CHECK POINT SOFTWARE TECHNOLOGIES LTD.
(Translation of registrant's name into English)
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5 Ha’solelim Street, Tel Aviv, Israel
(Address of principal executive offices)
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Investors: Kip E. Meintzer
Check Point Software Technologies
+1.650.628.2040
ir@checkpoint.com
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Media: Gil Messing
Check Point Software Technologies
+1.650.628.2260
press@checkpoint.com
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Total Revenues: $566 million, a 4 percent increase year over year
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• |
Security Subscription Revenues: $228 million, a 13 percent increase year over year
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• |
Deferred Revenues: $1,797 million, an 8 percent increase year over year
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• |
GAAP Operating Income: $200 million, representing 35 percent of total revenues
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• |
Non-GAAP Operating Income: $238 million, representing 42 percent of total revenues
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• |
GAAP EPS: $1.52, a 17 percent increase year over year
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• |
Non-GAAP EPS: $1.80, a 15 percent increase year over year
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• |
Total Revenues: $566 million compared to $543
million in the first quarter of 2022, a 4 percent increase year over year.
|
• |
GAAP Operating Income: $200 million same as in
the first quarter of 2022, representing 35 percent and 37 percent of total revenues in the first quarter of 2023 and 2022, respectively.
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• |
Non-GAAP Operating Income: $238 million compared
to $239 million in the first quarter of 2022, representing 42 percent and 44 percent of total revenues in the first quarter of 2023 and 2022, respectively.
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• |
GAAP Taxes on Income: $35 million compared to $38
million in the first quarter of 2022.
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• |
GAAP Net Income & Earnings per Diluted share: GAAP
net income was $184 million compared to $169 million in the first quarter of 2022. GAAP earnings per diluted share were $1.52 compared to $1.30 in the first quarter of 2022, a 17 percent increase year over year.
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Non-GAAP Net Income & Earnings per Diluted share: Non-GAAP net income was $218 million compared to $204 million in the first quarter of 2022. Non-GAAP earnings per diluted share were $1.80 compared to $1.57 in the first quarter of 2022, a 15 percent increase year over
year.
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• |
Deferred Revenues: As of March 31, 2023, deferred
revenues were $1,797 million compared to $1,666 million as of March 31, 2022, an 8 percent increase year over year.
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• |
Cash Balances, Marketable Securities & Short-Term Deposits: $3,619 million as of March 31, 2023, compared to $3,503 million as of December 31, 2022.
|
• |
Cash Flow: Cash flow from operations of $386
million compared to $398 million in the first quarter of 2022.
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Share Repurchase Program: During the first quarter
of 2023, the company repurchased approximately 2.6 million shares at a total cost of approximately $325 million.
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J.P. Morgan 51st Annual Technology,
Media, and Telecom Conference
May 22-24, 2023, Boston, MA – 1x1’s |
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Cowen 51st Annual TMT Conference
May 31-June 1, 2023, NY, NY – Fireside Chat & 1x1’s |
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Bank of America Merrill Lynch 2023 Global Technology Conference
June 6-8, 2023, SF, CA – Fireside Chat & 1x1’s |
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Nasdaq Investor Conference
June 13, 2023, London, UK – 1x1’s |
Three Months Ended
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||||||||
March 31,
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||||||||
2023
|
2022
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|||||||
Revenues:
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||||||||
Products and licenses
|
$
|
108.0
|
$
|
115.9
|
||||
Security subscriptions
|
228.2
|
201.6
|
||||||
Total revenues from products and security subscriptions
|
336.2
|
317.5
|
||||||
Software updates and maintenance
|
230.0
|
225.2
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||||||
Total revenues
|
566.2
|
542.7
|
||||||
Cost of products and licenses
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26.2
|
31.4
|
||||||
Cost of security subscriptions
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12.3
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10.0
|
||||||
Total cost of products and security subscriptions
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38.5
|
41.4
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||||||
Cost of Software updates and
maintenance
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26.8
|
25.5
|
||||||
Amortization of technology
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2.8
|
3.2
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||||||
Total cost of revenues
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68.1
|
70.1
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||||||
Research and development
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91.5
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86.5
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||||||
Selling and marketing
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177.7
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158.6
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||||||
General and administrative
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29.1
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27.3
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||||||
Total operating expenses
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366.4
|
342.5
|
||||||
Operating income
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199.8
|
200.2
|
||||||
Financial income, net
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19.1
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7.1
|
||||||
Income before taxes on income
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218.9
|
207.3
|
||||||
Taxes on income
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34.8
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37.9
|
||||||
Net income
