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Check Point Software Technologies (Nasdaq: CHKP) missed analysts' forecasts for first-quarter 2005 revenues, but did better than expected profit-wise.

The data security company said revenues reached $137.7 million, just under Wall Street expections of $139 million. The company netted $73.7 million, which was on target with the company's projections.

Excluding one-time costs for the purchase of Zone Labs, Check Point earned 30 cents per share, or $75.7 million, while the Street had expected pro forma earnings of 29 cents. Its quarterly profit was 78 percent up from the parallel quarter and down 3.5 percent from the previous quarter.

Analysts had expected Tel Aviv-based Check Point to earn 29 cents per share. Check Point itself had guided investors to expect revenues in the range of $136-140 million, and a net of 28-29 cents per share.

"We are pleased with our first quarter results, which showed significant growth in profits and revenues," said Gil Shwed, chairman and CEO. "We continued to extend our annuity based revenues which were spearheaded by growing sales of two of our new offerings: ZoneAlarm security services for the consumer segment and SmartDefense real time security updates for our enterprise customers."

Against the parallel, revenues in the first quarter climbed 19 percent, but fell 4 percent against the preceding quarter. The last quarter of each year, though, is traditionally a strong one in the field,.

Check Point enjoyed a 50-percent leap in operating cash flow to $97.1 million in the quarter, its highest in the past five years. This also reflected a reduction in the company's DSO (Days Sales Outstanding, a measure of the average number of days that customers take to pay their bills) from 56 to 49.

"This testifies to an improved collection rate and that our distributors are cooperating and paying on time," said CFO Eyal Desheh. "Generally, they are very attached today to Check Point," he added.