Second-quarter net income at the firewall maker was down 16% on the year, to $65.7m, $0.27 per share. Revenue was down almost 4% at $138.9m.
Talking to analysts shortly after the announcement, executives were a little vague on the reasons for the slump, which came within the guided range. Revenue missed analyst targets by over $1m. It appears to have been down to a combination of factors.
The game remains tough at the low end of the market, where competition is intense, they said. However, enterprises with deep pockets are still paying for the high-end products, they indicated. The World Cup in Germany also may have touched European sales, they said.
Europe is kind of a little sleepy in the summer months, and the World Cup in Europe probably added to that a little bit, president Jerry Ungerman said.
But both Ungerman and Schwed said indicated that, while they were obviously hopeful the current military crisis in Israel and Lebanon does not escalate, 98% of Check Point’s business is done away from home, so the current situation will not massively hit its numbers.
