarter of 2005, M-Systems passed Check Point for the first time in both quarterly sales and profit per share, even though some say this is like comparing apples and oranges, because there is no connection between their respective sectors. In my opinion, this is an important milestone in the history of the flagships of Israeli technology.
In their rush to sell M-Systems’ shares last week (trading volume set a record of almost 10 million shares on Wednesday), investors apparently didn’t notice two important comments by Moran about 2006. The first was that he hopes growth will be at least as high as in 2005. In my opinion, on the basis of this declaration, and even though the company will issue guidance only in April, most analysts will now include an expected sales turnover this year of at least $750 million in their reviews.
Sales of $750 million means at least 38% growth this year, compared with 55% last year. If management’s guidance in April says this, and assuming that, as in all recent years, the company meets its guidance, then M-Systems’ current p/e ratio is absurd, not to mention its sales multiple. At a share price of $28.36, the p/e ratio has already plunged below 20, because it’s possible that these sales could easily turn into a profit of over $1.50 per share. M-Systems’ sales multiple has fallen to 1.7. After publishing its results, SanDisk will probably be traded at a p/e ratio of 30, and a sales multiple of 5.
Moran’s other important statement was that M-Systems would unveil “a significant technological breakthrough” this year, which would improve its cost structure, i.e. its low gross profit margin. Deutsche Bank analyst Dan Harverd hurried to raise his target price for the share to $41. He reminded us that Moran has used the expression “technological breakthrough” only three times previously: when he announced the DiskOnKey (DOK), the Mobile DiskOnChip (MDOC), and the U3. Each of these three growth engines is contributing, and will contribute, hundreds of millions of dollars a year in sales to M-Systems.
Published by Globes [online] - www.globes.co.il - on January 29, 2006
http://www.globes.co.il/serveen/globes/DocView.asp?did=1000055225&fid=980
Dubi
midastouch017
18 years ago
D-Link and Check Point Form Strategic Partnership to Deliver Unified Threat Management Solutions to Small and Medium-Sized Businesses
Monday January 16, 9:05 am ET
REDWOOD CITY, Calif. and FOUNTAIN VALLEY, Calif., Jan. 16 /PRNewswire-FirstCall/ -- D-Link, the end-to-end networking solutions provider for consumers and business, and Check Point Software Technologies Ltd. (Nasdaq: CHKP - News), the worldwide leader in securing the Internet, today announced an agreement to co-develop Unified Threat Management solutions for small and medium businesses.
(Logo: http://www.newscom.com/cgi-bin/prnh/20010327/DLINKLOGO )
D-Link will extend its current NetDefend line of business-class security solutions with security appliances based on Check Point's Embedded NGX(TM) with Application Intelligence (TM) technology, which incorporates Check Point's market-leading firewall and VPN software. The resulting D-Link NetDefend security appliances will offer SMBs an all-in-one network security solution combining an enterprise-class stateful inspection firewall, gateway antivirus, intrusion prevention, remote-access virtual private networking, and content filtering into a single, easy-to-use platform.
The NetDefend appliances will also come equipped with robust management features such as auto updating, built-in interfaces for outsourced 3rd party security management, and Check Point's optional subscription services for ongoing protection from new and emerging threats.
"Teaming with a respected partner such as Check Point allows us to expand and further fortify our already robust NetDefend security family of products for small and medium business," said Keith Karlsen, executive vice-president with D-Link. "Our SMB customers will benefit from the combined experience and resources of two proven industry leaders with best-in-class protection and performance for their network solutions."
"By combining Check Point's award-winning security technology with D-Link's networking expertise and relationships with value-added resellers, more small to medium businesses than ever will have access to a powerful all-in-one Internet and network security solution," added Paul Weinstein, vice-president of business development with Check Point. "This new relationship will strategically place both companies in a position to change the competitive dynamic in this market space, and we are pleased to team up with an industry leader like D-Link."
About D-Link
D-Link is the global leader in connectivity for small, medium and large enterprise business networking. The company is an award winning designer, developer, and manufacturer of networking, broadband, digital electronics, voice and data communications solutions for the digital home, Small Office/Home Office (SOHO), Small to Medium Business (SMB), and Workgroup to Enterprise environments. With millions of networking and connectivity products manufactured and shipped, D-Link is a dominant market participant and price/performance leader in the networking and communications market. D-Link U.S.A., Canada, and Mexico headquarters are located at 17595 Mt. Herrmann Street, Fountain Valley, CA, 92708. Phone (800) 326-1688 or (714) 885-6000; FAX (866) 743-4905; Internet www.dlink.com.
http://biz.yahoo.com/prnews/060116/lam003.html?.v=34
Dubi
midastouch017
18 years ago
Internet Gold Awarded Status of Gold Partner and Certified Service Partner by Check Point Software Technologies Ltd.
Tuesday January 3, 1:00 am ET
PETACH TIKVA, Israel, Jan. 3 /PRNewswire-FirstCall/ -- Internet Gold, (Nasdaq: IGLD - News) today announced that it has been awarded the status of Gold Partner by Check Point Software Technologies Ltd. (Nasdaq: CHKP - News), authorizing it to sell and support Check Point's world-leading perimeter, Web and internal security solutions. Check Point has also recognized Internet Gold's support and customer service capabilities by naming it an expert Check Point Certified Support Partner (CSP) authorized to serve all Check Point customers in the region, both through ongoing service contracts and for one-time projects.
Check Point awarded its Gold Partner and CSP status to Internet Gold in recognition of its growing activities as a consultant, integrator and supporter of its customers' Internet security projects. During the past year, Internet Gold has become a significant user of Check Point security solutions In May 2004, Check Point recognized Internet Gold as the regional partner whose sales had grown the fastest in 2004 at the Check Point Experience conference that was held in Israel.
