6-K 1 zk1720693.htm 6-K

 
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
Form 6-K
 
Report of Foreign Private Issuer
 
Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934
 
For the month of October 2017
 
Commission File Number 000-28584
 
Check Point Software Technologies Ltd.
 (Translation of registrant's name into English)
 
5 Ha’solelim Street, Tel Aviv, Israel
(Address of principal executive offices)
 
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F:
 
Form 20-F ☒  Form 40-F ☐
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
 
Check Point Software Technologies Ltd., a company organized under the laws of Israel ( “Check Point” or the “Company”), hereby files with the United States Securities and Exchange Commission (the “SEC”) this Report on Form 6-K.  This Report on Form 6-K shall be deemed to be incorporated by reference into the Company’s registration statements under the Securities Act of 1933, as amended.
 
©2017 Check Point Software Technologies Ltd.
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INVESTOR CONTACT: 
MEDIA CONTACT:
Kip E. Meintzer
Adolph Hunter 
Check Point Software Technologies 
Check Point Software Technologies
+1.650.628.2040 
+1.650.628.2260
ir@checkpoint.com
press@checkpoint.com
   

CHECK POINT SOFTWARE TECHNOLOGIES REPORTS 2017 THIRD QUARTER FINANCIAL RESULTS

SAN CARLOS, CA – October 31, 2017 — Check Point® Software Technologies Ltd. (NASDAQ: CHKP), today announced its financial results for the third quarter ended September 30, 2017.

Third Quarter 2017:
 
·
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 Operating Income: $251 million, representing 55 percent of revenues
·
GAAP EPS: $1.16, an 18 percent increase year over year
·
Non-GAAP EPS: $1.30, a 15 percent increase year over year
·
Deferred Revenues: $1,036 million, a 17 percent increase year over year
 
“We delivered good third quarter financial results with revenues coming in toward the upper end of our projections and earnings per share that exceeded our projections. Our advanced threat protections continued to see nice adoption as the Infinity platform and vendor consolidation continues to resonate with customers,” said Gil Shwed, founder and chief executive officer, “During the quarter we continued to extend the reach of the Infinity platform and elevated the level of security we provide with anti-ransomware technology, cloud security for Azure stack, and the integration of the Microsoft Intune mobile management with our SandBlast mobile security.
 
Financial Highlights for the Third Quarter of 2017:
 
·
Total Revenue: $455 million compared to $428 million in the third quarter of 2016.
·
GAAP Operating Income: $225 million compared to $206 million in the third quarter of 2016.
·
Non-GAAP Operating Income: $251 million compared to $231 million in the third quarter of 2016.
·
GAAP Net Income and Earnings per Diluted Share: GAAP net income was $193 million compared to $170 million in the third quarter of 2016. GAAP earnings per diluted share were $1.16 compared to $0.99 in the third quarter of 2016.
·
Non-GAAP Net Income: Non-GAAP net income was $215 million compared to $194 million in the third quarter of 2016.
·
Non-GAAP Earnings per Diluted Share: $1.30 compared to $1.13 in the third quarter of 2016.
·
Deferred Revenues: As of September 30, 2017, deferred revenues were $1,036 million compared to $889 million as of September 30, 2016.
·
Cash Flow: Cash flow from operations of $260 million compared to $214 million in the third quarter of 2016.
·
 
·
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.
Cash Balances, Marketable Securities and Short Term Deposits: $3,865 million as of September 30, 2017, compared to $3,708 million as of September 30, 2016.
 
For information regarding the non-GAAP financial measures discussed in this release, as well as a reconciliation of such non-GAAP financial measures to the most directly comparable GAAP financial measures, please see “Use of Non-GAAP Financial Information” and “Reconciliation of GAAP to Non-GAAP Financial Information.”
 
©2017 Check Point Software Technologies Ltd.
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Business Highlights:

Advanced Security for Microsoft Azure Stack
Check Point announced that its flagship vSEC cloud security solution for Microsoft Azure has been enhanced to support Azure Stack, delivering consistent security across Azure public and hybrid cloud environments. Now Check Point customers are able to seamlessly protect Azure assets and workloads with industry-leading advanced threat prevention security, while also providing secure connectivity across on-premises networks and their Azure cloud environments.

