UNITED STATES SECURITIES AND EXCHANGE COMMISSION
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INVESTOR CONTACT:
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MEDIA CONTACT:
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Kip E. Meintzer
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Adolph Hunter
|
Check Point Software Technologies
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Check Point Software Technologies
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+1.650.628.2040
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+1.650.628.2260
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ir@checkpoint.com
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press@checkpoint.com
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·
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Total Revenues: $455 million, a 6 percent increase year over year
|
·
|
Software Blades Subscriptions Revenues: $120 million, a 22 percent increase year over year
|
·
|
GAAP Operating Income: $225 million, representing 49 percent of revenues
|
·
|
Non-GAAP EPS: $1.30, a 15 percent increase year over year
|
·
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Deferred Revenues: $1,036 million, a 17 percent increase year over year
|
·
|
·
|
·
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Deferred Revenues: As of September 30, 2017, deferred revenues were $1,036 million compared to $889 million as of September 30, 2016.
|
·
|
·
·
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Share Repurchase Program: During the third quarter of 2017, the company repurchased 2.3 million shares at a total cost of $250 million. Under the updated plan announced in the third quarter, Check Point is authorized to continue the repurchase up to $250 million of ordinary shares each quarter, up to an additional aggregate amount of $1 billion.
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·
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Credit Suisse Annual Technology Conference
Nov. 29, 2017 – Scottsdale, AZ |
·
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Cowen Network & Cybersecurity Summit
Dec. 13, 2017 – New York, NY |
Three Months Ended
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Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
|||||||||||||
$
|
128,703
|
$
|
136,931
|
$
|
393,317
|
$
|
395,909
|
|||||||||
98,575
|
279,403
|
|||||||||||||||
249,031
|
235,506
|
743,656
|
675,312
|
|||||||||||||
Software updates and maintenance
|
205,596
|
192,068
|
604,994
|
579,282
|
||||||||||||
Total revenues
|
454,627
|
427,574
|
1,348,650
|
1,254,594
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Cost of products and licenses
|
24,374
|
25,244
|
74,467
|
73,408
|
||||||||||||
Cost of software blades subscriptions
|
3,824
|
3,009
|
13,253
|
6,695
|
||||||||||||
Total cost of products and software blades
|
28,198
|
28,253
|
87,720
|
80,103
|
||||||||||||
Cost of Software updates and maintenance
|
23,090
|
21,371
|
65,166
|
61,536
|
||||||||||||
Amortization of technology
|
546
|
546
|
1,638
|
1,638
|
||||||||||||
Total cost of revenues
|
51,834
|
50,170
|
143,277
|
|||||||||||||
Research and development
|
49,222
|
44,443
|
141,682
|
130,631
|
||||||||||||
Selling and marketing
|
104,386
|
326,831
|
303,702
|
|||||||||||||
General and administrative
|
22,674
|
22,087
|
68,207
|
66,124
|
||||||||||||
Total operating expenses
|
229,693
|
221,086
|
691,244
|
643,734
|
||||||||||||
Operating income
|
224,934
|
206,488
|
657,406
|
610,860
|
||||||||||||
Financial income, net
|
12,223
|
12,145
|
33,902
|
33,908
|