Commenting on the news, Shmulik Agi, Check Point's Regional Manager for the Middle East, said, "We are delighted to bring Internet Gold, which has demonstrated such strong sales and consulting capabilities, into our prestigious Gold Partner and CSP programs. Through the broad range of projects which it has deployed during the past year, including the impressive Provider-1 web-based management system that it established for a strategic customer, Internet Gold has proved its abilities and its commitment to the integration, support and consulting space."
Eli Holtzman, CEO of Internet Gold, added, "These important achievements reflect the commitment and hard work of our sales, service, technical support and integration teams as well as the dedication of Check Point's training and consulting personnel. We believe that large-scale project implementation and management is an important growth opportunity and we intend to continue pursuing it aggressively."
About Internet Gold
Internet Gold is a group of communications companies that provide Internet access and related value-added services, international telephony, e-advertising, content and e-Commerce services throughout Israel under the brand name "smile". The broad range and popularity of these services have established Internet Gold as one of Israel's leading Internet Communications groups.
The Internet Gold Group includes four subsidiaries. MSN-Israel, its 50.1% owned joint-venture with Microsoft Corp. (49.9% owned), provides Microsoft- branded Search, Instant Messaging, Hotmail and a variety of portal services. Internet Gold International, a fully-owned subsidiary, provides international Internet and communication services. GoldMind, a fully-owned subsidiary, provides value-added services to Internet subscribers. GoldTrade, the Group's fully-owned e-Commerce subsidiary, operates e-Commerce sites.
For additional information about Internet Gold, please visit its Website at http://www.igld.com.
http://biz.yahoo.com/prnews/060103/lntu002.html?.v=21
Dubi
midastouch017
18 years ago
M-Systems' rose and Check Point's thorn
Why M-Systems’ investors have peace of mind, and why the Check Point share is having trouble keep its head above water.
Shlomi Cohen 13 Dec 05 14:59
Profit warning season starts this week, and will peak in the shortened trading week that begins on January 3, 2006, after companies add up the fourth quarter’s numbers. The semiconductor industry is among the few that regularly updates investors during the quarter itself, and several companies did so last week.
Among the Israeli companies in the chip sector, M-Systems Flash Disk Pioneers (Nasdaq: FLSH) sent an indirect message that there was no cause for concern about its fourth quarter results. In its annual letter to investors, dated December 1, in advance of the company’s December 22 shareholders’ meeting, president and CEO Dov Moran mentions achievement of “annual sales of $500 million.” Somebody who writes like that a month before the end of the quarter can’t report results next month that sales didn’t meet that target. On the average, analysts expect annual sales of $490 million.
Yesterday morning, M-Systems also had a soothing message for those who were worried about its relations with Toshiba (TSE: 6502; LSE: TOS; XETRA, AEX, Paris: TSBA). The two companies announced that commercial sales of the next generation of the Mobile Disk on Chip (MDOC) will begin in the third quarter of 2006. The target market for the new chip, which will be manufactured using the most advanced technologies, is smart telephones that require particularly high-volume permanent data storage solutions.
In addition, in an interview last Thursday with Bloomberg, Moran also had reassuring things to say about the entry of Intel (Nasdaq: INTC) and Micron Technology (NYSE: MU) into the NAND flash chip market: “We need more suppliers, and we regard them as potential suppliers. That’s very, very good for M-Systems.” Moran added that he was convinced that Intel would sign an agreement with M-Systems similar to M-Systems’ agreements with Toshiba and others, under which Intel would also sell M-Systems’ products. “Intel needs to abandon its habit of selling only flash chips, without related products, which is where we have a strong position in the market,” Moran explained.
Another interesting point raised in the invitation to M-Systems’ shareholders meeting is that Moran’s good friend, DSP Group (Nasdaq: DSPG) executive chairman Eli Ayalon, who was by his side in the media in the bitter disputes over the Chief Scientist’s budget, and against a quick sale of companies, did not offer himself for another term on M-Systems’ board of directors. He joined the board only two years ago, and received the handsome reward of 8,000 options. Yuval Neeman, who worked for Microsoft (Nasdaq: MSFT) until recently as corporate VP storage and platform solutions in the US, will replace Ayalon.
The upcoming shareholders meeting will grant Moran 100,000 options, a very small number, compared with other companies. In a "Globes" interview several months ago, Moran also made it clear that he would use the proceeds from the sale of these options for charities managed by his wife.
Shwed’s options
Moran’s options remind me of the two million options granted to Check Point (Nasdaq: CHKP) co-founder and CEO Gil Shwed, and the million options granted to co-founder and senior VP Marius Nacht last September. This quantity, which the two have already received before, seems to be a scandal for two founders, each of whom owns about an eighth of the company. Since when do company shareholders need an incentive to achieve success, as if they were hired employees?
According to Check Point’s most recent report, both Shwed and Nacht sold 500,000 shares on November 30, 2005 in a blind sale plan. The sale of these million shares definitely pushed down the Check Point share price, which has barely managed to keep its head above water in recent months.
It is well known that Check Point itself buys its shares in the market under a $200 million rollover program that is renewed every year. Since last April, Shwed and Nacht have sold shares for over $80 million. It can be concluded from this that most of Check Point’s buyback program is an indirect purchase of the company’s shares from major shareholders Shwed and Nacht. To put it more crudely, I’d say that Check Point’s gigantic stack of cash is finding its way into these two partners’ pockets, while we, the shareholders, have gotten only one thing recently: a falling share.