SandBlast Advanced Security for Microsoft Enterprise Mobility
Check Point announced the integration of Check Point SandBlast Mobile with Microsoft Enterprise Mobility + Security (EMS) to secure mobile devices in the enterprise.  The integration of Check Point SandBlast Mobile, the market-leading mobile threat defense (MTD) solution, with Microsoft’s Intune enterprise mobility management (EMM) platform, provides businesses with a comprehensive approach to manage mobile devices and protect against advanced mobile attacks.

Check Point Launches New Research Online Platform and Releases Mid-Year Cyber Attack Trends Report
In 2017, almost 25% of all organizations globally have been impacted by a RoughTed malvertising cyber-attack.  Check Point launched a new online platform, Check Point Research, providing cyber threat intelligence insights to the greater community. Check Point Research is a platform that informs the threat intelligence community about original Check Point research, top trends in the cyber security space, and current threat landscape details.

New ZoneAlarm Anti-Ransomware Protects Home PCs Against Extortion Attacks
ZoneAlarm adds a critical layer of protection to safeguard consumers against fast-evolving ransomware such as WannaCry and Petya.  The launch of ZoneAlarm Anti-Ransomware, a new solution that identifies, quarantines, and removes sophisticated and evasive ransomware infections from users’ PCs, adds an essential layer of protection to home PCs and works alongside anti-virus software to provide PC users with broad protection against the growing threat of ransomware

We received the following industry accolades:

Cyber Security Architecture of the Future: Check Point Infinity is our fully consolidated cyber security platform that is focused on preventing attacks across networks, clouds, and mobile.

In this quarter we were recognized as a leader, and extended our leadership in Gartner’s 2017 Unified Threat Management (SMB Multifunction Firewalls) and Enterprise Network Firewalls (ENFW) Magic Quadrants, endorsing Check Point Infinity’s security vision and innovation for large and small business.

The new reports evaluate the company’s ‘completeness of vision’ and ‘ability to execute’ in areas such as security management and threat prevention solutions to diverse industries, small and midsized businesses and large enterprises. These recognitions reinforces Check Point’s continued strength in providing comprehensive security solutions to a wide range of customers.

15th “Recommended” Rating from NSS Labs Underscoring the strength of our security architecture is the latest results from NSS Labs where Check Point received our 15th “recommended” test rating and our 3rd for the Breach Detection System test.

Honored As A Rising Star Recipient By The Global Technology Distribution Council This award recognizes Check Point as the Sector Growth Champion in the cyber security category. The Rising Star Award distinguishes Check Point for exceptional sales growth and market share over the past year through its U.S. distribution partners. This award is a testament to Check Point’s continued strength in providing comprehensive security solutions to an expanding market.

PC Magazine Editor Choice – In testing Check Point ZoneAlarm Anti-Ransomware was judged to be the most effective ransomware-specific security tool, and showed complete success against all real-world samples.
 
©2017 Check Point Software Technologies Ltd.
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CSO Magazine – In an extensive editorial review headlined “SandBlast Mobile simplifies mobile security” the review stated “Check Point’s SandBlast Mobile fits in between mobile device managers and security event log analyzers, and actually makes it easier to manage the overall security footprint of your entire mobile device fleet.”
 
Our security research organization has also continued to expose vulnerabilities in today’s infrastructure, which included critical vulnerabilities in mobile equipment and applications, including:

Check Point Joins Forces with LG To Secure Their Smart Home Devices
Our security research team discovered a vulnerability dubbed HomeHack – that exposed millions of users of LG’s SmartThinQ® mobile app and cloud application to unauthorized remote control of their SmartThinkQ home appliances.  The research team worked with LG to eliminate the vulnerability that enabled a hacker to control the video camera on the LG Hom-Bot robot vacuum cleaner, and also to switch appliances such as dishwashers and washing machines on and off.

A New IoT Botnet Storm is ComingNew cyber-storm clouds are gathering. Check Point Researchers have discovered a brand new Botnet evolving and recruiting IoT devices at a far greater pace and with more potential damage than the Mirai botnet of 2016. IoT Botnets are Internet connected smart devices which have been infected by the same malware and are controlled by a threat actor from a remote location. They have been behind some of the most damaging cyberattacks against organizations worldwide, including hospitals, national transport links, communication companies and political movements.

‘Get Rich or Die Trying’  Check Point Researchers Uncover International Cyber Attack Campaign.
Check Point revealed the identity of a Nigerian national, based near the country’s capital who masterminded an attack on over 4,000 companies in oil & gas, mining, construction and transportation sectors.

