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Check Point Software Beats Estimates

But profit falls on charges.

IT security company

Check Point Software Technologies

(CHKP) - Get Check Point Software Technologies Ltd. Report

beat analysts' expectations for the first quarter, but profit fell nearly 24% on acquisition-related charges.

Net income fell to $46.9 million from $61.6 million a year earlier. The company faced a charge of $17 million related to the acquisition of Protect Data and additional acquisition related charges of $5.4 million related to the acquisitions of Protect Data and NFR Security.

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Excluding items, Check Point earned $78.6 million, or 35 cents a share, compared to 75.1 million, or 31 cents a share, in the first quarter of 2006.

Analysts polled by Thomson Financial were expecting earnings of 34 cents a share.

Revenue increased 23% to $164 million, better than analysts' expectations of $163.3 million.

Network security contributed $146.5 million to revenue, an increase of 10%, compared with a year earlier.

Shares of Check Point were recently up $1.30, or 5.7%, to $24.25. Various media outlets later reported the company said during its conference call that it expects to earn 33 cents to 38 cents a share before items on revenue of $166 million to $176 million, bracketing analyst expectations.