Check Point Software Reports 1% Revenue Decline Amid Shifting Subscription Mix
Check Point Software Technologies (CHKP) reported third-quarter revenue of $669.8 million, representing a 1% year-over-year decline. While management suggests that revenue has reached a trough, the company faces significant headwinds as product and license sales plummeted by 19%. This contraction in hardware and software licensing is expected to create future pressure on maintenance and service revenues. Although security subscription revenue grew by 11% to $338.6 million, it was insufficient to offset the declines in other segments. Additionally, reported operating margins were bolstered by a $25 million R&D tax credit from an Israeli program; without this credit, operating margins would have been approximately 23% rather than the reported 26%. Investors are now looking toward the fourth-quarter results to confirm if the revenue bottom has truly been established.
Tickers: $CHKP
Topics: earnings report operating income R&D credit revenue decline subscription growth
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Part of the story Check Point Software Reports 1% Revenue Decline Amid Shifting Subscription Mix (4 articles)