Check Point® Software Technologies Ltd. (NASDAQ: CHKP), today
announced its financial results for the fourth quarter and full
year ended December 31, 2019.
Fourth Quarter
2019
- Total Revenues: $544 million, a 3 percent increase year over
year
- GAAP Operating Income: $249 million, representing 46 percent of
revenues
- Non-GAAP Operating Income: $280 million, representing 51
percent of revenues
- GAAP EPS: $1.84, a 21 percent increase year over year
- Non-GAAP EPS: $2.02, a 21 percent increase year over year
Full Year 2019
- Total Revenues: $1,995 million, a 4 percent increase year over
year
- GAAP EPS: $5.43, a 5 percent increase year over year
- Non-GAAP EPS: $6.13, a 7 percent increase year over year
“We closed out the last decade with nearly two billion dollars
in annual revenues and over one billion dollars in non-GAAP
operating income. Over the last decade we introduced our
security-as-a-service subscription model, which delivers the most
advanced technologies in cyber. In 2019, subscription reached
over six hundred million dollars in revenues and was driven by
cloud, mobile and zero-day advanced threat prevention
technologies,” said Gil Shwed, Founder and CEO of Check Point
Software Technologies. “We began the new decade with the
introduction of Infinity NEXT, the industry’s most comprehensive
cyber security platform with over 60 security technologies that
support over 50 types of assets including operating systems, cloud
workloads, IoT devices, mobile devices and network of any type,”
Shwed concluded.
Financial Highlights for the
Fourth Quarter of 2019
- Total Revenues: $544 million compared to $526
million in the fourth quarter of 2018, a 3 percent increase year
over year.
- GAAP Operating Income: $249
million compared to $250 million in the fourth quarter of 2018,
representing 46 percent and 48 percent of revenues in the fourth
quarter of 2019 and 2018, respectively.
- Non-GAAP Operating Income: $280 million
compared to $279 million in the fourth quarter of 2018,
representing 51 percent and 53 percent of revenues in the fourth
quarter of 2019 and 2018, respectively.
- GAAP Taxes on income (tax
benefit): $3.1 million tax benefit compared to $29 million
tax expenses in the fourth quarter of 2018.
- GAAP Net Income & Earnings per Diluted
Share: GAAP net income was $272 million compared to $238
million in the fourth quarter of 2018. GAAP earnings per diluted
share were $1.84 compared to $1.51 in the fourth quarter of 2018, a
21 percent increase year over year.
- Non-GAAP Net Income & Earnings per Diluted
Share: Non-GAAP net income was $299 million compared to
$264 million in the fourth quarter of 2018. Non-GAAP earnings
per diluted share were $2.02 compared to $1.68 in the fourth
quarter of 2018, a 21 percent increase year over year.
- Deferred Revenues: As of December 31, 2019,
deferred revenues were $1,387 million compared to $1,338 million as
of December 31, 2018, a 4 percent increase year over year.
- Cash Balances, Marketable Securities & Short Term
Deposits: $3,949 million as of December 31, 2019, compared
to $4,039 million as of December 31, 2018.
- Cash Flow: Cash flow from operations of $246
million compared to $249 million in the fourth quarter of
2018.
- Share Repurchase Program:
During the fourth quarter of 2019, the company repurchased
approximately 2.9 million shares at a total cost of approximately
$325 million. Today, we announced a $2 billion extension to the
share repurchase program with authorization to repurchase up to
$325 million each quarter.
Financial Highlights for the Year Ended December 31,
2019
- Total Revenues: $1,995 million compared to
$1,916 million in 2018, a 4 percent increase year over year.
- GAAP Operating Income: $882 million compared
to $914 million in 2018, representing 44 percent and 48 percent of
revenues in 2019 and 2018, respectively.
- Non-GAAP Operating Income: $1,003 million
compared to $1,015 million in 2018, representing 50 percent and 53
percent of revenues in 2019 and 2018, respectively.
