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Check Point Rides on Strong Adoption of Security Solutions

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Check Point Software Technologies Ltd. (CHKP - Free Report) is riding on positive feedback and growing adoption among enterprises. Recently, custom steel dies provider — Phoenix International — testified that it has been able to use 80% less time to manage the IT security over its various global branches using Check Point’s Next Generation Security Gateway.

The company’s network security gateways protect customer data, reduce security complexities and lower the total cost of ownership. Customers are able to implement their security policies on traffic between internal networks and the Internet, as well as between internal and private networks that are shared with partners.

The Next Generation Security Gateway features a user-friendly, centralized security management console, which aids in smooth management of IT security systems of various devices via a single unit.

Security subscription revenues continue to be strong, as seen in the September quarter, wherein it totaled $136.4 million, up 13.4% year over year.

IT Manager of Phoenix International Stefano Biava said, “Not only has business continuity improved with the Check Point solution, but security device configuration is simplified and much faster. Before we deployed Check Point, it took days because we had to go to each device. Now it takes just minutes from a central console at our headquarters.”

Efforts in Cybersecurity Market Bode Well

Enterprises face continued sophisticated cyber threats, making cyber security a mission-critical, high-profile requirement. Check Point’s rich experience in the security space and continued delivery of mission-critical solutions are helping it gain customer accounts. In its last reported quarter, the number of new customers — who signed deals worth $1 million or more — remained consistent sequentially at 58.

The company is focused on enhancing its threat intelligence portfolio with acquisitions, partnerships and innovative technologies. During the last reported quarter, Check Point bagged several deals in various industries. Moreover, the company entered into an Independent Software Vendor partnership with Blackberry (BB - Free Report) to combat cyber security threats.

Also, it recently launched SandBlast Mobile 3.0, which offers threat prevention technology for enterprises to enable employees to safely conduct business using their mobile devices. Further, Check Point unveiled Generation V Security Gateway for enterprises and data centers.

Check Point also announced its acquisition of Dome9 recently, with which the company expects to enhance its Infinity architecture and CloudGuard security offering. It believes that the combination of Dome9, CloudGuard IaaS and SandBlast products will expand its cloud security capabilities.

Notably, per MarketsandMarkets, global cybersecurity market will reach $248.3 billion by 2023, reflecting a CAGR of 10.2% through 2018 to 2023. This bodes well for Check Point.

Zacks Rank & Stocks to Consider

Check Point currently has a Zacks Rank #3 (Hold).

A couple of better-ranked stocks in the broader Computer and Technology sector are CACI International, Inc. (CACI - Free Report) and Synopsys, Inc. (SNPS - Free Report) , each flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth for CACI and Synopsys is projected to be 10% each.

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