Check Point (CHKP) is an industry leading developer, marketer and supporter of software and hardware products and services for information technology security applications worldwide.  CHKP provides an extensive portfolio of network and gateway security solutions, data and endpoint security solutions and management solutions.  CHKP has over 2,500 employees and operates in 92 countries. CHKP is headquartered in Tel Aviv and its U.S. headquarters are in Redwood City, CA. Its sales breakdown by geographic segment includes 44% in the Americas, 39% for Europe and Asia/Africa/Middle East accounting for 17% of revenue as of the most recent quarter. CHKP pioneered computer network security with its FireWall-1 product and its Stateful Inspection Technology is the de facto standard in network technology.  This technology provides clients’ higher performance, scalability and the ability to support new and custom applications much more quickly.

Source: Check Point’s Q2 Earnings Transcript


Network Security – Check Point’s core business has historically focused on network security components including Firewall, IPsec VPN, Mobile Access, Intrusion Prevention, Antivirus, Anti-spam, URL filtering, Data Loss Prevention and Application Control. These products are deployed as software on x86 based servers or appliances, either from external technology partners or on CHKP’s own line of appliances which includes Safe@Office, UTM-1 Edge, UTM-1, Power-1, IP Appliances, and Integrated Appliance Solutions platforms.

Virtualization Security – The Security Gateway VE product for virtual environments, which runs on VMware ESX and ESXi, secures virtual machines and applications via either hypervisor integration using the VMSafe API, or as a VMware network appliance. A separate product called VPN Power-1 VSX can host multiple virtual security gateways on a single machine.

Data Security – Data security solutions focus on securing data throughout the stages of the data lifecycle. VPNs, access controls, and the DLP security gateway product secure data-in-motion and data-in-use. Check Point Document Security focuses on protecting data-in-use. Full Disk Encryption, Media Encryption and Port Control secure data-at-rest on endpoints.

Endpoint Security-deployed as a single security agent combining firewall, antivirus, anti-spyware, full disk encryption, removable media encryption, I/O USB port protection , network access control, and a VPN client. The networked endpoints security policies can be centrally managed from one single location via the Endpoint Policy Management Software Blade product.

Mobile Security – the Check Point Mobile Access software product provides secure access to corporate resources via a SSL VPN portal for devices such as laptops, mobile phones, and tablet PCs. The Check Point GO USB device provides a secure virtual desktop for Microsoft Windows machines, allowing remote access of the corporate network via a VPN connection, and also contains encrypted storage for confidential data.

Security Management – Allows administrators to manage events, set policy and apply protections across the entire security infrastructure from a single interface. Solutions are based on the Software Blade architecture, with a portfolio of 11 management software blades including event analysis, correlation, multi-domain security management, and device provisioning.

Management: Gil Shwed has been Check Point’s CEO and Chairman since co-founding the company in 1993 with Marius Nacht, who has been Vice Chairman of the Board since 2001.  After he completed his military service obligation, he and two other Check Point co-founders used their experience in the Israel Defense Force’s Unit 8200 (Signal/Intelligence Corps and code decryption) to write the first version of FireWall-1, which was introduced in 1994 and is still owned by CHKP.  Shwed was voted the 69th greatest Israeli of all time.  I also like that there is a stable, long-tenured management team, which helps provide smooth operational execution.

Ownership: Nearly 25% of the outstanding stock is owned by the Co-Founders Shwed and Nacht (22% directly plus an additional 3% through employee stock options).  Collectively they own about $2.4B worth of stock directly, which provides a satisfactory level of alignment between the interests of stockholders, management and other stakeholders, though we would prefer that the company did not have anti-takeover provisions giving the board the authority to issue preferred shares in order to thwart a takeover.


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