Check Point Software Technologies Ltd. (CHKP:US), the world’s second-largest security networks maker, tumbled the most since 2003 in New York on concern revenue growth will slacken after third-quarter billings fell.
Check Point, based in Tel Aviv, sank 13 percent to $41.40 by 11:37 a.m. in New York, leading declines on the Bloomberg Israel-US Equity Index (ISRA25BN) of the most-traded Israeli companies in the U.S. Shares are down 21 percent this year, poised for the biggest annual slump since 2002.
Third-quarter billings dropped 1 percent in the third quarter because of falling demand in Europe, according to Nomura Holdings Inc. and FBN Securities Inc. More competition from Santa Clara, California-based Palo Alto Networks Inc. (PANW:US), is also taking away market share from the company, Nomura and FBN said.
“The billings number looked quite weak,” Richard Sherlund, an analyst at Nomura Holdings said by phone in New York today. “Europe was a big part of it and Palo Alto has been taking away sales opportunities.”
Sales for the three months ended September rose 7.8 percent to $332 million, according to an e-mailed statement today. Check Point forecast fourth-quarter revenue of $355 million to $387 million, which compares with the $382 million average estimate of 27 analysts surveyed by Bloomberg.
To contact the reporter on this story: Leon Lazaroff in New York at email@example.com
To contact the editor responsible for this story: Emma O’Brien at firstname.lastname@example.org