Check Point® Software Technologies Ltd. (NASDAQ:CHKP), the
worldwide leader in securing the Internet, today announced its
financial results for the second quarter ending June 30, 2014.
- Total Revenue: $363 million,
representing a 7 percent increase year over year
- Non-GAAP Operating Income: $207
million, representing 57 percent of revenues
- Non-GAAP EPS: $0.89, representing an 8
percent increase year over year
- Deferred Revenues: $660 million,
representing a 14 percent increase year over year
“We had a fantastic second quarter. Total revenues from products
and software blades subscription delivered 10 percent growth, which
was driven by strong demand across industries and business
segments. We saw a nice up-tick in customer wins across the board
with several very large customer contracts,” said Gil Shwed,
founder, chairman, and chief executive officer of Check Point
Software Technologies.
Financial Highlights for the Second Quarter of 2014:
- Total Revenue: $363 million
compared to $340 million in the second quarter of 2013.
- GAAP Operating Income: $190
million compared to $183 million in the second quarter of
2013.
- Non-GAAP Operating Income: $207
million compared to $198 million in the second quarter of 2013.
Non-GAAP operating margin was 57 percent, compared to 58 percent in
the second quarter of 2013.
- GAAP Net Income and Earnings per
Diluted Share: GAAP net income was $160 million compared to
$151 million in the second quarter of 2013. GAAP earnings per
diluted share were $0.83 compared to $0.76 in the second quarter of
2013.
- Non-GAAP Net Income and Earnings per
Diluted Share: Non-GAAP net income was $172 million compared to
$165 million in the second quarter of 2013. Non-GAAP earnings per
diluted share were $0.89 compared to $0.83 in the second quarter of
2013.
- Deferred Revenues: As of June
30, 2014, deferred revenues were $660 million compared to $580
million as of June 30, 2013.
- Cash Flow: Cash flow from
operations was $168 million compared to $205 million in the second
quarter of 2013.
- Share Repurchase Program: During
the second quarter of 2014, the company repurchased 3.0 million
shares at a total cost of $194 million.
- Cash Balances, Marketable Securities
and Short Term Deposits: $3,643 million as of June 30, 2014, an
increase of $72 million, compared to $3,571 million as of June 30,
2013.
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.”
Business Highlights
During the second quarter of 2014, Check Point launched new
products and services, including:
41000 Security System – New datacenter and telco grade
high performance system based on the multi-blade hardware
architecture of the 61000. The 41000 has a smaller footprint,
enabling more customers to deploy high performance scalable
security. The 41000 delivers performance of up to 11,000
SecurityPower™ units (SPU), 40 Gbps of real-life firewall
throughput, and 25 Gbps of real-life IPS throughput.
Smart-1 Appliance Family – Upgraded the entire line of
the Smart-1 security management appliance family with five new
appliances that deliver cyber security management for the era of
big data. Smart-1 appliances enable organizations to consolidate
security policy, log, and event management. The new Smart-1
Appliances allow for three times more effective storage capacity
and report generation is greatly accelerated.
Next-Generation SmartEvent – Announced the availability
of Next-Generation SmartEvent, a new and powerful event monitoring
solution for real-time processing and storing of threat detection
data. Next-Generation SmartEvent offers one single view for all
security threats and network components, to more easily manage and
analyze big data security, and to make faster and more informed
security decisions.
ThreatCloud IntelliStore – The ThreatCloud IntelliStore
provides a threat intelligence marketplace that enables
organizations to select from a wide range of threat intelligence
feeds relevant to them and simultaneously uses this intelligence to
proactively stop threats at their Check Point Security
Gateways.
Check Point 2014 Security Report – We published our
annual industry security report which provides insight into the
major security events that occurred in organizations across the
world and offers recommendations on how to protect against them.
The report is based on collaborative research from our Security
Checkup assessments, Threat Emulation sensors, ThreatCloud™ and
Endpoint Security reports, and includes in-depth analysis of
200,000+ hours of monitored network traffic from over 9,000
security gateways across 996 organizations of various industries
worldwide. The report is available at
http://www.checkpoint.com/securityreport.
