CheckPoint Net Slips

CheckPoint Software's ( CHKP) first-quarter earnings fell sharply from a year earlier, as a charge related to an acquisition offset an 11% revenue increase.

The company earned $41.9 million, or 17 cents a share, in the latest quarter, compared with earnings of $60.1 million, or 24 cents a share, last year. Revenue was $116.1 million in the latest quarter compared with $104.8 million last year, as license revenue rose to $63 million from $58 million, subscription revenue rose to $44 million from $36 million, and services revenue slipped to $9 million from $9.7 million.

Income in the latest quarter includes a charge of $23.1 million related to CheckPoint's acquisition of Zone Labs; excluding the charge, CheckPoint earned $65.0 million, or 25 cents a share, in the latest quarter.

Analysts surveyed by Thomson First Call had been forecasting earnings of 23 cents a share on revenue of $113.8 million in the most recent quarter. The company reportedly said on a follow-up conference call that it expects to earn 23 cents to 25 cents a share on revenue of $123 million to $127 million in the current quarter, compared with the analyst consensus estimate of 24 cents a share on revenue of $124.7 million.

The shares were recently up 79 cents, or 3.6%, to $22.73.

More from Technology

Amazon, Microsoft and Google Face Backlash over ICE, Military Deals

Amazon, Microsoft and Google Face Backlash over ICE, Military Deals

As Intel Loses Its CEO, How Well Can It Compete Against Nvidia?

As Intel Loses Its CEO, How Well Can It Compete Against Nvidia?

3 Great Stock Market Sectors Millennials Should Invest In

3 Great Stock Market Sectors Millennials Should Invest In

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

3 Must Reads on the Market From TheStreet's Top Columnists

3 Must Reads on the Market From TheStreet's Top Columnists