* Q3 EPS $0.85 vs $0.84 forecast
* Sees Q4 non-GAAP EPS $0.90-$0.98, revenue $365-$395 mln
* Nasdaq shares up 2.8 pct at new year high
By Tova Cohen
TEL AVIV, Oct 21 Computer security provider
Check Point Software Technologies topped third-quarter
profit and revenue forecasts on Monday and said it sees a strong
fourth quarter after a weak start to the year.
One of the global leaders in the corporate fight against
cybercrime and computer viruses said sales were boosted by its
threat prevention software blades - modular software building
blocks sold as annual subscriptions.
New product launches and an improving economy in Europe also
helped lift sales of computer protection technology.
"We have a lot of competition and we need to grow faster,"
Chief Executive Gil Shwed told a news conference. "This could be
through better products and also partly by acquisitions."
Check Point, which has cash of nearly $3.7 billion, is
seeking acquisitions that will bring new solutions to its
clients, he said.
Earlier this month rival Cisco Systems bought
cybersecurity company Sourcefire Inc for $2.7 billion,
a deal that analysts say should spark more acquisitions in the
industry as large vendors seek to profit from growing demand for
Shwed estimated fourth-quarter revenue of $365-$395 million
and earnings per share excluding one-off items of 90-98 cents.
Analysts are estimating EPS of 96 cents and revenue of $385.2
billion, according to Thomson Reuters I/B/E/S.
This forecast is consistent with Check Point's full-year
outlook provided last quarter, Shwed said.
The Israeli company's quarterly forecast would bring
adjusted EPS for the year to $3.36-$3.44, slightly narrowing the
range it forecast last quarter of $3.33-$3.46.
The company's shares were up 2.8 percent at $61.22 in early
Nasdaq trade, hitting a new year high.
Check Point earned 85 cents a share excluding one-time items
in the third quarter, up from 79 cents a year earlier. Revenue
grew 4 percent to $344.1 million.
It was forecast to have earned 84 cents a share on revenue
of $343.6 million, according to Thomson Reuters I/B/E/S.
Revenue was also boosted by sales of new appliances that
combine hardware and software both at the high and low end of
the company's product line.
"The recently launched data centre and small appliance
families were received enthusiastically by our customers," Shwed
A strengthening shekel hurt its bottom line by $3 million,
or 1.5 cents per share in the quarter, as local expenses
increased in dollar terms.