Industry Accolades:
Leader in the Gartner Magic Quadrant for Enterprise Network
Firewall - Check Point is positioned as a Leader in the Gartner
Magic Quadrant for Enterprise Network Firewall. The company has
been in the Leaders quadrant since 1999.
Top Position in Worldwide Combined Firewall and UTM Appliance
Market - Check Point continued to be the number one vendor
in worldwide combined Firewall and UTM appliance revenue for Q1
2014, according to the IDC Worldwide Quarterly Security Appliance
Tracker Q1 2014.
“We’ve continued to innovate and expand our offerings this
quarter with the introduction of our ThreatCloud IntelliStore,
which provides customers access to the industry’s best cyber
intelligence sources and translates it into real-time prevention.
This is the latest layer in our Threat Prevention solution that
includes our Intrusion Prevention (IPS), Network Anti-Virus, Web
Security, Anti-bot and Threat Emulation,” concluded Shwed.
Third Quarter 2014 Investor Conference Participation
Schedule:
- Needham 2014 Software and Services
ConferenceAugust 5, 2014 – New York, NY
- Pacific Crest 16th
Annual Global Technology Leadership ForumAugust 12, 2014 –
Vail, CO
- Citi 2014 Technology
ConferenceSeptember 2, 2014 – New York, NY
- Deutsche Bank 2014 dbAccess
Technology ConferenceSeptember 9, 2014 – Las Vegas, NV
Members of Check Point's management team will 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 July 23, 2014 at 8:30 AM ET/5:30 AM 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 August 1, 2014 on the company's website or by
telephone at +1.201.612.7415, replay ID number 13586646.
About Check Point Software Technologies Ltd.
Check Point Software Technologies Ltd. (www.checkpoint.com), the
worldwide leader in securing the Internet, is the only vendor to
deliver Total Security for networks, data and endpoints,
unified under a single management framework. Check Point
provides customers with uncompromised protection against all types
of threats, reduces security complexity and lowers total cost of
ownership. Check Point first pioneered the industry with FireWall-1
and its patented stateful inspection technology. Today, Check Point
continues to innovate with the development of the Software Blade
Architecture™. The dynamic Software Blade Architecture delivers
secure, flexible and simple solutions that can be fully customized
to meet the exact security needs of any organization or
environment. Check Point customers include tens of thousands of
businesses and organizations of all sizes including all Fortune 100
companies. Check Point's award-winning ZoneAlarm solutions
protect millions of consumers from hackers, spyware and identity
theft.
©2014 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 for software-defined protection,
Next-Generation SmartEvent and our other new solutions, and our
expectations regarding our collaboration with VMware to automate
and simplify the provisioning and deployment of network security in
private clouds. Our expectations and beliefs regarding these
matters may not materialize, and actual results in future periods
are subject to risks and uncertainties that could cause actual
results 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 March 28, 2014. 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 net income, operating income, operating margin
and earnings per share, which are adjustments from results based on
GAAP to exclude stock-based compensation charges, amortization of
intangible assets 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.
CHECK POINT SOFTWARE TECHNOLOGIES LTD.
