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Check Point Gets Cheeky

Check Point Software Technologies Ltd. (Nasdaq: CHKP) reported its third-quarter results today and raised its fourth-quarter guidance, buoyed by strong performance of the companys firewall/VPN products.

Revenues for the third quarter were $129.3 million, up 22 percent on the same period last year. Earnings per share were 27 cents, up 17 percent on third quarter of 2003, and above the 25 cents per share predicted by analysts. However, the third-quarter earnings figure excludes charges related to the acquisition of security vendor Zone Labs Inc. last year (see Check Point Buys Zone Labs).

The market responded positively to the results. In afternoon trading today, Check Point shares rose $2.96 (16.52%) to $20.88.

Speaking on a conference call this morning, Check Point president Gil Shwed explained that the traditional summer-spending slowdown had not been as bad as anticipated. “We were expecting a little bit more seasonality than what happened,” he said.

As a result, Check Point’s firewall/VPN products generated up to $5 million more than anticipated, he added.

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