Shwed’s presentation at the Lehman Brothers conference on Thursday in the US, key points from which were reported on the "Globes" Hebrew-language website, have prepared me for a possible profit warning for the fourth quarter. The company published a profit warning for the third quarter. Concern about another profit warning, and the fact that there is no chance that investors will see a penny of Check Point’s enormous cash reserves in the future, such as through a just dividend distribution to all shareholders, led me to sell the share yesterday. It has given me a 14% return in two years.
Published by Globes [online] - www.globes.co.il - on December 13, 2005
The above recommendations were made by a person/s working in the investment industry who may hold positions in securities mentioned in the column. This column should not be taken as advice to buy, sell or continue to hold any securities, and anyone acting on the advice of this column does so at his or her own risk.
http://www.globes.co.il/serveen//globes/docView.asp?did=1000039184&fid=1176
Dubi
midastouch017
18 years ago
Websense Version 6.1 Software Achieves OPSEC Certification From Check Point Software
Monday December 5, 8:00 am ET
Latest Version of Websense Web Security and Web Filtering Software Integrates With Industry Leading Security Framework
SAN DIEGO, Dec. 5 /PRNewswire-FirstCall/ -- Websense, Inc. (Nasdaq: WBSN - News), the world's leading provider of employee internet management solutions, announced today that the recently released Websense® version 6.1 web security and web filtering software has achieved OPSEC(TM) (Open Platform for Security) certification from Check Point® Software Technologies Ltd. (Nasdaq: CHKP - News), the worldwide leader in securing the internet.
OPSEC certification ensures that Websense v6.1 software seamlessly integrates with Check Point's market-leading VPN-1® Pro Next Generation solution, providing Check Point customers with superior web security to protect organizations and their employees from advanced internet threats. Websense software allows organizations to set flexible filtering options for employee access to websites and the launch of applications. Websense delivers these benefits in an easy to manage, integrated policy enforcement solution at the internet gateway, on the network, at the desktop, and for the remote web-enabled employee. The Websense Web Security Suites(TM) also offer an extra layer of protection from emerging web-based threats that include spyware, keyloggers, malicious mobile code (MMC), phishing and other frauds.
"The web continues to evolve as a delivery mechanism for spyware, malicious code and as a way for hackers to gain access to critical information within an organization," said Amir Ben-Efraim, director of Business Development for Check Point Software. "The OPSEC Certified integration between Websense v6.1 and Check Point's market-leading VPN-1 Pro provides an innovative and proactive security solution that transparently protects organizations and employees from the dangers that exist on today's Internet."
In conjunction with previous versions of Websense software achieving OPSEC certification, the certification of Websense v6.1 illustrates the companies' continued commitment to provide customers with the most advanced web security and web filtering technology available. Websense v6.1 was awarded Check Point certification after extensive testing of the software for interoperability, reliability, scalability and performance. As a result of this integration, Check Point firewalls combined with Websense software transparently protect customer networks from internal and external threats, including those associated with spyware, phishing attacks and the use of instant messaging and peer-to-peer file sharing.
"Websense products protect organizations from emerging internet threats by providing a proactive critical security component that complements traditional security solutions," said Steve Kelley, director of Strategic Alliances for Websense, Inc. "Websense is committed to build upon and create new business partnerships. With the OPSEC certification of Websense Enterprise v6.1, customers are assured of a robust best-of-breed web security solution from Websense and Check Point."
Check Point is a member of the Websense Web Security Ecosystem(TM) -- a comprehensive ecosystem of world class security and networking technology providers to enable easy deployment and integration of Websense solutions in enterprise environments. The Websense Web Security Ecosystem incorporates vendors from leading security and networking markets, including: network access control, internet gateways, certified appliance platforms, security event management, and identity management. The Websense Web Security Ecosystem provides interoperability of joint solutions to ensure seamless integration in enterprise environments.
Websense software is available for organizations who wish to protect themselves from internet and application security threats. For a free 30-day evaluation of Websense software or for more information on protecting your organization from a wide range of threats including spyware, peer-to-peer, virus outbreaks and internal hacking exploits, please visit www.websense.com/checkpoint or www.websense.com. Websense Security Labs(TM) offers free email security updates as new internet threats are discovered and is available at www.websensesecuritylabs.com.
About Check Point's OPSEC(TM)
OPSEC (Open Platform for Security) is the industry's open, multi-vendor security framework. With over 350 partners, OPSEC guarantees customers the broadest choice of best-of-breed integrated applications and deployment platforms that support Check Point's Secure Virtual Network Architecture. Products that carry the OPSEC Certified seal have been tested to guarantee integration and interoperability. For complete OPSEC Alliance program information, including partner and product listings, the freely available OPSEC SDK (software development kit) and evaluation versions of OPSEC Certified products, visit www.opsec.com.
About Websense, Inc.
Websense, Inc. (Nasdaq: WBSN - News), the world's leading provider of employee internet management solutions, enables organizations to optimize employee use of computing resources and mitigate new threats related to internet use including instant messaging, peer-to-peer, and spyware. By providing usage policy enforcement at the internet gateway, on the network and at the desktop, Websense products enhance productivity and security, optimize the use of IT resources and mitigate legal liability for our customers. For more information, visit www.websense.com.
http://biz.yahoo.com/prnews/051205/lam013.html?.v=32
Dubi
midastouch017
18 years ago
Check Point and SofaWare Unveil Upgraded Security Management Platform for Service Providers
Monday November 28, 8:00 am ET
Security Management Portal (SMP) 6.0 Enables Managed Security Service Providers to Efficiently Address the Growing Need for Security Outsource Services from Small Businesses
REDWOOD CITY, Calif.--(BUSINESS WIRE)--Nov. 28, 2005--Check Point® Software Technologies Ltd. (Nasdaq:CHKP - News), the worldwide leader in securing the Internet, and SofaWare® Technologies Ltd., a Check Point company, today announced the release of version 6.0 of the Security Management Portal (SMP), a comprehensive network security management system designed specifically for service providers.
