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Check Point Software's Profit Grows

Earnings beat analysts' estimates.

Check Point Software

(CHKP) - Get Report

sailed past analysts' third-quarter earnings expectations as profit rose 8% on strength in its network security business.

The company said Monday that net income rose to $76.7 million, or 34 cents a share, from $71.1 million, or 31 cents a share, a year earlier.

Excluding charges, Check Point earned 41 cents a share.

Analysts polled by Thomson Financial were expecting earnings of 38 cents a share.

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Revenue increased 29% to $184 million, compared with $142.5 million a year ago, and higher than analysts' expectations of $178.7 million.

Network security accounted for $163 million in revenue, and data security contributed $21 million.

Deferred revenue in the quarter was $227.2 million, an increase of $53.8 million, or 31%, from the year before.

Shares of Check Point were recently off 6 cents to $25.92.

For the fourth quarter, Check Point guided revenue in the range of $196 million and $208 million. Excluding charges, the company expects earnings of 42 cents to 46 cents a share.

Analysts were expecting fourth-quarter revenue of $196.1 million and earnings of 43 cents a share.