||||||||||||
Income before taxes on income
|
237,157
|
218,633
|
691,308
|
644,768
|
||||||||||||
Taxes on income
|
44,455
|
48,981
|
127,693
|
141,875
|
||||||||||||
Net income
|
$
|
192,702
|
$
|
169,652
|
$
|
563,615
|
$
|
502,893
|
||||||||
Basic earnings per share
|
$
|
1.19
|
$
|
1.00
|
$
|
3.45
|
$
|
2.94
|
||||||||
Number of shares used in computing basic earnings per share
|
162,104
|
169,113
|
163,502
|
171,140
|
||||||||||||
Diluted earnings per share
|
$
|
1.16
|
$
|
0.99
|
$
|
3.37
|
$
|
2.88
|
||||||||
166,153
|
171,882
|
167,447
|
174,549
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
Sep 30,
|
Sep 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
|||||||||||||
$
|
224,934
|
$
|
206,488
|
$
|
657,406
|
$
|
610,860
|
|||||||||
20,818
|
65,100
|
61,034
|
||||||||||||||
Amortization of intangible assets and acquisition related expenses (2)
|
3,259
|
3,282
|
9,777
|
9,858
|
||||||||||||
Non-GAAP operating income
|
$
|
250,840
|
$
|
230,588
|
$
|
732,283
|
$
|
681,752
|
||||||||
GAAP net income
|
$
|
192,702
|
$
|
169,652
|
$
|
563,615
|
$
|
502,893
|
||||||||
Stock-based compensation (1)
|
22,647
|
20,818
|
65,100
|
61,034
|
||||||||||||
Amortization of intangible assets and acquisition related expenses (2)
|
3,259
|
3,282
|
9,777
|
9,858
|
||||||||||||
Taxes on the above items (3)
|
(3,311
|
)
|
(244
|
)
|
(9,689
|
)
|
(2,740
|
)
|
||||||||
Non-GAAP net income
|
$
|
215,297
|
$
|
193,508
|
$
|
628,803
|
$
|
571,045
|
||||||||
Diluted GAAP Earnings per share
|
$
|
1.16
|
$
|
0.99
|
$
|
3.37
|
$
|
2.88
|
||||||||
Stock-based compensation (1)
|
0.14
|
0.12
|
0.39
|
0.35
|
||||||||||||
Amortization of intangible assets and acquisition related expenses (2)
|
0.02
|
0.02
|
0.06
|
0.06
|
||||||||||||
Taxes on the above items (3)
|
(0.02
|
)
|
-
|
(0.06
|
)
|
(0.02
|
)
|
|||||||||
Diluted Non-GAAP Earnings per share
|
$
|
1.30
|
$
|
1.13
|
$
|
3.76
|
$
|
3.27
|
||||||||
Number of shares used in computing diluted Non-GAAP earnings per share
|
166,153
|
171,882
|
167,447
|
174,549
|
||||||||||||
(1) Stock-based compensation:
|
||||||||||||||||
$
|
38
|
$
|
16
|
$
|
77
|
$
|
50
|
|||||||||
Cost of software updates and maintenance
|
700
|
560
|
1,932
|
1,535
|
||||||||||||
Research and development
|
4,383
|
2,993
|
9,291
|
|||||||||||||
Selling and marketing
|
4,978
|
5,508
|
13,442
|
13,311
|
||||||||||||
General and administrative
|
12,548
|
11,741
|
37,668
|
36,847
|
||||||||||||
$
|
22,647
|
$
|
20,818
|
$
|
65,100
|
$
|
61,034
|
|||||||||
(2) Amortization of intangible assets and acquisition related expenses:
|
||||||||||||||||
Amortization of technology-cost of revenues
|
$
|
546
|
$
|
546
|
$
|
1,638
|
$
|
1,638
|
||||||||
Research and development
|
1,897
|
1,897
|
5,691
|
5,691
|
||||||||||||
816
|
839
|
2,448
|
2,529
|
|||||||||||||
$
|
3,259
|
$
|
3,282
|
$
|
9,777
|
$
|
9,858
|
|||||||||
(3) Taxes on the above items
|
$
|
(3,311
|
)
|
$
|
(244
|
)
|
$
|
(9,689
|
)
|
$
|
(2,740
|
)
|
||||
Total, net
|
$
|
22,595
|
$
|
23,856
|
$
|
65,188
|
$
|
68,152
|
September 30,
|
||||||||
2017
|
2016
|
|||||||
(unaudited)
|
(audited)
|
|||||||
$
|
261,027
|
$
|
187,428
|
|||||
Marketable securities and short-term deposits
|
1,249,030
|
1,185,499
|
||||||
Trade receivables, net
|
281,603
|
478,507
|
||||||
Prepaid expenses and other current assets
|
93,673
|
41,021
|
||||||
Total current assets
|
1,885,333
|
1,892,455
|
||||||
Marketable securities
|
2,354,542
|
2,296,097
|
||||||
Property and equipment, net
|
75,056
|
61,859
|
||||||
Severance pay fund
|
4,988
|
4,617
|
||||||
Deferred tax asset, net
|
151,870
|
94,608
|
||||||
