Earnings Roundup: Check Point passes, Cypress and Parametric miss
Check Point Software, Cypress Semiconductor, and Parametric Technology Corporation all participated in earnings show-and-tell Tuesday.
Check Point Software Technologies Ltd. (Nasdaq: CHKP) said Tuesday earnings for the second quarter were $21.5 million, or 53 cents a share, above First Call's consensus estimate of 50 cents a share.
Shares in the maker of secure enterprise networking software rose almost 3 percent, up 1 9/16 to 57 13/16. Check Point also reported stronger-than-expected results last quarter.
Revenue for the quarter was $50.0 million compared to $34.2 million for the same period in 1998. Net income for the, compared to net income of $16.8 million, or 44 cents a share for the same quarter last year.
"The growth in the Internet and e-commerce continued to drive demand for our products. The Company deepened its market penetration, and now boasts over 80,000 customer installations. Since the beginning of the year, Check Point has doubled its VPN installed base to over 21,000,'' said Gil Shwed, president and chief executive officer in a company release.
Check Point, with U.S. headquarters in Redwood City, California and international headquarters in Ramat-Gan, Israel, continued to grow its market strength around the world. Revenues from the U.S. accounted for 45 percent of revenues, and Europe 35 percent.
Shares in the San Jose, California-based company fell 1 9/16 to 18 9/16, below their 52-week high of 21 3/8.
Revenue was $161.5 million, edging above the year-ago quarter's revenue of $133.4 million, and up just marginally from the prior quarter's revenue of $151.6 million.
"Cypress's priority, as outlined in our 1998 annual report, has been to grow our revenue faster than that of the semiconductor industry by dramatically increasing our new product revenue, not only through improved R&D efficiency, but also by acquiring related businesses with important intellectual property," said Cypress CEO T.J. Rodgers in a company statement.
"New product momentum drove up our overall revenue by 21.1% over last year, a growth rate more than double that of the industry," he continued, adding that he was pleased with the company's results, and upbeat on revenue growth for the rest of 1999.
Cypress has usually fared well it the turbulent semiconductor sector, having led a rally in the industry last June.
Shares in the maker of lifecycle management software were down 7 percent, sinking 1 1/8 to 14 11/16 Tuesday morning.
Earnings were more than double last year's third quarter net income of $15.2 million, or 5 cents a share. Revenue of $264.1 million was up from $245.0 million in the third quarter a year ago. Pro forma net income, which excludes the amortization of intangible assets related to acquisitions, was $42.9 million, or $0.16 per share, for the third quarter of fiscal 1999.
"Our transition to a more strategic, solutions-oriented selling approach has taken longer than expected to reach full productivity. The sales process with larger accounts is more time-consuming and less predictable, and some of the major deals we were working on did not close in Q3,'' said Steven C. Walske, chairman and chief executive officer in a company release.
Shares also suffered when the company was downgraded last May.