Check Point releases impressive FY2008, Q4 2008 financial results

One sparrow does not a summer make, and the impressive Q4 financial results of one security company do not mean that the homeland security sector will escape unscathed from the current economic downturn — and yet, and yet. We reported the other day about the U.S. Customs and Border Protection agency’s plan to hire 11,000 additional border patrol agents in 2009 (26 January 2009 HS Daily Wire), and about the expected growth of India’s IT security sector (26 January 2009 HS Daily Wire). The other day, Check Point Software reported record Q4 and FY2008 financial results.

You may recall that three years ago, in March 2006, Israeli IT security innovator Check Point withdrew its application to the Committee on Foreign Investment in the United States (CFIUS) to be allowed to acquire Maryland-based IT security firm Sourcefire. Those were the days following the firestorm which erupted after CFIUS allowed the UAE-based DPW to acquire management operations in leading U.S. sea ports. Many thought that as the United States was expanding its global war on terror, it was not a good idea to have a Dubai company manage major U.S. ports. The DPW sale went through (after a year and a half, DPW sold the port management operations to AIG, collecting a hefty profit) — but other foreign companies waiting for CFIUS’s approval suffered. Since Sourcefire does hush-hush encryption and security work form the U.S. intelligence community and the military, there was a palpable unease about an Israeli company acquiring Sourcefire. That unease was faithfully, if informally, conveyed the Check Point, and the Israeli company gracefully bowed out.

The company continued to do well, though. Check Point has just announced its financial results for the fourth quarter and fiscal year ending 31 December 2008. Here is a sample:

• Revenue: $808.5 million — 11 percent increase year over year
• Operating Income Non-GAAP: $425.8 — 15 percent increase year over year
• EPS Non-GAAP: $1.78 — 12 percent increase year over year
• Deferred Revenues: $330.8 million — 21 percent increase year over year
• Cash Flow from Operations: $429.9 million - 16 percent increase year over year

“Our financial results for the year continued to underscore the success of our Total Security strategy. This was an all time record quarter and fiscal year for Check Point,” said Gil Shwed, chairman and chief executive officer at Check Point. “As a result of the technology leadership of our products and the great work of our teams worldwide, we were able to achieve revenue growth of 11 percent