Goodwill and other intangible assets, net
|
831,347
|
834,167
|
||||||
Other assets
|
28,432
|
33,833
|
||||||
Total long-term assets
|
3,446,235
|
3,325,181
|
||||||
Total assets
|
$
|
5,331,568
|
$
|
5,217,636
|
Current liabilities:
|
||||||||
$
|
764,319
|
$
|
814,418
|
|||||
Trade payables and other accrued liabilities
|
334,048
|
351,440
|
||||||
Total current liabilities
|
1,098,367
|
1,165,858
|
||||||
Long-term liabilities:
|
||||||||
Long-term deferred revenues
|
271,987
|
251,166
|
||||||
Income tax accrual
|
359,837
|
300,536
|
||||||
Accrued severance pay
|
9,960
|
8,953
|
||||||
641,784
|
560,655
|
|||||||
Total liabilities
|
1,740,151
|
1,726,513
|
||||||
Shareholders’ equity:
|
||||||||
Share capital
|
774
|
774
|
||||||
Additional paid-in capital
|
1,277,307
|
1,139,642
|
||||||
Treasury shares at cost
|
(5,646,565
|
)
|
(4,956,172
|
)
|
||||
Accumulated other comprehensive loss
|
(3,826
|
)
|
(9,250
|
)
|
||||
Retained earnings
|
7,963,727
|
7,316,129
|
||||||
Total shareholders’ equity
|
3,491,123
|
|||||||
Total liabilities and shareholders’ equity
|
$
|
5,331,568
|
$
|
5,217,636
|
||||
Total cash and cash equivalents, marketable securities and short-term deposits
|
$
|
3,864,599
|
$
|
3,669,024
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
|||||||||||||
Cash flow from operating activities:
|
||||||||||||||||
$
|
192,702
|
$
|
169,652
|
$
|
563,615
|
$
|
502,893
|
|||||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||||||
3,292
|
3,099
|
9,290
|
8,491
|
|||||||||||||
Amortization of intangible assets
|
940
|
963
|
2,820
|
2,901
|
||||||||||||
Stock-based compensation
|
22,647
|
20,818
|
65,100
|
61,034
|
||||||||||||
Realized loss (gain) on marketable securities
|
29
|
(1,743
|
)
|
172
|
(2,867
|
)
|
||||||||||
Decrease in trade and other receivables, net
|
55,001
|
20,317
|
196,935
|
161,534
|
||||||||||||
(16,300
|
)
|
5,076
|
(24,906
|
)
|
19,150
|
|||||||||||
Excess tax benefit from stock-based compensation
|
-
|
(3,387
|
)
|
-
|
(8,200
|
)
|
||||||||||
Deferred income taxes, net
|
1,512
|
(662
|
)
|
28,506
|
(1,876
|
)
|
||||||||||
Net cash provided by operating activities
|
259,823
|
214,133
|
841,532
|
743,060
|
||||||||||||
Cash flow from investing activities:
|
||||||||||||||||
Investment in property and equipment
|
(8,412
|
)
|
(7,143
|
)
|
(22,487
|
)
|
(17,793
|
)
|
||||||||
Net cash used in investing activities
|
(8,412
|
)
|
(7,143
|
)
|
(22,487
|
)
|
(17,793
|
)
|
||||||||
Cash flow from financing activities:
|
||||||||||||||||
Proceeds from issuance of shares upon exercise of options
|
56,324
|
46,310
|
120,030
|
79,839
|
||||||||||||
Purchase of treasury shares
|
(249,769
|
)
|
(247,000
|
)
|
(745,618
|
)
|
(739,937
|
)
|
||||||||
Excess tax benefit from stock-based compensation
|
-
|
3,387
|
-
|
8,200
|
||||||||||||
(772
|
)
|
(209
|
)
|
(4,836
|
)
|
(2,937
|
)
|
|||||||||
Net cash used in financing activities
|
(194,217
|
)
|
(197,512
|
)
|
(630,424
|
)
|
(654,835
|
)
|
||||||||
Unrealized gain (loss) on marketable securities, net
|
999
|
(9,609
|
)
|
6,954
|
22,009
|
|||||||||||
Increase (decrease) in cash and cash equivalents, marketable
securities and short term deposits
|
58,193
|
(131
|
)
|
195,575
|
92,441
|
|||||||||||
Cash and cash equivalents, marketable securities and
short term deposits at the beginning of the period
|
3,806,406
|
3,707,986
|
3,669,024
|
3,615,414
|
||||||||||||
Cash and cash equivalents, marketable securities
and short term deposits at the end of the period
|
$
|
3,864,599
|
$
|
3,707,855
|
$
|
3,864,599
|
$
|
3,707,855
|
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