"We are seeing a growing demand from small businesses seeking outside expertise to help them with their network security issues," said Zohar Kaufman, vice president of research and development at SofaWare Technologies Ltd. "The SMP is a unique solution in that it is the only management product to also include a fully integrated subscriber management system."
SMP 6.0 empowers Managed Security Service Providers (MSSPs) to develop packages for small businesses wishing to outsource their network security management needs. It provides a scalable method of managing, configuring and controlling anywhere from ten to tens of thousands of Safe@Office gateways, and is capable of delivering add-on subscription security services including software and antivirus updates, dynamic VPN, dynamic DNS, security reporting, Web filtering, antispam and vulnerability scanning.
"Combined with the new Safe@Office 500 series appliances also announced today, SMP 6.0 enables us to deliver industry leading, comprehensive and cost effective Internet security solutions to the Canadian Small and Medium Business market place," said Peter Cresswell, national practice manager, security at Bell Business Solutions. "The intuitive web-based interfaces allow us to significantly increase our efficiency and reduce training costs."
Some of the new benefits of the new SMP 6.0 include:
Vulnerability Scanning Service (VSS) - An integrated vulnerability scanner providing service providers with the ability to regularly scan subscriber networks for security vulnerabilities and firewall configuration errors. The vulnerability scanner is integrated with the SMP reporting module and allows automatic dispatching of graphic reports and alerts.
Gateway Antivirus and Intrusion Prevention Management Service - Control over signature updates and scanning policy. Real-time alerts of viruses, worms, phishing and denial of services attacks. Based on the new Embedded NGX 6.0 gateway antivirus and Application Intelligence technologies.
Secured Hotspots Management Service - Scalable, central management of large hotspot deployments, such as hotels or point of sales. Based on the new Embedded NGX 6.0 Secured Hotspots technology.
SOAP/XML based API - Standard interfaces that allows seamless integration with billing systems, customer care applications, or self provisioning websites.
Enhanced Graphical Monitoring and Reporting - Allows a service provider to be in full control of the status of all security gateways and servers.
Pricing and Availability
SMP 6.0 is scheduled to be available in December. Pricing ranges from $10 to $200 per gateway depending on the deployment size. For more information on SMP 6.0 and the Safe@Office appliances visit: http://www.checkpoint.com/products/smp/ and http://www.checkpoint.com/smallbusiness.
About Check Point Software Technologies Ltd.
Check Point Software Technologies Ltd. (www.checkpoint.com) is the worldwide leader in securing the Internet. It is the market leader in the worldwide enterprise firewall, personal firewall and VPN markets. Through its NGX platform, the company delivers a unified security architecture for a broad range of perimeter, internal and Web security solutions that protect business communications and resources for corporate networks and applications, remote employees, branch offices and partner extranets. The company's ZoneAlarm product line is one of the most trusted brands in Internet security, creating award-winning endpoint security solutions that protect millions of PCs from hackers, spyware and data theft. Extending the power of the Check Point solution is its Open Platform for Security (OPSEC), the industry's framework and alliance for integration and interoperability with "best-of-breed" solutions from over 350 leading companies. Check Point solutions are sold, integrated and serviced by a network of more than 2,200 Check Point partners in 88 countries.
About SofaWare Technologies Ltd.
SofaWare Technologies Ltd. (www.sofaware.com), a Check Point company, makes secure Internet access simple and affordable for small businesses, consumers, and service providers seeking to deliver security services. Leveraging Check Point's market-leading VPN-1®/FireWall-1® technology, SofaWare embedded products allow commercial and residential broadband users to experience the same advanced security protection enjoyed by 97% of the Fortune 500. Through SofaWare's Security Management Portal (SMP(TM)), service providers and value-added resellers can deliver to their customers comprehensive security services, such as hands-free security updates, antivirus, antispam, content filtering, dynamic DNS, and remote monitoring for any device integrating SofaWare technology. SofaWare's solutions cover a range of devices from leading vendors, including Check Point VPN-1® Edge(TM), Check Point Safe@Office®, Nokia IP40 and NEC SecureBlade.
(c)2003-2005 Check Point Software Technologies Ltd. All rights reserved. Check Point, Application Intelligence, Check Point Express, the Check Point logo, AlertAdvisor, ClusterXL, Cooperative Enforcement, ConnectControl, Connectra, CoSa, Cooperative Security Alliance, DefenseNet, Eventia, Eventia Analyzer, Eventia Reporter, FireWall-1, FireWall-1 GX, FireWall-1 SecureServer, FloodGate-1, Hacker ID, IMsecure, INSPECT, INSPECT XL, Integrity, InterSpect, IQ Engine, Open Security Extension, OPSEC, OSFirewall, Policy Lifecycle Management, Provider-1, Safe@Home, Safe@Office, SecureClient, SecureKnowledge, SecurePlatform, SecuRemote, SecureXL Turbocard, SecureServer, SecureUpdate, SecureXL, SiteManager-1, SmartCenter, SmartCenter Pro, Smarter Security, SmartDashboard, SmartDefense, SmartDefense Advisor, SmartLSM, SmartMap, SmartUpdate, SmartView, SmartView Monitor, SmartView Status, SmartViewTracker, SofaWare, SSL Network Extender, Stateful Clustering, Triple Defense Firewall, TrueVector, Turbocard, UAM, User-to-Address Mapping, UserAuthority, VPN-1, VPN-1 Accelerator Card, VPN-1 Edge, VPN-1 Pro, VPN-1 SecureClient, VPN-1 SecuRemote, VPN-1 SecureServer, VPN-1 VSX, VPN-1 XL, Web Intelligence, ZoneAlarm, ZoneAlarm Pro, Zone Labs, and the Zone Labs logo, are trademarks or registered trademarks of Check Point Software Technologies Ltd. or its affiliates. All other product names mentioned herein are trademarks or registered trademarks of their respective owners. The products described in this document are protected by U.S. Patent No. 5,606,668, 5,835,726, 6,496,935, 6,873,988 and 6,850,943 and may be protected by other U.S. Patents, foreign patents, or pending applications.