ExpensiveWall A dangerous ‘packed’ malware on Google Play that will hit your wallet.
Check Point’s mobile threat research team identified a new variant of an Android malware that sends fraudulent premium SMS messages and charges users’ accounts for fake services without their knowledge. According to Google Play data, the malware infected at least 50 apps and was downloaded between 1 million and 4.2 million times before the affected apps were removed. 

Beware of the’ Bashware’– A New Method for Any Malware to Bypass Security Solutions.
The Check Point research team found a new and alarming method that allows malware to bypass many of the most common security solutions, such as next generation anti-virus, inspection tools, and anti-ransomware. This technique, dubbed Bashware, leveraged a new Windows 10 feature called Subsystem for Linux (WSL).

“The Check Point Infinity architecture is designed to provide enterprises with the highest levels of threat prevention across their security infrastructure. The effectiveness of our solutions has been recognized yet again by a fifteenth, consecutive ‘Recommended’ award from NSS Labs,” said Gil Shwed, founder and chief executive officer of Check Point Software Technologies.  “I’d like to thank our customers that provide us every day the most important recognition we can get by trusting us to secure their most valuable data.” concluded Shwed.

Fourth Quarter 2017 Investor Conference Participation Schedule:
 
·
 
UBS Global Technology Conference
Nov. 14, 2017 – San Francisco, CA
 
·
 
Credit Suisse Annual Technology Conference
Nov. 29, 2017 – Scottsdale, AZ
 
·
 
Wells Fargo Tech Summit
Dec. 5, 2017 – Deer Valley, UT
 
·
 
Cowen Network & Cybersecurity Summit
Dec. 13, 2017 – New York, NY
 
©2017 Check Point Software Technologies Ltd.
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Members of Check Point's management team are expected to present at these conferences and discuss the latest company strategies and initiatives. Check Point’s conference presentations are expected to be available via webcast on the company's web site. To view these presentations and access the most updated information please visit the company's web site at www.checkpoint.com/ir. The schedule is subject to change.

Conference Call and Webcast Information
Check Point will host a conference call with the investment community on October 31, 2017, at 4:30 PM ET/1:30 PM PT. To listen to the live webcast, please visit the website at: www.checkpoint.com/ir. A replay of the conference call will be available through November 6, 2017 on the company's website or by telephone at +1.201.612.7415, replay ID number 13672509.

About Check Point Software Technologies Ltd.
Check Point Software Technologies Ltd. (www.checkpoint.com) is a leading provider of cyber security solutions to governments and corporate enterprises globally.  Its solutions protect customers from cyber-attacks with an industry leading catch rate of malware, ransomware and other types of attacks. Check Point offers a multilevel security architecture that defends enterprises’ cloud, network and  mobile device held information, plus the most comprehensive and intuitive one point of control security management system. Check Point protects over 100,000 organizations of all sizes.

©2017 Check Point Software Technologies Ltd. All rights reserved

Legal Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.  Forward-looking statements generally relate to future events or our future financial or operating performance. Forward-looking statements in this press release include, but are not limited to, statements related to our expectations regarding our products and solutions, including the Check Point Infinity architecture, our continued focus on enabling companies to prevent cyber-attacks by introducing the Check Point Infinity architecture and our participation in investor conferences during the fourth quarter of 2017.  Our expectations and beliefs regarding these matters may not materialize, and actual results or events in the future are subject to risks and uncertainties that could cause actual results or events to differ materially from those projected.  These risks include our ability to continue to develop platform capabilities and solutions; customer acceptance and purchase of our existing solutions and new solutions; the market for IT security continuing to develop; competition from other products and services; and general market, political, economic and business conditions.  The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in our filings with the Securities and  Exchange Commission, including our Annual Report on Form 20-F filed with the Securities and Exchange Commission on April 28, 2017 The forward-looking statements in this press release are based on information available to Check Point as of the date hereof, and Check Point disclaims any obligation to update any forward-looking statements, except as required by law.

Use of Non-GAAP Financial Information
In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Check Point uses non-GAAP measures of operating income, net income and earnings per diluted share, which are adjustments from results based on GAAP to exclude, as applicable, stock-based compensation expenses, amortization of intangible assets and acquisition related expenses and the related tax affects. Check Point’s management believes the non-GAAP financial information provided in this release is useful to investors’ understanding and assessment of Check Point’s ongoing core operations and prospects for the future. Historically, Check Point has also publicly presented these supplemental non-GAAP financial measures in order to assist the investment community to see the Company “through the eyes of management,” and thereby enhance understanding of its operating performance. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of the non-GAAP financial measures discussed in this press release to the most directly comparable GAAP financial measures is included with the financial statements contained in this press release. Management uses both GAAP and non-GAAP information in evaluating and operating business internally and as such has determined that it is important to provide this information to investors.
 

