Check Point 'actively' looking at acquisitions

Security vendor drops its 2016 revenue expectations as customers shift to subscription-based products faster than expected

Security vendor Check Point is "looking very actively" at acquisitions, according to its CEO Gil Shwed.

On an earnings call Shwed said that the firm is open to the prospect of expansion, but that it is difficult to find things that "really fit our architecture".

"We're looking for the right technologies that can complement our product line and let us provide the customers with more consolidating and better architected solutions," he said. "When we find these, large or small, we will act upon it."

Check Point saw revenue increase by seven per cent annually to $423m (£323m) in the three months ending 30 June, while GAAP operating income rose 1.5 per cent to $202m.

Shwed said that the firm did not "see much impact" from Brexit in Q2, but admitted he did not know what the impact would be in Q3.

The vendor has lowered its revenue expectations for this year, with more revenue than expected set to be deferred to 2017. This is a result of customers moving to subscription-based solutions faster than anticipated, said the firm.

"Our business model is slightly shifting as a result of our success with the new appliances that include additional options for bundled software blades," he added.

"With these new offerings, more revenues are being recognised as subscription revenues and less as product revenues.

"The subscriptions are recognised over a period of a year, with the potential for future renewal growth creating long-term revenue stream, while the product revenues appears immediately on the quarterly results."