|
CHECK POINT SOFTWARE TECHNOLOGIES LTD.
|
(Translation of registrant's name into English)
5 Ha’solelim Street, Tel Aviv, Israel
(Address of principal executive offices)
|
|
INVESTOR CONTACT:
Kip E. Meintzer
+1.650.628.2040
ir@checkpoint.com
|
MEDIA CONTACT:
Ali Donzanti
Check Point Software Technologies
+1.650.628.2030
press@checkpoint.com |
· |
Total Revenue: $428 million, a 6 percent increase year over year
|
· |
Software Blades Subscriptions Revenues: $99 million, a 24 percent increase year over year
|
· |
GAAP Operating Income: $206 million, representing 48 percent of revenues
|
· |
Non-GAAP Operating Income: $231 million, representing 54 percent of revenues
|
· |
GAAP EPS: $0.99, a 7 percent increase year over year
|
· |
Non-GAAP EPS: $1.13, a 9 percent increase year over year
|
· |
Deferred Revenues: $889 million, a 15 percent increase year over year
|
· |
Total Revenue: $428 million compared to $404 million in the third quarter of 2015.
|
· |
GAAP Operating Income: $206 million compared to $205 million in the third quarter of 2015.
|
· |
Non-GAAP Operating Income: $231 million compared to $228 million in the third quarter of 2015.
|
· |
GAAP Net Income and Earnings per Diluted Share: GAAP net income was $170 million compared to $168 million in the third quarter of 2015. GAAP earnings per diluted share were $0.99 compared to $0.92 in the third quarter of 2015.
|
· |
Non-GAAP Net Income: Non-GAAP net income was $194 million compared to $188 million in the third quarter of 2015.
|
· |
Non-GAAP Earnings per Diluted Share: $1.13 compared to $1.04 in the third quarter of 2015.
|
· |
Deferred Revenues: As of September 30, 2016, deferred revenues were $889 million compared to $772 million as of September 30, 2015.
|
· |
Cash Flow: Cash flow from operations of $214 million compared to $228 million in the third quarter of 2015.
|
· |
Share Repurchase Program: During the third quarter of 2016, the company repurchased 3.2 million shares at a total cost of $247 million.
|
· |
Cash Balances, Marketable Securities and Short Term Deposits: $3,708 million as of September 30, 2016, compared to $3,612 million as of September 30, 2015.
|
· |
Next-Generation Intrusion Prevention System (NGIPS) Test with 99.95% exploit catch rate, the highest of all participates and the leading TCO rating
|
· |
NSS Labs Breach Detection Systems (BDS) group test
|
· |
Next Generation Firewall (NGFW)
|
· |
UBS Global Technology Conference
Nov. 15, 2016 – San Francisco, CA |
· |
Credit Suisse Annual Technology Conference
Nov. 29, 2016 – Scottsdale, AZ |
· |
Raymond James Supply Chain Conference*
Dec. 6-7, 2016 – New York, NY |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
|||||||||||||
Revenues:
|
||||||||||||||||
Products and licenses
|
$
|
136,931
|
$
|
135,218
|
$
|
395,909
|
$
|
381,799
|
||||||||
Software Blades subscriptions
|
98,575
|
79,622
|
279,403
|
230,598
|
||||||||||||
Total revenues from products and software blades
|
235,506
|
214,840
|
675,312
|
612,397
|
||||||||||||
Software updates and maintenance
|
192,068
|
189,016
