Check Point says Sept 11 cost it $15-$20m
Still showing profit, taking on staff
Check Point Software, best known as a supplier of firewall and VPN products, has reported healthy third quarter profits despite estimating the tragic events of September 11 cost it between $15-$20 million, due to interruption of its business.
Revenues for Check Point's third quarter were $118.0 million on which it recorded a net income of $74.3 million, compared to net income of $61.6 million for Q3 2000. Last quarter Check Point failed to meet sales expectation, so things seem to have improved.
Check Point generated positive cash flow of $78.2 million in the third quarter, bringing total cash and interest bearing investments to $944.2 million on September 30, 2001.
Unusual for an IT firm, Check Point increased the number of people who worked for it during the quarter. It added 25 security specialists to its field operations staff.
During the quarter, the firm began shipping Check Point Next Generation (NG), a major revision of its flagship Internet security software, which increased the throughput which its firewall products could operate at. Benchmarks delivered over 500 Mbps throughput on $4,000 midrange PCs/servers and "Secured by Check Point" appliances.
It plans to upgrade this product line with a feature pack improving VPN performance, availability and ease-of-management, next quarter. ®