http://biz.yahoo.com/bw/051128/20051128005337.html?.v=1
Check Point Simplifies Internet Security for Small Businesses With New Safe@Office 500 Unified Threat Management (UTM) Appliances
Monday November 28, 8:00 am ET
REDWOOD CITY, Calif.--(BUSINESS WIRE)--Nov. 28, 2005--Check Point® Software Technologies Ltd. (Nasdaq:CHKP - News):
Check Point Next Generation (NGX) Technology Combined With SofaWare's Easy-to-Manage Architecture Offers All-in-One, Layered Security at a Highly Affordable Price; New Features Include Integrated Antivirus and Intrusion Prevention
Check Point® Software Technologies Ltd. (Nasdaq:CHKP - News) today announced the new Check Point Safe@Office® 500 and Safe@Office® 500W Unified Threat Management (UTM) security appliances, offering small businesses unsurpassed network protection against dynamic zero-hour Internet attacks in a single, easy-to-deploy and affordable solution.
"Now, Check Point's industry-leading enterprise network security is truly within reach for small businesses," said Laura Yecies, vice president at Check Point.
The Check Point Safe@Office 500 and 500W, powered by advanced technology developed by Check Point subsidiary SofaWare® Technologies Ltd., are all-in-one network security appliances featuring a firewall, VPN, antivirus, intrusion prevention, traffic shaping and Web filtering. The Safe@Office 500W integrates a 108Mbps extended range wireless access point with powerful wireless security and guest hotspot capabilities.
The Safe@Office 500 series supports a rich set of additional online services such as antivirus, security and firmware updates, providing zero-hour protection against rapidly propagating threats without any user intervention. It also has built-in interfaces that allow outsourcing security management to a trusted 3rd party.
"The new Safe@Office 500 series solves the security dilemma for small businesses," said Liran Eshel, chief executive officer of SofaWare Technologies. "Today's sophisticated hackers don't discriminate based upon the size of the target, yet true enterprise-level security has been elusive for these customers. Our new product line was designed to meet the specific needs and limited budgets of small offices without compromising the level of protection and without requiring complex set up and management."
Check Point Embedded NGX 6.0
Safe@Office 500 is based on the new Check Point Embedded NGX 6.0, the latest security software platform based on Check Point's market-leading Firewall-1® and VPN-1®, adapted by SofaWare Technologies to fit embedded devices. UTM security appliances are layered network security hardware solutions integrating multiple features -- including a network firewall, network intrusion prevention, and gateway anti-virus within one box.
Check Point Embedded NGX 6.0 offers the following new benefits:
Stateful Virus Protection -- High-throughput network based antivirus scanner for email, Web, file downloads or any other user defined port. Frequently updated to protect the office network against emerging computer viruses and phishing outbreaks.
Intrusion Prevention -- Proactive network and application layer protection based on Check Point's award winning Application Intelligence technology protects the network against worms and denial of service attacks and allows fine control over instant messaging and peer-to-peer applications.
Secured Hotspots -- Facilitates the creation of managed guest access networks with configurable Web-based authentication, temporary user accounts and RADIUS integration.
Advanced Network Monitoring and Troubleshooting Tools -- Built-in traffic monitoring and packet capture tools control and monitor incoming and outgoing traffic to ensure efficient utilization of the office broadband connection.
Additional security and networking features include:
Cost-effective Secure Remote Access -- Extensive VPN capabilities allowing small businesses to increase productivity by providing remote access to teleworkers and employees on the road as well as securely interconnect remote branches over low-cost broadband connections.
Reliability and Efficiency -- Dual WAN, dialup backup and automatic failover between appliances assure that networks are up at all times. TrafficShaper (QoS) assists in optimizing traffic flow and allows allocated guaranteed bandwidth for critical applications.
"Many security appliances are difficult to set up and maintain, draining hours, if not days, from a busy, small business environment," said Don Fuller, program manager at 123SECURE.NET, a small business managed-service partner. "Our customers need an all-in-one solution with as little overhead in terms of time and money as possible. Safe@Office simplifies Internet security for our customers, making the entire process truly plug-and-play while offering the best security available today."
Pricing and Availability
The Safe@Office 500 series appliances are scheduled to be available in December. Pricing starts at $299 US for the appliance, and as low as $10 US annually per user for the firewall and antivirus subscriptions. The Check Point SecuRemote VPN Client is bundled with the product. For more information on Safe@Office appliances, visit: http://www.checkpoint.com/smallbusiness.
http://biz.yahoo.com/bw/051128/20051128005349.html?.v=1
Check Point launches wireless router with built-in anti-virus
The device, developed by SofaWare using Check Point's NGX 6.0 security software platform, is aimed at small businesses.
Globes correspondent 28 Nov 05 16:24
Check Point (Nasdaq: CHKP) has announced a what is in effect a wireless router with built-in security capabilities, designed for small business.
The Check Point Safe@Office 500 and 500W, powered by technology developed by Check Point subsidiary SofaWare, are all-in-one network security appliances featuring a firewall, VPN, antivirus, intrusion prevention, traffic shaping and Web filtering. The Safe@Office 500W integrates a 108Mbps extended range wireless access point with wireless security and guest hotspot capabilities.
