Through several major acquisitions, Check Point Software
Check Point's fiscal first-quarter revenue, announced April 26, rose 23% to $163.9 million. However, net income fell 24% to $46.9 million, in part because all those acquisitions required the company to absorb $22.4 million worth of in-process R&D costs. Nonetheless, cash flow from operations was a healthy $110 million, bolstering the company's roughly $1.1 billion in cash.
Check Point has now finished digesting its NFR Security purchase, giving the company access to the fast-growing market for real-time network protection. Its rivals in this space include Sourcefire
In addition, Check Point is still integrating the operations of Protect Data, which provides security for mobile devices. Protect Data contributed $17.5 million in first-quarter revenue, up a whopping 90% year over year. As Check Point sells the company's systems within its channels, that segment could add $90 million or more to Check Point's fiscal 2007 revenue.
That extra influx of sales should help Check Point blunt attacks from major competitors like EMC
While Check Point's stock has meandered this year, investors may get better news over the next couple of quarters.
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