- GAAP Taxes on Income: $137 million compared to
$158 million in 2018.
- GAAP Net Income and Earnings per Diluted
Share: GAAP net income was $826 million compared to $821
million in 2018. GAAP earnings per diluted share were $5.43
compared to $5.15 in 2018, a 5 percent increase year over
year.
- Non-GAAP Net Income and Earnings per Diluted
Share: Non-GAAP net income was $933 million compared to
$911 million in 2018. Non-GAAP earnings per diluted share
were $6.13 compared to $5.71 in 2018, a 7 percent increase year
over year.
- Cash Flow: Cash flow from operations of $1,102
million compared to $1,130 million in 2018.
- Share Repurchase Program: During 2019, we
purchased approximately 11.2 million shares at a total cost of
approximately $1,278 million.
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.”
Check Point business highlights includes key
announcements for 2019 to date addressing architecture, network
security, threat prevention, cloud, workload and IOT
security. Consolidated Security
Architecture
Infinity NEXT Infinity NEXT is the industry’s
most complete, consolidated security architecture. Infinity NEXT
utilizes cloud native architecture and is designed to protect any
asset, anywhere via innovative Nano Agent technology and
a full spectrum of over 60 adaptive threat prevention security
practices delivered as a service.
Network Security
R80.40 Software R80 is the industry’s most advanced threat
prevention and security management software for data centers,
cloud, mobile, endpoint and IoT. The new R80.40 software has over
100 new features, including inspection of SSH and HTTP/2 protocols,
optimal CPU utilization based on dynamic workloads technology,
zero-touch deployment for new appliances, and IoT policy and
enforcement.
Quantum Security Gateways The new Quantum Security Gateways
include six new Security Gateways which feature Check Point’s
ThreatCloud and SandBlast Zero-Day Protection. The new range
includes the 3600, 6200, 6600 and 6900 Quantum Security Gateways,
and the Check Point Maestro Gateways 16000 and 26000 Turbo
Hyperscale, which delivers 120Gbps of Gen V Threat Prevention
throughput.
Series 1500 Gateways – SMB SecurityNew series of small and
medium business appliances set new standards of protection against
the most advanced fifth-generation cyberattacks, and offer
unrivalled ease of deployment and management with up to two times
more performance from previous generations. The 1550 Gateway offers
450Mbps of threat prevention performance, and the 1590 Gateway
offers 660Mbps.
Maestro - Cloud Grade Elasticity & ResiliencyCheck Point
Maestro is a revolutionary new architecture that enables businesses
of any size to enjoy the power of cloud-grade elasticity and
resiliency in a security platform. Maestro enables seamless
expansion of existing security gateways to hyper scale capacity by
allowing businesses to expand from one gateway up to 52 gateways in
minutes and realize the performance of massive Terabits/second
firewall throughput.
CloudGuard Connect & Edge – SD-WAN Cloud delivered network
securityCheck Point CloudGuard
Connect and CloudGuard Edge deliver top-rated Threat
Prevention updated in real-time with the latest ThreatCloud
intelligence, flexibility to deploy branch office security in
minutes from the cloud or on-premise, seamless integration with
leading SD-WAN providers like VMware and Silver Peak, and a unified
threat and access management platform that can significantly reduce
operational expense.
Threat Prevention
Malware DNA - Artificial Intelligence-Based Malware Detection
EngineMalware DNA accelerates Zero-Day Threat Prevention. New
engine scans unknown malware for code patterns that match existing
known malware, further accelerating the identification and blocking
of previously undiscovered malware, and reducing response
times.
Highest Security Effectiveness Score - Second NSS Labs Breach
Prevention Systems Test NSS Labs tested Check Point’s Next Gen
Firewall Security Gateway, Threat
Prevention and Advanced Endpoint Security, earning the
solution a “Recommended” rating for its security effectiveness and
TCO per protected Mbps. The rating further validates Check Point’s
ongoing ability to protect organizations by preventing the most
advanced cyber-attacks.