CONSOLIDATED STATEMENT OF
INCOME
(In thousands, except per share
amounts)
Three Months Ended Six Months Ended
June 30, June 30, 2014 2013 2014 2013 (unaudited)
(unaudited) (unaudited) (unaudited) Revenues: Products and licenses
$124,342 $119,252 $232,281 $224,445 Software Blades subscriptions
63,743 52,350 125,500 101,504 Total revenues from products and
software blades
188,085
171,602
357,781
325,949
Software updates and maintenance 174,513 168,570 347,023 336,953
Total revenues 362,598 340,172 704,804 662,902 Operating
expenses: Cost of products and licenses 22,353 20,916 42,413 39,765
Cost of software blades subscriptions
1,092
1,240
2,602
2,846
Total cost of products and software blades
23,445
22,156
45,015
42,611
Cost of Software updates and maintenance
17,506
16,959
34,754
33,207
Amortization of technology 60 198 120 492 Total cost of revenues
41,011 39,313 79,889 76,310 Research and development 33,451
29,369 66,417 58,683 Selling and marketing 79,821 70,481 148,435
132,310 General and administrative 18,394 17,719 35,644 35,305
Total operating expenses 172,677 156,882 330,385 302,608
Operating income 189,921 183,290 374,419 360,294 Financial income,
net 7,298 7,608 14,447 16,450 Income before taxes on income 197,219
190,898 388,866 376,744 Taxes on income 37,563 39,890 76,125 77,776
Net income $159,656 $151,008 $312,741 $298,968
Earnings per share (basic)
$0.84
$0.77
$1.64
$1.51
Number of shares used in computing earnings per share (basic)
189,933
196,387
190,972
197,418
Earnings per share (diluted)
$0.83
$0.76
$1.61
$1.49
Number of shares used in computing earnings per share (diluted)
193,380
199,946
194,566
201,265
CHECK POINT SOFTWARE TECHNOLOGIES LTD.
RECONCILIATION OF GAAP TO NON GAAP FINANCIAL INFORMATION
(In thousands, except per share
amounts)
Three Months Ended Six Months Ended June 30,
June 30,
2014 2013 2014 2013 (unaudited) (unaudited)
(unaudited) (unaudited) GAAP operating income $189,921
$183,290 $374,419 $360,294 Stock-based compensation (1) 16,587
13,752 29,058 24,922 Amortization of intangible assets (2) 535
826 1,070 1,748 Non-GAAP operating
income $207,043 $197,868 $404,547 $386,964
GAAP net income $159,656 $151,008 $312,741 $298,968
Stock-based compensation (1) 16,587 13,752 29,058 24,922
Amortization of intangible assets (2) 535 826 1,070 1,748 Taxes on
the above items (3) (4,679 ) (551 ) (6,868 ) (1,311 ) Non-GAAP net
income $172,099 $165,035 $336,001 $324,327
GAAP Earnings per share (diluted) $0.83 $0.76 $1.61
$1.49 Stock-based compensation (1) 0.08 0.07 0.15 0.12 Amortization
of intangible assets (2) - 0.01 0.01 0.01 Taxes on the above items
(3) (0.02 ) (0.01 ) (0.04 ) (0.01 ) Non-GAAP Earnings per share
(diluted) $0.89 $0.83 $1.73 $1.61
Number of shares used in computing Non-GAAP earnings per
share (diluted) 193,380 199,946 194,566
201,265 (1) Stock-based compensation: Cost of
products and licenses $22 $23 $38 $41 Cost of software updates and
maintenance 240 249 425 448 Research and development 2,661 2,802
4,754 4,789 Selling and marketing 3,874 3,312 6,202 5,572 General
and administrative 9,790 7,366 17,639 14,072
$16,587 $13,752 $29,058 $24,922
(2) Amortization of intangible assets: Amortization of
technology-cost of revenues 60 198 120 492 Selling and marketing
475 628 950 1,256 $535 $826
$1,070 $1,748
(3) Taxes on the above items
$ (4,679 ) $ (551 ) $ (6,868 ) $ (1,311 )
Total, net
$12,443 $14,027 $23,260 $25,359
CHECK POINT SOFTWARE TECHNOLOGIES LTD. CONDENSED
CONSOLIDATED BALANCE SHEET DATA
(In thousands)
ASSETS June 30, December 31,
2014 2013 (unaudited) (audited) Current assets: Cash and cash
equivalents $317,544 $408,432 Marketable securities and short-term
deposits 915,977 758,382 Trade receivables, net 245,432 379,648
