On Jan. 24, Check Point Software Technologies (NASDAQ:CHKP) released fourth-quarter earnings for the period ended Dec. 31.
- Net revenues grew 3%, driven by increases in revenues from software subscriptions and services.
- In 2006, Check Point repurchased 23.2 million shares at a total cost of $435.5 million.
- In the fourth quarter, the company announced a cash tender offer to acquire Protect Data AB, a worldwide provider of solutions for automatic data encryption.
- In this quarter, the company acquired NFR Security, a leader in real-time threat prevention.
- FCF declined by 6.7% as a result decline in net income and increased capital expenditure.
- Check Point is a four-star stock in Motley Fool CAPS.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q4 2006 |
Q4 2005 |
Change | |
|---|---|---|---|
|
Sales |
$160.1 |
$156.1 |
2.6% |
|
Net Profit |
$79.5 |
$89.2 |
(10.9%) |
|
EPS |
$0.35 |
$0.36 |
(2.8%) |
|
Diluted Shares |
228.9 |
248.6 |
(7.9%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q4 2006 |
Q4 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin |
94.6% |
95.9% |
(1.3) |
|
Operating Margin |
49.7% |
59.8% |
(10.1) |
|
Net Margin |
49.7% |
57.2% |
(7.5) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$1,090.7 |
$1,342.8 |
(18.8%) |
|
Accounts Rec. |
$141.9 |
$127.1 |
11.6% |
|
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$153.9 |
$136.9 |
12.4% |
|
Long-Term Debt |
$0.0 |
$0.0 |
N/A |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q4 2006 |
Q4 2005 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$77.7 |
$81.5 |
(4.6%) |
|
Capital Expenditures |
$3.0 |
$1.4 |
113.7% |
|
Free Cash Flow |
$74.7 |
$80.1 |
(6.7%) |
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Related Companies:
- McAfee (NYSE:MFE)
- Novell (NASDAQ:NOVL)
- Sybase (NYSE:SY)
- Micros Systems (NASDAQ:MCRS)
Related Foolishness:
McAfee is a former Stock Advisor selection.
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