|
579,282
|
559,369
|
||||||||||||
Total revenues
|
427,574
|
403,856
|
1,254,594
|
1,171,766
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Cost of products and licenses
|
25,244
|
24,400
|
73,408
|
69,333
|
||||||||||||
Cost of software blades subscriptions
|
3,009
|
2,351
|
6,695
|
5,662
|
||||||||||||
Total cost of products and software blades
|
28,253
|
26,751
|
80,103
|
74,995
|
||||||||||||
Cost of Software updates and maintenance
|
21,371
|
20,107
|
61,536
|
58,080
|
||||||||||||
Amortization of technology
|
546
|
546
|
1,638
|
1,262
|
||||||||||||
Total cost of revenues
|
50,170
|
47,404
|
143,277
|
134,337
|
||||||||||||
Research and development
|
44,443
|
37,495
|
130,631
|
109,249
|
||||||||||||
Selling and marketing
|
104,386
|
90,463
|
303,702
|
258,605
|
||||||||||||
General and administrative
|
22,087
|
23,860
|
66,124
|
68,848
|
||||||||||||
Total operating expenses
|
221,086
|
199,222
|
643,734
|
571,039
|
||||||||||||
Operating income
|
206,488
|
204,634
|
610,860
|
600,727
|
||||||||||||
Financial income, net
|
12,145
|
8,285
|
33,908
|
24,905
|
||||||||||||
Income before taxes on income
|
218,633
|
212,919
|
644,768
|
625,632
|
||||||||||||
Taxes on income
|
48,981
|
45,176
|
141,875
|
134,370
|
||||||||||||
Net income
|
$
|
169,652
|
$
|
167,743
|
$
|
502,893
|
$
|
491,262
|
||||||||
Basic earnings per share
|
$
|
1.00
|
$
|
0.94
|
$
|
2.94
|
$
|
2.72
|
||||||||
Number of shares used in computing basic earnings per share
|
169,113
|
177,519
|
171,140
|
180,335
|
||||||||||||
Diluted earnings per share
|
$
|
0.99
|
$
|
0.92
|
$
|
2.88
|
$
|
2.66
|
||||||||
Number of shares used in computing diluted earnings per share
|
171,882
|
181,804
|
174,549
|
184,846
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
Sep 30,
|
Sep 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
|||||||||||||
GAAP operating income
|
$
|
206,488
|
$
|
204,634
|
$
|
610,860
|
$
|
600,727
|
||||||||
Stock-based compensation (1)
|
20,818
|
19,956
|
61,034
|
56,534
|
||||||||||||
Amortization of intangible assets and acquisition related expenses (2)
|
3,282
|
3,309
|
9,858
|
7,912
|
||||||||||||
Non-GAAP operating income
|
$
|
230,588
|
$
|
227,899
|
$
|
681,752
|
$
|
665,173
|
||||||||
GAAP net income
|
$
|
169,652
|
$
|
167,743
|
$
|
502,893
|
$
|
491,262
|
||||||||
Stock-based compensation (1)
|
20,818
|
19,956
|
61,034
|
56,534
|
||||||||||||
Amortization of intangible assets and acquisition related expenses (2)
|
3,282
|
3,309
|
9,858
|
7,912
|
||||||||||||
Taxes on the above items (3)
|
(244
|
)
|
(2,556
|
)
|
(2,740
|
)
|
(5,504
|
)
|
||||||||
Non-GAAP net income
|
$
|
193,508
|
$
|
188,452
|
$
|
571,045
|
$
|
550,204
|
||||||||
Diluted GAAP Earnings per share
|
$
|
0.99
|
$
|
0.92
|
$
|
2.88
|
$
|
2.66
|
||||||||
Stock-based compensation (1)
|
0.12
|
0.11
|
0.35
|
0.31
|
||||||||||||
Amortization of intangible assets and acquisition related expenses (2)
|
0.02
|
0.02
|
0.06
|
0.04
|
||||||||||||
Taxes on the above items (3)
|
-
|
(0.01
|
)
|
(0.02
|
)
|
(0.03
|
)
|
|||||||||
Diluted Non-GAAP Earnings per share