Prepaid expenses and other current assets 59,907 53,856
Total current assets 1,538,860 1,600,318
Long-term assets: Marketable securities 2,409,263 2,463,110
Property and equipment, net 38,083 37,991 Severance pay fund 6,479
6,488 Deferred tax asset, net 16,476 13,557 Other intangible
assets, net 15,120 16,191 Goodwill 727,875 727,875 Other assets
19,865 20,907 Total long-term assets 3,233,161
3,286,119 Total assets 4,772,021 $4,886,437
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities: Deferred revenues $565,188 $586,696 Trade
payables and other accrued liabilities 251,228 396,102
Total current liabilities 816,416 982,798
Long-term liabilities: Long-term deferred revenues 94,958
84,927 Income tax accrual 227,028 205,420 Deferred tax liability,
net 636 308 Accrued severance pay 11,071 10,887
333,693 301,542 Total liabilities 1,150,109
1,284,340 Shareholders’ equity: Share capital
774 774 Additional paid-in capital 811,711 774,917 Treasury shares
at cost (2,757,415 ) (2,421,278 ) Accumulated other comprehensive
income 8,256 1,839 Retained earnings 5,558,586 5,245,845
Total shareholders’ equity 3,621,912 3,602,097
Total liabilities and shareholders’
equity
$4,772,021
$4,886,437
Total cash and cash equivalents, marketable securities and
short-term deposits
$3,642,784
$3,629,924
CHECK POINT SOFTWARE TECHNOLOGIES LTD.
SELECTED CONSOLIDATED CASH FLOW DATA
(In thousands)
Three Months Ended Six Months Ended June 30,
June 30, 2014 2013 2014 2013 (unaudited)
(unaudited) (unaudited) (unaudited)
Cash flow from operating
activities: Net income $159,656 $151,008 $312,741 $298,968
Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation of property and equipment
2,248
2,081
4,439 4,097 Amortization of intangible assets 535 826 1,070 1,748
Stock-based compensation 16,587 13,752 29,058 24,922 Realized gain
on marketable securities (143 ) 40 (154 ) (1,074 ) Decrease
(increase) in trade and other receivables, net (15,128 ) 10,875
130,015 105,251 Increase (decrease) in deferred revenues, trade
payables and other accrued liabilities
11,594
29,065
(129,500 ) 112,561 Excess tax benefit from stock-based compensation
(2,674 ) (1,934 ) (1,952 ) (6,105 ) Deferred income taxes, net
(4,703 ) (1,054 ) (5,687 ) (4,267 )
Net cash provided by
operating activities 167,972 204,659 340,030
536,101
Cash flow from investing
activities: Investment in property and equipment (2,328
) (2,044 ) (4,531 ) (4,626 )
Net cash used in investing
activities (2,328 ) (2,044 ) (4,531 ) (4,626 )
Cash
flow from financing activities: Proceeds from issuance of
shares upon exercise of options
-
6,785
47,418
33,430
Purchase of treasury shares (194,000 ) (142,797 ) (380,869 )
(274,434 ) Excess tax benefit from stock-based compensation 2,674
1,934 1,952 6,105
Net cash used in
financing activities (191,326 ) (134,078 ) (331,499 ) (234,899
) Unrealized gain (loss) on marketable securities, net 6,272
(21,276 ) 8,860 (21,288 ) Increase in cash and
cash equivalents, marketable securities and short term deposits
(19,410
)
47,261
12,860
275,288
Cash and cash equivalents, marketable securities and short
term deposits at the beginning of the period
3,662,194
3,523,391
3,629,924
3,295,364
Cash and cash equivalents, marketable securities
and short term deposits at the end of the period
$3,642,784
$3,570,652
$3,642,784
$3,570,652
Check Point Software TechnologiesINVESTOR CONTACT:Kip E.
Meintzer, +1-650-628-2040ir@checkpoint.comMEDIA
CONTACT:James Rivas, +1-650-628-2215press@checkpoint.com
Check Point Software Tec... (NASDAQ:CHKP)
Historical Stock Chart
From Mar 2024 to Apr 2024
Check Point Software Tec... (NASDAQ:CHKP)
Historical Stock Chart
From Apr 2023 to Apr 2024