"The new Safe@Office 500 series solves the security dilemma for small businesses," said SofaWare Technologies CEO Liran Eshel. "Today's sophisticated hackers don't discriminate based upon the size of the target, yet true enterprise-level security has been elusive for these customers. Our new product line was designed to meet the specific needs and limited budgets of small offices without compromising the level of protection and without requiring complex set up and management."
Safe@Office 500 is based on the new Check Point Embedded NGX 6.0, the latest security software platform based on Check Point's Firewall-1 and VPN-1, adapted by SofaWare Technologies to fit embedded devices.
The Safe@Office 500 series appliances are scheduled to be available in December. Pricing starts at $299 US for the appliance, and at $10 annually per user for the firewall and antivirus subscriptions. The Check Point SecuRemote VPN Client is bundled with the product.
Published by Globes [online], Israel business news - www.globes.co.il - on November 28, 2005
Dubi
midastouch017
18 years ago
"An extraordinary opportunity"
Check Point's Gil Shwed isn't about to sell.
Gitit Pincas 30 Oct 05 13:45
Check Point's share has already taken its punishment for disappointing the market with its third quarter results. It happened when, on October 6, Check Point announced the $225 million acquisition of Sourcefire and at the same time provided updated third quarter guidance for that was at the lower end of its original guidance and below market expectations.
This was the background to the release of Check Point's third quarter financials on Friday. It was also what enabled the network security technology company to provide improved fourth quarter guidance, resulting in a 3.12% rise in the share price by Friday's close, to $22.17, giving a market cap of $5.44 billion.
"Our financial results are excellent," Check Point CEO Gil Shwed said on Friday. "We have presented numbers in the upper end of the range for profitability and cash flow. It's true that revenue was not at the upper end of the forecasts, but we think that to present record levels of profitability in the summer quarter is excellent."
Check Point reported quarterly revenue of $141.1 million, representing an increase of 9% compared with $129.3 million in the third quarter of 2004. Net profit was $78.7 million, representing an increase of 18% compared with $66.8 million in the third quarter of 2004. Net profit excluding acquisition related charges was $80.5 million, representing an increase of 16% compared with $69.1 million in the third quarter of 2004.
Earnings per diluted share were $0.31, representing an increase of 22% compared with $0.26 in the third quarter of 2004. Earnings per share excluding net acquisition related charges were $0.32, representing an increase of 20% compared with $0.27 in the third quarter of 2004. During the third quarter of 2005, Check Point purchased 2.6 million shares at a total cost of approximately $57 million.
For the fourth quarter, the company provided updated revenue guidance of $155-164 million. The mid-point of this range, $159.5 million, is above the current analysts' consensus. The company expects earnings per share of $0.34-0.37 excluding acquisition-related costs, or $85-92.5 million in total, an extremely impressive number, and one that represents a new record. The acquisition of Sourcefire may close in the fourth quarter. If it does, Sourcefire's results will be consolidated, but the guidance does not take this possibility into account.
The revenue forecast for 2005 as a whole is $578.3-587.3 million, which compares with an analysts' consensus of $582.4 million. As far as 2006 is concerned, Check Point is still not providing guidance yet. For the time being, Shwed is prepared to say ,"There are many challenges before us, including our overall security strategy. On the other hand, we have extraordinary opportunities. We are now beginning to plan next year's activity."
Check Point's deferred revenue fell 6% in comparison with the previous quarter to $144.3 million. In the company's conference cal, CFO Eyal Desheh described this fall as seasonal and normal, and said it did not indicate a problem.
This did not of course make the fall any less disappointing, especially when another item is taken into account: weak software license sales. These totalled $65.6 million in the third quarter, 3% less than in the corresponding quarter of 2004, and 8% less than in the previous quarter. Subscription fees totalled $60.4 million, 24% higher than in the corresponding quarter of 2004, and above most investment houses' estimates.
In the conference call, this was one of the things that the analysts particularly asked about. It seems that they failed to understand the division of revenue between the various items and how it could be that despite the rise in subscription fees which ought to find expression in the balance sheet, deferred revenue fell. "All in all, Check Point's financials are positive and good, but the company is not sufficiently transparent to my mind as far as the mix of licenses and subscription fees is concerned," says Oscar Gruss analyst Ehud Eisenstein. "There are many question marks here, and this confuses the investment community."
Shwed tries to explain: "We have customers who buy new products, and others who upgrade existing products. Most of our customers also buy a subscription in order to receive updates and upgrades continually. So there is some movement of customers who in the past did not have subscriptions and only received version updates to customers who now have subscriptions. This element shifts a few million dollars to subscription fees.
What about the fact that this is liable to cause confusion? "We were certainly asked a great deal about this in the conference call. I think that the analysts' job is to examine various indicators, and when those indicators are growing, they should be happy." Shwed refers to that fact that, in total, revenue from products and licenses is growing and amounted to $126 million altogether. "We'll always be asked why one area is growing faster than another, and if one grows more, then what's the problem with the other one," says Shwed.
Competitors
Check Point's managers never hesitate to declare that the company's technology is the best on the market, that only it has an overall security strategy and a complete architecture, and that the others don't provide this. This time too, when they were asked in the conference call about competitors, co-vice chairman Jerry Ungerman said he did not see Microsoft as a competitor. "They've had security products for eight years now, and we don't see them as competitors with any product," he said.
Juniper (Nasdaq: JNPR), which competes with Check Point via NetScreen, recently released superb financials, and CEO Scott Kriens stated in them that the security field was particularly strong and grew by 8% from the previous quarter, and by 37% from the corresponding quarter of 2004.