SandBlast Mobile Recognized as Security Leader Check Point
achieved a 99% security rating in Miercom’s Mobile Threat Defense
(MTD) Industry Assessment for its solution, SandBlast Mobile,
surpassing all tested vendors’ solutions.
Cloud & Workload Security
CloudGuard Log.ic - Analytics Solution Exposes Unseen Cloud
ThreatsCloudGuard Log.ic provides threat protection and
context-rich security intelligence in the public cloud, enabling
operations teams to see every IaaS and PaaS asset, understand cloud
activities, and easily launch forensics.
Cloud Security Leadership Extended with Unmatched Serverless
ProtectionCheck Point announced a new Serverless security
technology. Check Point is first to market with a
consolidated security solution for cloud workload protection (CWPP)
and security posture management (CSPM), delivering continuous
serverless security with unmatched run time protection and
application hardening. Protego, an Israeli startup, provides a
serverless security technology that prevents malicious attacks on
serverless functions in run time, and prevents vulnerable code from
being deployed into production.
CloudGuard Exended with Fully-integrated Support for
KubernetesCheck Point delivers fully Integrated Cloud security for
Kubernetes - extended the capabilities of its CloudGuard cloud
security platform to support Kubernetes computing services,
including Amazon Elastic Kubernetes Service (Amazon EKS) and Amazon
Elastic Container Service (Amazon ECS). Customers can ensure that
their Kubernetes configurations continuously comply with
established container security baselines and secures traffic
between Kubernetes and on premise or cloud assets using IPsec
VPN
IOT
Revolutionizing IOT Cyber Security Check Point announced new IoT
cyber security technology. Check Point provides a
consolidated security solution that hardens and protects the
firmware of IoT devices and is designed to make them secure against
the most sophisticated attacks. The technology is provided through
the acquisition of Cymplify, a startup based in Tel Aviv. The
new technology will be integrated into Check Point’s Infinity
architecture.
Check Point Research
https://research.checkpoint.com uncovered numerous findings
that included WhatsApp, TikTok and Android Applications. We also
published new findings about malware families including multiple
types of Ransomware, malware on computers and mobile
devices.
Vulnerabilities in Applications &
Infrastructure
Web Conferencing Vulnerabilities Have you ever wondered if
someone can eavesdrop on your company’s meetings and learn the
details of your biggest secrets? Imagine a stranger sitting just
next to you in the same room, when you are discussing your “next
big thing.” In this publication we describe a technique which would
have allowed a threat actor to perform exactly that type of attack
over the Zoom web conferencing platform.
Don’t be silly, it’s only a lightbulb After
analyzing the security of ZigBee IoT devices, specifically the
smart hub that bridges between the IP and Zigbee network. By
masquerading as a legitimate Zigbee lightbulb, Check Point Research
was able to find and exploit vulnerabilities in the bridge that
enabled them to infiltrate the IP network using a remote
over-the-air ZigBee exploit.
AzureStack SSRF to Info Disclosure Check Point
Research discovered major flaws in Microsoft's popular cloud
platform that is intended to poke a hole in the (false) security
concept provided by the cloud providers.
Vulnerabilities in TikTok Our research revealed multiple
vulnerabilities in TikTok. The research found that an attacker
could send a spoofed SMS message to a user containing a malicious
link and that Tiktok's subdomain https://ads.tiktok.com was
vulnerable to XSS attacks. These vulnerabilities could have allowed
an attacker to manipulate content on a user’s account and even
extract confidential personal information saved on these
accounts.
WhatsApp Crash & Data Loss Bug Check Point Research found a
vulnerability in WhatsApp that could allow an attacker to deliver a
malicious group chat message that would crash the app and cause
data loss. To regain use of WhatsApp, users would need to uninstall
and reinstall it, then delete the group which contains the
message.