©2017 Check Point Software Technologies Ltd.
All rights reserved         |         P.   5


CHECK POINT SOFTWARE TECHNOLOGIES LTD.
CONSOLIDATED STATEMENT OF INCOME
 (In thousands, except per share amounts)

   
Three Months Ended
   
Nine Months Ended
 
   
September 30,
   
September 30,
 
   
2017
   
2016
   
2017
   
2016
 
   
(unaudited)
   
(unaudited)
   
(unaudited)
   
(unaudited)
 
Revenues:
                       
   Products and licenses
 
$
128,703
   
$
136,931
   
$
393,317
   
$
395,909
 
   Software Blades subscriptions
   
120,328
     
98,575
     
350,339
     
279,403
 
Total revenues from products and software blades
   
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
     
154,524
     
143,277
 
                                 
   Research and development
   
49,222
     
44,443
     
141,682
     
130,631
 
   Selling and marketing
   
105,963
     
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
 
Number of shares used in computing diluted earnings per share
   
166,153
     
171,882
     
167,447
     
174,549
 
 
 
©2017 Check Point Software Technologies Ltd.
All rights reserved         |         P.   6

 
CHECK POINT SOFTWARE TECHNOLOGIES LTD.
RECONCILIATION OF GAAP TO NON GAAP FINANCIAL INFORMATION
 (In thousands, except per share amounts)

   
Three Months Ended
   
Nine Months Ended
 
   
Sep 30,
   
Sep 30,
 
   
2017
   
2016
   
2017
   
2016
 
   
(unaudited)
   
(unaudited)
   
(unaudited)
   
(unaudited)
 
                         
GAAP operating income
 
$
224,934
   
$
206,488
   
$
657,406
   
$
610,860
 
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
 
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:
                               
   Cost of products and licenses
 
$
38
   
$
16
   
$
77
   
$
50
 
   Cost of software updates and maintenance
   
700
     
560
     
1,932
     
1,535
 
   Research and development
   
4,383
     
2,993
     
11,981
     
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
 
   Selling and marketing
   
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
 
 

 
©2017 Check Point Software Technologies Ltd.
All rights reserved         |         P.   7

 
CHECK POINT SOFTWARE TECHNOLOGIES LTD.
CONDENSED CONSOLIDATED BALANCE SHEET DATA
(In thousands)

ASSETS
 
   
September 30,
   
December 31,
 
   
2017
   
2016
 
   
(unaudited)
   
(audited)
 
Current assets:
           
Cash and cash equivalents
 
$
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
 
                 
Long-term assets:
               
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
 

LIABILITIES AND
SHAREHOLDERS’ EQUITY
 
Current liabilities:
           
Deferred revenues
 
$
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
   
3,591,417
     
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
 
 
 

©2017 Check Point Software Technologies Ltd.
All rights reserved         |         P.   8


CHECK POINT SOFTWARE TECHNOLOGIES LTD.
SELECTED CONSOLIDATED CASH FLOW DATA
(In thousands)
 
   
Three Months Ended
   
Nine Months Ended
 
   
September 30,
   
September 30,
 
   
2017
   
2016
   
2017
   
2016
 
   
(unaudited)
   
(unaudited)
   
(unaudited)
   
(unaudited)
 
Cash flow from operating activities:
                       
Net income
 
$
192,702
   
$
169,652
   
$
563,615
   
$
502,893
 
Adjustments to reconcile net income to net cash provided by operating activities:
                               
Depreciation of property and equipment
   
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
 
Increase (decrease) in deferred revenues, trade payables and other accrued liabilities (*)
   
(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
 
Payments related to shares withheld for taxes (*)
   
(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
 

(*) Payments related to shares withheld for taxes during the three and nine month periods ending September 30, 2017 were reclassified from operating activity to financing activity following ASU 2016-09 adoption.
 

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All rights reserved         |         P.   9
 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly organized.
 
CHECK POINT SOFTWARE TECHNOLOGIES LTD.
 
/s/ Tal Payne
Tal Payne
Chief Financial Officer
Date: October 31, 2017
 
©2017 Check Point Software Technologies Ltd.
All rights reserved         |         P.   10