VPN/Firewall Technology Helps Boost Check Point Earnings

The security software vendor, based here, reported net income of $64.5 million on $110.3 million in revenue for the quarter ended Dec. 31. That compares with net income of $77 million on $122.5 million in revenue for the same quarter a year ago.

Fourth-quarter earnings of 26 cents per share on a diluted basis surpassed First Call/Thomson Financial consensus estimates of 24 cents.

The quarter demonstrated continued strong demand for the company's VPN/firewall technology, Check Point Software Technologies President Jerry Ungerman said in a conference call with analysts.

"Overall, I am very pleased with what we accomplished this quarter and our prospects for the future," he said.

Despite the continued slowdown in IT spending, "Check Point continued to generate strong earnings and build for the future," Ungerman said.

Total income for 2002 was $255 million on $427 million in sales. That compares with income of $321.9 million on $527.6 million in sales the previous year.

Shares of Check Point closed Wednesday at $14.26, up 28 cents.