Vulnerabilities in Android Applications Discovered that multiple
applications on the Google Play store, including Facebook, are
vulnerable to very old vulnerabilities. The vulnerabilities could
potentially allow an attacker to steal data related to the app and
gain Android permissions which the app has access to such as a
user’s location.
Ransomware Research
DeCypherIT To evade detection, malware developers use packers to
encrypt their malicious crafts before releasing them to the wild.
Check Point Research discusses a case study where they were able to
decrypt a specific packer that is very popular among malware
developers. The developers of this packer offer it for sale on the
internet, and promise it is undetectable.
Incident Response Casefile – A successful BEC leveraging
lookalike domains Cyber criminals hacked a wire transfer between a
Chinese venture capital firm and an Israeli startup. After the
criminals hijacked a one million dollar wire transaction, Check
Point's Incidence Response Team investigated the case.
Phorpiex botnet The Phorpiex botnet is spread through exploit
kits and with the help of other malware, has infected more than
1,000,000 Windows computers. The annual criminal revenue generated
by Phorpiex botnet is approximately half a million US dollars.
In the Footsteps of a Sextortion Campaign Check Point Research
exposed a spam botnet, dubbed Phorpiex, which is responsible for a
large portion of the sextortion traffic seen in the wild. We
monitored the operation and recorded Bitcoin transfers to the
Phorpiex campaign wallets whose current value is over $110,000.
Eye on the Nile-a cyber-operation Check Point’s research team
uncovered an operation against civil rights activists, as well as
Amnesty members in Egypt. Following an initial report by Amnesty
International in March, CPR uncovered the scope and means of a
sophisticated attack allegedly linked to the Egyptian ministry and
government site.
Conference Call and Webcast Information Check
Point will host a conference call with the investment community on
February 3, 2020, at 8:30 AM ET/5:30 AM PT. To listen to the live
webcast or replay, please visit the website
www.checkpoint.com/ir.
First Quarter 2020 Investor Conference Participation
Schedule
- Goldman Sachs Technology & Internet Conference
2020 February 12, 2020 – San Francisco, CA
- Raymond James 2020 Institutional Investor
Conference March 2, 2020 – Orlando, FL
- Morgan Stanley 2020 Media, Telecommunications &
Technology Conference March 4, 2020 – San Francisco,
CA
- SunTrust Robinson Humphrey 2020 Technology, Internet
& Services Conference March 10, 2020 – New York,
NY
- Credit Suisse Investor Relations 1x1
Conference March 12, 2020 – New York, NY
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 hear 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.
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.
