Benzinga | Apr 26, 2021 06:52AM EDT

Check Point Software Technologies Posts Upbeat Q1 Results

* Check Point Software Technologies Ltd (NASDAQ: CHKP) reported first-quarter FY21 revenue growth of 4% year-on-year to $508 million, exceeding the consensus estimate of $502.36 million. Non-GAAP EPS rose 9% to $1.54, beating analyst consensus of $1.5.

* Products and licenses revenue declined 0.8% to $109.3 million, Security subscriptions revenue rose 11.7% to $177.4 million, and Software updates and maintenance revenue rose 1.6% to $220.9 million.

* Non-GAAP operating income rose 6.5% to $246 million. The margin expanded 100 basis points to 49%.

* Deferred revenue rose 8% to $1.5 billion.

* The company held $4.1 billion in cash and cash equivalents as of Mar. 31, 2021. It generated $375 million in operating cash flow.

* The company repurchased 2.7 million shares at $325 million in Q1.

* Revenues and non-GAAP EPS were toward the high-end of its guidance with CloudGuard bolstering this success with nice double-digit growth, stated CEO Gil Shwed. The company's Infinity architecture can uniquely address the cyber threat needs and consolidate security for the user, the network, and the cloud to prevent Gen V cyber-attacks, Shwed added.

* Price action: CHKP shares closed lower by 0.12% at $119.8 on Friday.