American-Israeli Enterprise Security Firm Check Point Software Clocks Strong Security Subscriptions In Q3, But Sees Decline in Product Sales

Check Point Software Technologies Ltd CHKP reported third-quarter FY23 revenue growth of 3% year-on-year to $596.3 million, beating the consensus of $591.5 million. 

The American-Israeli enterprise security solution provider's adjusted EPS of $2.07 beat the consensus of $2.02.

Also Read: Check Point Software Gains Ground: Morgan Stanley Highlights Stable Demand And Promising Portfolio Expansion

The Cisco Systems, Inc CSCO rival's revenue from Products and licenses declined 13.7% Y/Y to $114.2 million, Security subscriptions increased 15.2% Y/Y to $248.3 million, and Software updates and maintenance grew 1.8% Y/Y to $233.8 million.

Margin: Adjusted operating margin remained steady at 45% Y/Y. 

The company generated $222 million in operating cash flow and held $2.99 billion in cash and equivalents.

"We achieved total revenues near the top of our forecast range, with earnings per share hitting the peak," stated Gil Shwed, Founder and CEO of Check Point Software.

The company expects fourth-quarter revenue of $636 million - $686 million as against a consensus of $668.68 million. It forecasted an adjusted EPS of $2.35 - $2.55 versus the $2.37 estimate.

Price Action: CHKP shares traded lower by 0.38% at $131.40 on the last check Monday.