Shwed suggests that NetScreen's numbers shouldn't be taken at face value. "Even the perhaps trivial fact that Juniper doesn't disclose NetScreen's revenue shows that the numbers are disappointing," he says. "We see what's happening on the market, especially in large enterprises, at the high end, and they are there less and less.
Check Point had $1.67 billion in liquid assets at the end of the third quarter, after generating $83.5 million from routine operations during the quarter. Since the beginning of the year, the company has had cash flow from operations of $265.4 million.
On the Sourcefire acquisition, Shwed says, "We don't want to be a solutions supermarket, but to give customers integrated solutions. Every acquisition is challenging, and Sourcefire's people suit us very well, and its technology even more so."
Sourcefire is Check Point's third acquisition. The previous one, that of Zone Labs, is considered a success, and has left an appetite for more.
Are acquisitions a strategy for you?
Shwed: "We define our strategy as to give full solutions to customers and an overall security architecture. We will get there by developing new products and enriching existing ones. Part of the execution of this strategy is buying companies. It's hard for me to say whether it's a large part or a small part. An acquisition is a complicated process, and we don't see further acquisitions in the immediate term. We are currently making one acquisition that will occupy us for no small amount of time."
Investors and analysts would like to see Check Point buy more companies and technologies, just as they would like to see it carrying an even larger program of repurchases of its own shares, or distributing a dividend. The market's aspirations are interesting, but what about a bigger move, such as selling Check Point itself?
In the conference call, Shwed was asked how he personally saw a sale of the company. The seven seconds of silence he took to consider what he wanted to say in response to this question seemed very long indeed. Then he answered, "We're a public company, and we have to consider what's right for us and for the company. As far as we are concerned, this is certainly not our direction. We can remain the only independent company that provides network security solutions only, some thing no other company does. Personally, I have always wanted Check Point to be independent and to lead the market.
There is never any lack of rumors on the market. Sometimes they say Cisco wants to buy Check Point, and sometimes they say its Microsoft. Shwed, by the way, didn't meet Microsoft chairman Bill Gates last week, even though he should have since, he says, they were at the airport at the same time. But when you think about it, at the personal level, as a manager and as someone who owns 12.5% of Check Point, and if you take the rumor about Microsoft a step further forward, it's not at all a bad idea for Shwed.
He could become a vice president of Microsoft, the gorilla that is about to invest hundreds of millions of dollars, at least, in security. This wouldn't be just a merger, such as with Symantec or another competitor. It would be a strategic sale, and Shwed could be responsible for a huge budget and for outlining strategy. Something like what Shai Agassi has done at SAP, just that SAP is a $50 billion company, and Microsoft is a $270 billion company.
Shwed listens to this fantasy scenario of mine politely, and then says, "At a personal level, I really am not looking for that kind of thing, and I'm not looking to sell the company. At the strategic level, I always try to look at thing wearing two hats: mine, as a shareholder; and thinking about what's good for the other shareholders, that is, as a manager. There isn't always a contradiction between the two things, but, wearing my own hat, it would not be right to sell the company.
"We have an extraordinary strategic opportunity today to become a company that provides solutions for the network security layer. We are independent. In contrast to Juniper, that has an interest in selling routers as well, and in contrast to Microsoft, that has an interest in selling more operating systems, we sell only security solutions of this kind. There's no-one else who currently does that."
Published by Globes [online], Israel business news - www.globes.co.il - on Sunday, October 30, 2005
http://www.globes.co.il/serveen/globes/DocView.asp?did=1000023399&fid=980
Dubi
midastouch017
18 years ago
Check Point Software Reports Financial Results for the Third Quarter of 2005
Friday October 28, 4:00 am ET
Third Quarter EPS Increased 22% Year Over Year
REDWOOD CITY, Calif.--(BUSINESS WIRE)--Oct. 28, 2005--Check Point® Software Technologies Ltd. (NASDAQ:CHKP - News), the worldwide leader in securing the Internet, today announced its financial results for the third quarter ended September 30, 2005.
Financial Highlights for the Third Quarter of 2005:
Revenues: $141.1 million, an increase of 9% compared to $129.3 million in the third quarter of 2004.
Net Income: $78.7 million, an increase of 18% compared to $66.8 million in the third quarter of 2004. Net income excluding acquisition related charges(1) was $80.5 million, an increase of 16% compared to $69.1 million in the third quarter of 2004.
Earnings per Diluted Share: $0.31, an increase of 22% compared to $0.26 in the third quarter of 2004. EPS excluding net acquisition related charges was $0.32, an increase of 20% compared to $0.27 in the third quarter of 2004.
Deferred Revenues: $144.3 million, an increase of $19.6 million or 16% over deferred revenues as of September 30, 2004.
Share Repurchase Program: During the third quarter of 2005, Check Point purchased 2.6 million shares at a total cost of approximately $57 million.
"Our third quarter business continued to fuel strong earnings growth," said Gil Shwed, chairman and chief executive officer of Check Point Software. "We believe our focus on delivering an independent layer of comprehensive security solutions through a unified security architecture is driving our leading position as a provider of network security. During the quarter, we continued to upgrade products as part of the NGX platform launch. We strengthened our consumer presence by unveiling the highly anticipated ZoneAlarm® Internet Security Suite 6.0. Also, we recently announced plans to acquire Sourcefire to further extend the unified security architecture with next generation intrusion prevention solutions."
Recent Business Highlights Include:
Business Expansion with Sourcefire Acquisition -- Announced an agreement to acquire Sourcefire, Inc., the creator of Snort(TM), and a leading provider of intrusion prevention and real-time network access solutions for a total consideration of approximately $225 million. Check Point believes the pending acquisition will further enable the company to provide the most comprehensive internal security solutions portfolio and accomplish another milestone in achieving its vision of a unified security architecture.