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$
|
184.1
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$
|
169.4
|
||||
Basic earnings per share
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$
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1.54
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$
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1.32
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||||
Number of shares used in computing basic earnings per share
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119.8
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128.3
|
||||||
Diluted earnings per share
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$
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1.52
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$
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1.30
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||||
Number of shares used in computing diluted earnings per share
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121.1
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129.8
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Three Months Ended
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||||||||
March 31,
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||||||||
2023
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2022
|
|||||||
Revenues
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$
|
566.2
|
$
|
542.7
|
||||
Non-GAAP operating income
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238.4
|
238.6
|
||||||
Non-GAAP net income
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217.9
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203.6
|
||||||
Non-GAAP diluted earnings per share
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$
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1.80
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$
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1.57
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||||
Number of shares used in computing diluted
Non-GAAP earnings per share
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121.1
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129.8
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Three Months Ended
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||||||||
March 31,
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||||||||
2023
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2022
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|||||||
GAAP operating income
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$
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199.8
|
$
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200.2
|
||||
Stock-based compensation (1)
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32.7
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32.4
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||||||
Amortization of intangible assets and acquisition related expenses (2)
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5.9
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6.0
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||||||
Non-GAAP operating income
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$
|
238.4
|
$
|
238.6
|
||||
GAAP net income
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$
|
184.1
|
$
|
169.4
|
||||
Stock-based compensation (1)
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32.7
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32.4
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||||||
Amortization of intangible assets and acquisition related expenses (2)
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5.9
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6.0
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||||||
Taxes on the above items (3)
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(4.8
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)
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(4.2
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)
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||||
Non-GAAP net income
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$
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217.9
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$
|
203.6
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||||
GAAP diluted earnings per share
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$
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1.52
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$
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1.30
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||||
Stock-based compensation (1)
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0.27
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0.25
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||||||
Amortization of intangible assets and acquisition related expenses (2)
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0.05
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0.05
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||||||
Taxes on the above items (3)
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(0.04
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)
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(0.03
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)
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||||
Non-GAAP diluted earnings per share
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$
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1.80
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$
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1.57
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||||
Number of shares used in computing diluted Non-GAAP earnings per share
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121.1
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129.8
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||||||
(1) Stock-based compensation:
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||||||||
Cost of products and licenses
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$
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0.1
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$
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0.1
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||||
Cost of software updates and maintenance
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1.2
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1.0
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||||||
Research and development
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10.6
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10.5