©2020 Check Point Software Technologies Ltd. All rights
reserved
Legal Notice Regarding Forward-Looking
StatementsThis 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, customer and
market acceptance of our products and solutions, and our
participation in investor conferences during the first quarter of
2020. 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; our ability to successfully integrate
and offer acquired products and services; 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 23, 2019. 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 or include certain items. 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
the 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(Unaudited, in millions,
except per share amounts)
|
Three Months Ended |
|
Year Ended |
|
December 31, |
|
December 31, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Revenues: |
|
|
|
|
|
|
|
Products and licenses |
$157.9 |
|
|
$160.6 |
|
$510.8 |
|
$525.6 |
Security subscriptions |
|
163.7 |
|
|
|
146.7 |
|
|
610.3 |
|
|
542.3 |
Total revenues from products
and security subscriptions |
|
321.6 |
|
|
|
307.3 |
|
|
1,121.1 |
|
|
1,067.9 |
Software updates and maintenance |
|
222.2 |
|
|
|
218.3 |
|
|
873.7 |
|
|
848.6 |
Total revenues |
|
543.8 |
|
|
|
525.6 |
|
|
1,994.8 |
|
|
1,916.5 |
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
Cost of products and licenses |
|
28.8 |
|
|
|
29.3 |
|
|
90.7 |
|
|
92.0 |
Cost of security subscriptions |
|
6.7 |
|
|
|
5.6 |
|
|
24.6 |
|
|
17.7 |
Total cost of products and
security subscriptions |
|
35.5 |
|
|
|
34.9 |
|
|
115.3 |
|
|
109.7 |
Cost of Software updates and maintenance |
|
24.7 |
|
|
|
23.2 |
|
|
94.5 |
|
|
88.9 |
Amortization of technology |
|
1.4 |
|
|
|
1.2 |
|
|
5.6 |
|
|
2.8 |
Total cost of revenues |
|
61.6 |
|
|
|
59.3 |
|
|
215.4 |
|
|
201.4 |
|
|
|
|
|
|
|
|
Research and development |
|
62.7 |
|
|
|
57.3 |
|
|
239.2 |
|
|
211.5 |
Selling and marketing |
|
141.5 |
|
|
|
132.5 |
|
|
552.7 |
|
|
500.9 |
General and administrative |
|
28.7 |
|
|
|
26.2 |
|
|
105.7 |
|
|
88.9 |
Total operating expenses |
|
294.5 |
|
|
|
275.3 |
|
|
1,113.0 |
|
|
1,002.7 |
|
|
|
|
|
|
|
|
Operating income |
|
249.3 |
|
|
|
250.3 |
|
|
881.8 |
|
|
913.8 |
Financial income, net |
|
19.9 |
|
|
|
16.6 |
|
|
80.6 |
|
|
65.1 |
Income before taxes on
income |
|
269.2 |
|
|
|
266.9 |
|
|
962.4 |
|
|
978.9 |
Taxes on income (tax
benefit) |
|
(3.1 |
) |
|
|
28.6 |
|
|
136.7 |
|
|
157.6 |
Net income |
$272.3 |
|
|
$238.3 |
|
$825.7 |
|
$821.3 |
Basic earnings per share |
$1.86 |
|
|
$1.53 |
|
$5.48 |
|
$5.24 |
Number of shares used in
computing basic earnings per share |
|
146.7 |
|
|
|
155.5 |
|
|
150.6 |
|
|
156.6 |
Diluted earnings per
share |
$1.84 |
|
|
$1.51 |
|
$5.43 |
|
$5.15 |
Number of shares used in
computing diluted earnings per share |
|
148.1 |
|
|
|
157.4 |