Significant Customer Traction for NGX(TM) Platform Upgrades -- As the industry's only unified security architecture for perimeter, internal, Web and endpoint security, NGX continues to strengthen as we launch new NGX offerings, including VPN-1® VSX. NGX helps enterprises of all sizes reduce the cost and complexity of security management while ensuring their security systems can be easily extend to adapt to new and evolving threats. Since availability, the NGX platform has generated approximately 20,000 new licenses and upgrades.
Industry Honors Achieved in the Third Quarter:
Check Point's VPN-1® Pro(TM) wins award -- Windows IT Pro 2005 Readers' Choice Best Firewall Solution -- for the best server/standalone firewall.
Check Point's ZoneAlarm® Internet Security Suite 6.0 wins numerous awards
CNet Editors' Choice Award for Desktop Security -- for best desktop security value for its firewall, anti-spyware, antivirus, and antispam features;
PC Magazine's Editors' Choice Award for Best Security Suite -- for blocking spyware installation and delivering instant real-time protection against Internet threats;
LAPTOP Magazine Editor's Choice Award Best Security Suite -- for the industry's best security suite.
Check Point's Valued Partner Program wins award -- 2005 VARBusiness Magazine "Annual Report Card" Winner -- for achieving exceptional partner satisfaction.
Mr. Shwed continued, "Check Point's vision for the future of network security is a unified security architecture, functioning in all layers of the network, designed to address the unpredictability of potential threats with unified management and enforcement. We are offering customers a single architecture that serves as the framework for their security solutions."
Conference Call and Webcast Information
Check Point will host a conference call with the investment community on October 28, 2005 at 8:30 a.m. ET/5:30 a.m. PT. To listen to the live webcast, please visit Check Point's website at http://www.checkpoint.com/ir. A replay of the conference call will be available through November 11, 2005 at the Company's website http://www.checkpoint.com/ir or by telephone at 973-341-3080, pass code 6558970.
http://biz.yahoo.com/bw/051028/285168.html?.v=1
Check Point 3rd-qtr profit up 18 pct
Fri Oct 28, 2005 04:13 AM ET
NEW YORK, Oct 28 (Reuters) - Internet security software maker Check Point Software Technologies Inc. (CHKP.O: Quote, Profile, Research) posted an 18 percent increase in quarterly profit on Friday, boosted by higher sales of network security products.
Third-quarter net income reached $78.7 million, or 31 cents a share, versus $66.8 million, or 26 cents, a year earlier.
Excluding charges, EPS amounted to 32 cents. Analysts on average expected Check Point to report 31 cents a share, according to Reuters Estimates.
Revenue increased 9 percent to $141.1 million. The company had said earlier this month it expected revenue in the range of $140 million to $141.5 million and EPS excluding charges of 31 to 32 cents.
http://yahoo.reuters.com/financeQuoteCompanyNewsArticle.jhtml?duid=mtfh57304_2005-10-28_08-13-27_wen...
Dubi
midastouch017
19 years ago
Check Point going cheap
The knee-jerk reaction to Check Point's guidance adjustment is an opportunity for some. ECI meanwhile is getting new leadership - and new ownership?
Shlomo Greenberg
For once, surprisingly enough, it wasn't the analysts but the investment managers and the traders who shook Check Point (Nasdaq: CHKP) up and put it through the wringer, and in the end presented us with an exceptional buying opportunity for one of the most interesting technology stocks on Wall Street.
The truth is that all the updated research reports from the analysts released in the past week, since the company revised its guidance for the third quarter and for the year, are positive, and recommend exploiting the share's weakness to buy it. Nevertheless, the blame for the sharp falls certainly rests with the analysts , who accustomed the portfolio managers, and certainly the day traders, to respond savagely to the slightest deviation from their consensus estimates
The result of the whole fiasco is that once more, a buy opportunity has been given to some investors who don't have Check Point in their portfolios. It's a phenomenon, and this is the reason why I have been arguing for three years now that you shouldn't chase after any stock, not even Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA ; TASE: TEVA) or M-Systems Flash Disk Pioneers (Nasdaq: FLSH).
ECI Telecom (Nasdaq: ECIL) continues to pick up contracts, and I have no doubt that it's on the right road to full recovery. The man who did it, company veteran Doron Inbar, is leaving, to be replaced by ECI's new COO Rafi Maor. Maor, who led Indigo until HP bought it, and who before that had a spell at Israel Aircraft Industries, is replacing one of the most talented and surprising managers in Israel's technology industry. Inbar, a finance person by training, is responsible for pulling ECI out of the mire in which it was about to sink at the end of the last century.
To tell the truth, I was one of those who thought the choice of Inbar as president of ECI was mistaken, but he has proved to be a talented manager, and for that the company owes him a debt of gratitude and recognition.
Why is he leaving now, when the company is in such an improved position and looks as though it is on the brink of a great breakthrough? Let's hope that Maor will know how to carry on what Inbar started. You have to understand that ECI has a bank of know-how and experience in telecommunications infrastructures that few other companies in the world have. ECI also has a powerful marketing network and connections the like of which very few companies possess.
I now expect that that one of the big infrastructure companies, preferably Israeli but a foreign one would also do, will offer to buy ECI. The reason is that the company's current owners, Koor Industries (NYSE: KOR ; TASE: KOR) and the Dovrat group, each for its own reasons, would, in my opinion, prefer to sell, at the right price. In New York, the word is that the right price has already been offered. We'll live and learn.
Published by Globes [online], Israel business news - www.globes.co.il - on October 11, 2005
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