Check Point CEO: 'We Are Looking Very Actively At Acquisition Options'
Check Point Software Technologies could be the next major security vendor making acquisition moves, CEO Gil Shwed said on the company’s second-quarter earnings call Tuesday.
’We are looking very actively at acquisitions, both large and small expansions,’ Shwed said. ’We are definitely active in the M&A space,’ he said.
What will be key for Check Point, Shwed said, is to find technologies that ’fit our architecture.’ He said Check Point wants to remain focused and deliver a ’very clear architecture’ or solutions, rather than ’become a supermarket for all types of security solutions.’ Last year, that approach included the acquisition of Lacoon Mobile Security in April for about $80 million and Hyperwise in February for an undisclosed price.
’We are looking for the right technology that can complement our technology line and provide our customers with more consolidation and a better-architected solution. When we find these, large or small, we will act upon it,’ Shwed said.
There have already been some blockbuster acquisitions in the security market in 2016 so far, most notably Symantec’s acquisition of Blue Coat Systems for $4.65 billion in June. Without naming names, Shwed said Check Point will take a different acquisition approach than other vendors this year, adding that the company doesn’t feel threatened by any moves so far in the market.
’I think the M&A, the large ones we’ve seen in our industry, are less related to us. I’m not sure that I fully understand their logic, but I think they are very complementary and cooperative to what we are doing. They are companies that we are very cooperative with,’ Shwed said.
Check Point reported sales for the second quarter, which ended June 30, of $423 million, up 7 percent year over year. Earnings for the quarter were $166 million, up 1 percent year over year. Earnings per share was 95 cents, up from 85 cents in the same quarter last year.
Check Point in particular highlighted growth around its new product offerings and subscription services for the quarter. The security vendor launched a full line of new appliances this year, including the 1400 and 3200 Series for small and branch offices, the 5000 Series for midsize enterprises, the 15000 Series for enterprises and the 23000 Series for high-end and data center environments. The number of appliances sold increased double digits in both units and dollars, Shwed said, with the ’majority of sales’ coming from the new appliance lines.
Shwed said Check Point also saw ’healthy growth’ for its subscription business, led by its Sandblast advanced threat detection solution, which it launched last September. Software blade subscription revenue for the quarter was $93 million, up 21 percent year over year.
Check Point said it expects revenue for the third quarter to be between $405 millionn and $435 million. That represents a drop from previous revenue estimates of $432.6 million. It expects earnings per share between $1.03 and $1.10.