|
|
152.1 |
|
|
159.4 |
CHECK POINT SOFTWARE TECHNOLOGIES LTD.
SELECTED FINANCIAL METRICS(Unaudited, in millions, except
per share amounts)
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, |
|
December 31, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
Revenues |
|
$543.8 |
|
$525.6 |
|
$1,994.8 |
|
$1,916.5 |
Non-GAAP operating income |
|
|
279.7 |
|
|
279.2 |
|
|
1,002.8 |
|
|
1,015.0 |
Non-GAAP net income |
|
|
299.3 |
|
|
263.7 |
|
|
933.0 |
|
|
911.0 |
Diluted Non-GAAP Earnings per
share |
|
$2.02 |
|
$1.68 |
|
$6.13 |
|
$5.71 |
Number of shares used in
computing diluted Non-GAAP earnings per share |
|
|
148.1 |
|
|
157.4 |
|
|
152.1 |
|
|
159.4 |
CHECK POINT SOFTWARE TECHNOLOGIES
LTD.RECONCILIATION OF GAAP TO NON GAAP FINANCIAL
INFORMATION(Unaudited, in millions, except per share
amounts)
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, |
|
December 31, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
GAAP operating income |
|
$249.3 |
|
|
$250.3 |
|
|
$881.8 |
|
|
$913.8 |
|
Stock-based compensation (1) |
|
|
26.7 |
|
|
|
24.9 |
|
|
|
106.7 |
|
|
|
89.3 |
|
Amortization of intangible
assets and acquisition related expenses (2) |
|
|
3.7 |
|
|
|
4.0 |
|
|
|
14.3 |
|
|
|
11.9 |
|
Non-GAAP operating income |
|
$279.7 |
|
|
$279.2 |
|
|
$1,002.8 |
|
|
$1,015.0 |
|
|
|
|
|
|
|
|
|
|
GAAP net income |
|
$272.3 |
|
|
$238.3 |
|
|
$825.7 |
|
|
$821.3 |
|
Stock-based compensation
(1) |
|
|
26.7 |
|
|
|
24.9 |
|
|
|
106.7 |
|
|
|
89.3 |
|
Amortization of intangible
assets and acquisition related expenses (2) |
|
|
3.7 |
|
|
|
4.0 |
|
|
|
14.3 |
|
|
|
11.9 |
|
Taxes on the above items
(3) |
|
|
(3.4 |
) |
|
|
(3.5 |
) |
|
|
(13.7 |
) |
|
|
(11.5 |
) |
Non-GAAP net income |
|
$299.3 |
|
|
$263.7 |
|
|
$933.0 |
|
|
$911.0 |
|
|
|
|
|
|
|
|
|
|
Diluted GAAP Earnings per
share |
|
$1.84 |
|
|
$1.51 |
|
|
$5.43 |
|
|
$5.15 |
|
Stock-based compensation
(1) |
|
|
0.18 |
|
|
|
0.16 |
|
|
|
0.70 |
|
|
|
0.56 |
|
Amortization of intangible
assets and acquisition related expenses (2) |
|
|
0.02 |
|
|
|
0.03 |
|
|
|
0.10 |
|
|
|
0.07 |
|
Taxes on the above items
(3) |
|
|
(0.02 |
) |
|
|
(0.02 |
) |
|
|
(0.10 |
) |
|
|
(0.07 |
) |
Diluted Non-GAAP Earnings per
share |
|
$2.02 |
|
|
$1.68 |
|
|
$6.13 |
|
|
$5.71 |
|
|
|
|
|
|
|
|
|
|
Number of shares used in
computing diluted Non-GAAP earnings per share |
|
|
148.1 |
|
|
|
157.4 |
|
|
|
152.1 |
|
|
|
159.4 |
|
|
|
|
|
|
|
|
|
|
(1) Stock-based
compensation: |
|
|
|
|
|
|
|
|
Cost of products and licenses |
|
$0.1 |
|
|
$0.0 |
|
|
$0.2 |
|
|
$0.1 |
|
Cost of software updates and maintenance |
|
|
1.0 |
|
|
|
0.9 |
|
|
|
4.2 |
|
|
|
3.4 |
|
Research and development |
|
|
4.5 |
|
|
|
4.7 |
|
|
|
18.9 |
|
|
|
17.7 |
|
Selling and marketing |
|
|
8.0 |
|
|
|
5.9 |
|
|
|
28.8 |
|
|
|
20.8 |
|
General and administrative |
|
|
13.1 |
|
|
|
13.4 |
|
|
|
54.6 |
|
|
|
47.3 |
|
