Check Point Software Q4 Profit Up; Reports $1 Bln Expansion Of Share Repurchase

(RTTNews) - Check Point Software Technologies Ltd. (CHKP) reported that its fourth-quarter GAAP net income was $194.1 million, an increase of 12 percent, from $174.0 million in the fourth quarter of 2012. GAAP earnings per share increased 16% to $0.99 from last year's $0.85.

Non-GAAP net income was $192.0 million, up 4 percent from $185.1 million in the prior year. Non-GAAP earnings per share were $0.98, an increase of 8 percent, compared to $0.91 in the previous year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.95 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter were $387.1 million, an increase of 5 percent, from $368.6 million in the fourth quarter of 2012. Twenty five analysts had consensus revenue estimate of $383.58 million for the quarter.

In a separate press release, Check Point Software announced that its board has authorized an extension and expansion to the company's on-going share repurchase program. Under the updated plan, effective immediately, the company is authorized to repurchase up to $200 million of its outstanding shares each quarter up to an aggregate of $1.0 billion.

In 2013, the company repurchased approximately 10.1 million shares in an aggregate amount of approximately $538 million which represented an average repurchase per quarter of $135 million.

As of December 31, 2013, Check Point has about 192.3 million ordinary shares outstanding.

The company started its share buyback program in 2003, and has since repurchased approximately 104.5 million shares for a total purchase price of approximately $3.1 billion.

The company stated that the new plan replaces the previous repurchase plan adopted in July 2012, which provided for the repurchase of shares for $1 billion over a period of two years.