... Eleven years later, the Israeli whiz kid who never finished college is co-founder and chief executive of Check Point Software Technologies, one of the most profitable software companies around. How profitable? Well, in the first quarter ending March 31, Check . . .
... Eleven years later, the Israeli whiz kid who never finished college is co-founder and chief executive of Check Point Software Technologies, one of the most profitable software companies around. How profitable? Well, in the first quarter ending March 31, Check Point's operating margin was a mind-blowing 61%. It made $83.7 million in profit on just $145 million in revenue. Last year, revenues were $425 million, up nearly 100% from the year before. Goldman Sachs projects 2001 revenues will be $650 million.

Check Point sells security software, a must-have for any business connecting to the Internet. Despite the gloom surrounding the tech sector, a few silver linings -- companies like Check Point, VeriSign, and Symantec Corp. -- have shown through in the security field. Analysts at Dataquest expect the $2.5 billion market for security software to increase 22% this year.

Few companies sell more security software than Check Point. Shwed's company, with offices in Tel Aviv and Silicon Valley, is making its mark in the constant battle with hackers. It produces two key products, firewall software, which is meant to keep hackers out of computer networks, and virtual private network technology, which allows computer users to "tunnel" through the Internet in an encrypted shell that prevents anyone peeping at what they are writing. According to market researcher IDC, Check Point has a 52% share of the firewall market and 41% of the virtual network market.

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