|
|
|
26.7 |
|
|
|
24.9 |
|
|
|
106.7 |
|
|
|
89.3 |
|
|
|
|
|
|
|
|
|
|
(2) Amortization of intangible
assets and acquisition related expenses: |
|
|
|
|
|
|
|
|
Amortization of technology-cost of revenues |
|
|
1.4 |
|
|
|
1.2 |
|
|
|
5.6 |
|
|
|
2.8 |
|
Research and development |
|
|
1.9 |
|
|
|
2.0 |
|
|
|
6.9 |
|
|
|
5.8 |
|
Selling and marketing |
|
|
0.4 |
|
|
|
0.8 |
|
|
|
1.8 |
|
|
|
3.3 |
|
|
|
|
3.7 |
|
|
|
4.0 |
|
|
|
14.3 |
|
|
|
11.9 |
|
(3) Taxes on the above
items |
|
|
(3.4 |
) |
|
|
(3.5 |
) |
|
|
(13.7 |
) |
|
|
(11.5 |
) |
Total, net |
|
$27.0 |
|
|
$25.4 |
|
|
$107.3 |
|
|
$89.7 |
|
CHECK POINT SOFTWARE TECHNOLOGIES
LTD.CONDENSED CONSOLIDATED BALANCE SHEET
DATA(Unaudited, in millions)
ASSETS
|
|
|
December 31, |
|
December 31, |
|
|
|
2019 |
|
2018 |
Current
assets: |
|
|
|
|
|
Cash and
cash equivalents |
|
|
$279.2 |
|
$303.6 |
Marketable securities and short-term deposits |
|
|
|
1,300.7 |
|
|
1,448.2 |
Trade receivables,
net |
|
|
|
495.8 |
|
|
495.4 |
Prepaid expenses and other
current assets |
|
|
|
58.5 |
|
|
74.7 |
Total current
assets |
|
|
|
2,134.2 |
|
|
2,321.9 |
|
|
|
|
|
|
Long-term
assets: |
|
|
|
|
|
Marketable
securities |
|
|
|
2,368.8 |
|
|
2,287.3 |
Property and
equipment, net |
|
|
|
87.7 |
|
|
78.5 |
Deferred tax
asset, net |
|
|
|
55.3 |
|
|
84.7 |
Goodwill and other
intangible assets, net |
|
|
|
1,024.7 |
|
|
991.5 |
Other assets |
|
|
|
94.2 |
|
|
64.3 |
Total long-term
assets |
|
|
|
3,630.7 |
|
|
3,506.3 |
|
|
|
|
|
|
Total assets |
|
|
$5,764.9 |
|
$5,828.2 |
LIABILITIES
ANDSHAREHOLDERS’ EQUITY
Current liabilities: |
|
|
|
|
|
Deferred revenues |
|
|
$1,011.9 |
|
|
$980.2 |
|
Trade payables and other accrued liabilities |
|
|
|
384.8 |
|
|
|
351.7 |
|
Total current liabilities |
|
|
|
1,396.7 |
|
|
|
1,331.9 |
|
|
|
|
|
|
|
Long-term liabilities: |
|
|
|
|
|
Long-term deferred revenues |
|
|
|
374.8 |
|
|
|
357.8 |
|
Income tax accrual |
|
|
|
393.3 |
|
|
|
356.7 |
|
Other long-term liabilities |
|
|
|
31.3 |
|
|
|
9.4 |
|
|
|
|
|
799.4 |
|
|
|
723.9 |
|
|
|
|
|
|
|
Total liabilities |
|
|
|
2,196.1 |
|
|
|
2,055.8 |
|
|
|
|
|
|
|
Shareholders’ equity: |
|
|
|
|
|
Share capital |
|
|
|
0.8 |
|
|
|
0.8 |
|
Additional paid-in capital |
|
|
|
1,770.3 |
|
|
|
1,597.8 |
|
Treasury shares at cost |
|
|
|
(8,092.7 |
) |
|
|
(6,844.7 |
) |
Accumulated other comprehensive
gain (loss) |
|
|
|
21.7 |
|
|
|
(24.5 |
) |
Retained earnings |
|
|
|
9,868.7 |
|
|
|
9,043.0 |
|
Total shareholders’ equity |
|
|
|
3,568.8 |
|
|
|
3,772.4 |
|
Total liabilities and
shareholders’ equity |
|
|
$5,764.9 |
|
|
$5,828.2 |
|
Total cash and cash equivalents,
marketable securities and short-term deposits |
|
|
$3,948.7 |
|
|
$4,039.1 |
|
CHECK POINT SOFTWARE TECHNOLOGIES
LTD.SELECTED CONSOLIDATED CASH FLOW
DATA(Unaudited, in millions)
|
Three Months Ended |
|
Year Ended |
|
December 31, |
|