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||||||
Selling and marketing
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11.3
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11.1
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||||||
General and administrative
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9.5
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9.7
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||||||
32.7
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32.4
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|||||||
(2) Amortization of intangible assets and acquisition related expenses:
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||||||||
Amortization of technology-cost of revenues
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2.8
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3.2
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||||||
Research and development
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1.9
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2.0
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||||||
Selling and marketing
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1.2
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0.8
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||||||
5.9
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6.0
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|||||||
(3) Taxes on the above items
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(4.8
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)
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(4.2
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)
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Total, net
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$
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33.8
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$
|
34.2
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March 31,
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December 31,
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|||||||
2023
(Unaudited)
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2022
(Audited)
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|||||||
Current assets:
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||||||||
Cash and cash equivalents
|
$
|
275.7
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$
|
196.0
|
||||
Marketable securities and short-term deposits
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1,410.7
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1,441.6
|
||||||
Trade receivables, net
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355.5
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644.2
|
||||||
Prepaid expenses and other current assets
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54.8
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50.0
|
||||||
Total current assets
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2,096.7
|
2,331.8
|
||||||
Long-term assets:
|
||||||||
Marketable securities
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1,933.0
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1,865.6
|
||||||
Property and equipment, net
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80.1
|
82.8
|
||||||
Deferred tax asset, net
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71.5
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77.6
|
||||||
Goodwill and other intangible assets, net
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1,292.2
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1,295.5
|
||||||
Other assets
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70.7
|
71.5
|
||||||
Total long-term assets
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3,447.5
|
3,393.0
|
||||||
Total assets
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$
|
5,544.2
|
$
|
5,724.8
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Current liabilities:
|
||||||||
Deferred revenues
|
$
|
1,315.1
|
$
|
1,363.4
|
||||
Trade payables and other accrued liabilities
|
438.1
|
475.8
|
||||||
Total current liabilities
|
1,753.2
|
1,839.2
|
||||||
Long-term liabilities:
|
||||||||
Long-term deferred revenues
|
481.8
|
514.4
|
||||||
Income tax accrual
|
416.7
|
419.7
|
||||||
Other long-term liabilities
|
21.0
|
22.2
|
||||||
919.5
|
956.3
|
|||||||
Total liabilities
|
2,672.7
|
2,795.5
|
||||||
Shareholders’ equity:
|
||||||||
Share capital
|
0.8
|
0.8
|
||||||
Additional paid-in capital
|
2,554.3
|
2,500.7
|
||||||
Treasury shares at cost
|
(12,113.8
|
)
|
(11,802.1
|
)
|
||||
Accumulated other comprehensive gain
|
(81.7
|
)
|
(97.9
|
)
|
||||
Retained earnings
|
12,511.9
|
12,327.8
|
||||||
Total shareholders’ equity
|
2,871.5
|
2,929.3
|
||||||
Total liabilities and shareholders’ equity
|
$
|
5,544.2
|
$
|
5,724.8
|
||||
Total cash and cash equivalents, marketable securities, and short-term deposits
|
$
|
3,619.4
|
$
|
3,503.2
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2023
|
2022
|
|||||||
Cash flow from operating activities:
|
||||||||
Net income
|
$
|
184.1
|
$
|
169.4
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation of property and equipment
|
6.9
|
5.0
|
||||||
Amortization of intangible assets
|
3.3
|
3.3
|
||||||
Stock-based compensation
|
32.7
|
32.4
|
||||||
Decrease in trade and other receivables, net
|
285.1
|
253.4
|
||||||
Decrease in deferred revenues, trade payables and other accrued liabilities
|
(127.1
|
)
|
(66.8
|
)
|
||||
Deferred income taxes, net
|
0.6
|
1.3
|
||||||
Net cash provided by operating activities
|
385.6
|
398.0
|
||||||
Cash flow from investing activities:
|
||||||||
Payment in conjunction with acquisitions, net of acquired cash
|
-
|
(48.3
|
)
|
|||||
Investment in property and equipment
|
(4.2
|
)
|
(4.7
|
)
|
||||
Net cash used in investing activities
|
(4.2
|
)
|
(53.0
|
)
|
||||
Cash flow from financing activities:
|
||||||||
Proceeds from issuance of shares upon exercise of options
|
34.1
|
66.9
|
||||||
Purchase of treasury shares
|
(324.9
|
)
|
(325.0
|
)
|
||||
Payments related to shares withheld for taxes
|
(1.0
|
)
|
(0.7
|
)
|
||||
Net cash used in financing activities
|
(291.8
|
)
|
(258.8
|
)
|
||||
Unrealized gain (loss) on marketable securities, net
|
26.6
|
(69.3
|
)
|
|||||
Increase in cash and cash equivalents, marketable securities, and short-term deposits
|
116.2
|
16.9
|
||||||
Cash and cash equivalents, marketable securities, and short-term deposits at the beginning of the period
|
3,503.2
|
3,783.4
|
||||||
Cash and cash equivalents, marketable securities, and short-term deposits at the end of the period
|
$
|
3,619.4
|
$
|
3,800.3
|
CHECK POINT SOFTWARE TECHNOLOGIES LTD.
|
|
By: /s/ Roei Golan
Roei Golan
Acting Chief Financial Officer
|