Check Point Plunges on Grim Outlook

Author:: Michael Dunn
Publish date:: Apr 4, 2002 11:26 AM EST

Check Point Software

warned that its first-quarter results would be below analyst expectations because of a continued depression in information technology spending.

The company, which provides secure transactions on the Internet, said it now expects first-quarter earnings of 24 cents or 25 cents a share on revenue of $104 million to $105 million. In the year-ago quarter, the company earned 32 cents a share on revenue of $145 million.

According to Thomson Financial/First Call, Wall Street analysts had been expecting earnings of 29 cents a share on revenue of $122.16 million for the first quarter.

According to a press release, the company said it continues to see an increased level of interest, but that this activity didn't translate into its expected level of business, due primarily to a weak economy and depressed IT spending. Check Point offered little additional guidance, saying only that future "visibility remains low."

Shares of Check Point Software were recently in free fall, down 23.3% to $21.05 with heavy trading on the earnings news after closing at $27.46 yesterday.