December 31, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Cash flow from
operating activities: |
|
|
|
|
|
|
|
Net income |
$272.3 |
|
|
$238.3 |
|
|
$825.7 |
|
|
$821.3 |
|
Adjustments to reconcile net
income to net cash provided by operating activities: |
|
|
|
|
|
|
|
Depreciation of property and equipment |
|
5.0 |
|
|
|
4.1 |
|
|
|
16.7 |
|
|
|
16.4 |
|
Amortization of intangible
assets |
|
1.8 |
|
|
|
1.6 |
|
|
|
7.3 |
|
|
|
4.4 |
|
Stock-based compensation |
|
26.7 |
|
|
|
24.9 |
|
|
|
106.7 |
|
|
|
89.3 |
|
Realized loss (gain) on
marketable securities |
|
(0.7 |
) |
|
|
1.5 |
|
|
|
(0.5 |
) |
|
|
1.8 |
|
Decrease (increase) in trade
and other receivables, net |
|
(198.8 |
) |
|
|
(215.3 |
) |
|
|
21.0 |
|
|
|
(20.4 |
) |
Increase in deferred revenues,
trade payables and other accrued liabilities |
|
137.9 |
|
|
|
158.5 |
|
|
|
112.6 |
|
|
|
174.5 |
|
Deferred income taxes,
net |
|
2.2 |
|
|
|
35.5 |
|
|
|
12.8 |
|
|
|
42.8 |
|
Net cash provided
by operating activities |
|
246.4 |
|
|
|
249.1 |
|
|
|
1,102.3 |
|
|
|
1,130.1 |
|
|
|
|
|
|
|
|
|
Cash flow from
investing activities: |
|
|
|
|
|
|
|
Cash paid in conjunction with
acquisitions, net of acquired cash |
|
(32.5 |
) |
|
|
(154.9 |
) |
|
|
(37.6 |
) |
|
|
(154.9 |
) |
Investment in property and
equipment |
|
(5.8 |
) |
|
|
(4.0 |
) |
|
|
(25.9 |
) |
|
|
(17.1 |
) |
Net cash used in
investing activities |
|
(38.3 |
) |
|
|
(158.9 |
) |
|
|
(63.5 |
) |
|
|
(172.0 |
) |
|
|
|
|
|
|
|
|
Cash flow from
financing activities: |
|
|
|
|
|
|
|
Proceeds from issuance of
shares upon exercise of options |
|
10.4 |
|
|
|
171.1 |
|
|
|
95.3 |
|
|
|
353.5 |
|
Purchase of treasury
shares |
|
(325.0 |
) |
|
|
(304.9 |
) |
|
|
(1,278.0 |
) |
|
|
(1,103.9 |
) |
Payments related to shares
withheld for taxes |
|
(0.6 |
) |
|
|
(0.3 |
) |
|
|
(6.0 |
) |
|
|
(4.6 |
) |
Net cash used in
financing activities |
|
(315.2 |
) |
|
|
(134.1 |
) |
|
|
(1,188.7 |
) |
|
|
(755.0 |
) |
|
|
|
|
|
|
|
|
Unrealized gain (loss) on
marketable securities, net |
|
0.7 |
|
|
|
11.2 |
|
|
|
59.5 |
|
|
|
(12.0 |
) |
|
|
|
|
|
|
|
|
Increase (decrease) in cash
and cash equivalents, marketable securities and short term
deposits |
|
(106.4 |
) |
|
|
(32.7 |
) |
|
|
(90.4 |
) |
|
|
191.1 |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents,
marketable securities and short term deposits at the beginning of
the period |
|
4,055.1 |
|
|
|
4,071.8 |
|
|
|
4,039.1 |
|
|
|
3,848.0 |
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, marketable securities and short term deposits at the
end of the period |
$3,948.7 |
|
|
$4,039.1 |
|
|
$3,948.7 |
|
|
$4,039.1 |
|
INVESTOR CONTACT:Kip E. MeintzerCheck Point
Software Technologies+1.650.628.2040ir@checkpoint.com |
|
MEDIA
CONTACT:Gil MessingCheck Point Software
Technologies+1.650.628.2260press@checkpoint.com |
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