Check Point Software Technologies(Nasdaq: CHKP) fell US$6.72 to $65.67 in morning trading Tuesday, even after beatinganalyst estimates for the first quarter ended March 31st.
“We delivered record results in challenging market conditions, demonstratingthe importance of Internet security,” said founder and chief executiveofficer Gil Shwed.
The Redwood City, California-based maker of Internet security software saidthat net income for the quarter rose 140 percent from a year earlier to $83.7million, or 32 cents per diluted share. Analysts had expected earnings of 29 cents per share for the quarter.
Revenue advanced 86 percent, to $145 million.
However, reports said that some were looking for a stronger quarter from CheckPoint,which has seen its shares drop in recent months, along with others in theInternet software sector. Technology shares were lower across the boardTuesday morning as several companies reported weaker-than-expected results.
During the quarter, Check Point said that it released new versions of itsproducts and advanced its broadband efforts through an agreement withEricsson (Nasdaq: ERICY). Partnerships were also announced with companiesincluding Nokia, Broadcom, Intel, Compaq, Intrusion.com and RapidStream.
Shwed said that the company plans to unveil more new products in the quartersahead.
Check Point said its balance sheet is “strong,” with deferred revenue growing$2.2 million in the quarter, to a total of $123.4 million.
CheckPoint offers what it calls the Secure Virtual Network (SVN), which provides secure business-to-business (B2B) communications among networks, systems,applications and users across the Internet, Intranets and extranets.