|
$
|
1.13
|
$
|
1.04
|
$
|
3.27
|
$
|
2.98
|
||||||||
Number of shares used in computing diluted Non-GAAP earnings per share
|
171,882
|
181,804
|
174,549
|
184,846
|
||||||||||||
(1) Stock-based compensation:
|
||||||||||||||||
Cost of products and licenses
|
$
|
16
|
$
|
17
|
$
|
50
|
$
|
47
|
||||||||
Cost of software updates and maintenance
|
560
|
396
|
1,535
|
1,110
|
||||||||||||
Research and development
|
2,993
|
3,295
|
9,291
|
8,536
|
||||||||||||
Selling and marketing
|
5,508
|
4,193
|
13,311
|
12,112
|
||||||||||||
General and administrative
|
11,741
|
12,055
|
36,847
|
34,729
|
||||||||||||
$
|
20,818
|
19,956
|
$
|
61,034
|
56,534
|
|||||||||||
(2) Amortization of intangible assets and acquisition related expenses:
|
||||||||||||||||
Amortization of technology-cost of revenues
|
$
|
546
|
546
|
$
|
1,638
|
1,262
|
||||||||||
Research and development
|
1,897
|
1,897
|
5,691
|
4,249
|
||||||||||||
Selling and marketing
|
839
|
866
|
2,529
|
2,401
|
||||||||||||
$
|
3,282
|
3,309
|
$
|
9,858
|
7,912
|
|||||||||||
(3) Taxes on the above items
|
$
|
(244
|
)
|
(2,556
|
)
|
$
|
(2,740
|
)
|
(5,504
|
)
|
||||||
Total, net
|
$
|
23,856
|
$
|
20,709
|
$
|
68,152
|
$
|
58,942
|
September 30,
|
December 31,
|
|||||||
2016
|
2015
|
|||||||
(unaudited)
|
(audited)
|
|||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
224,327
|
$
|
192,312
|
||||
Marketable securities and short-term deposits
|
1,005,902
|
1,091,915
|
||||||
Trade receivables, net
|
254,716
|
410,763
|
||||||
Prepaid expenses and other current assets
|
44,453
|
40,844
|
||||||
Total current assets
|
1,529,398
|
1,735,834
|
||||||
Long-term assets:
|
||||||||
Marketable securities
|
2,477,626
|
2,331,187
|
||||||
Property and equipment, net
|
57,994
|
48,692
|
||||||
Severance pay fund
|
4,783
|
5,262
|
||||||
Deferred tax asset, net
|
62,030
|
65,711
|
||||||
Goodwill and other intangible assets, net
|
835,120
|
838,020
|
||||||
Other assets
|
36,307
|
45,174
|
||||||
Total long-term assets
|
3,473,860
|
3,334,046
|
||||||
Total assets
|
$
|
5,003,258
|
$
|
5,069,880
|
Current liabilities:
|
||||||||
Deferred revenues
|
$
|
677,755
|
$
|
717,528
|
||||
Trade payables and other accrued liabilities
|
323,617
|
339,325
|
||||||
Total current liabilities
|
1,001,372
|
1,056,853
|
||||||
Long-term liabilities:
|
||||||||
Long-term deferred revenues
|
210,755
|
188,255
|
||||||
Income tax accrual
|
324,400
|
283,215
|
||||||
Deferred tax liability, net
|
-
|
240
|
||||||
Accrued severance pay
|
9,185
|
9,451
|
||||||
544,340
|
481,161
|
|||||||
Total liabilities
|
1,545,712
|
1,538,014
|
||||||
Shareholders’ equity:
|
||||||||
Share capital
|
774
|
774
|
||||||
Additional paid-in capital
|
1,087,158
|
987,331
|
||||||
Treasury shares at cost
|
(4,734,366
|
)
|
(4,043,271
|
)
|
||||
Accumulated other comprehensive gain (loss)
|
9,805
|
(4,250
|
)
|
|||||
Retained earnings
|
7,094,175
|
6,591,282
|
||||||
Total shareholders’ equity
|
3,457,546
|
3,531,866
|
||||||
Total liabilities and shareholders’ equity
|
$
|
5,003,258
|
$
|
5,069,880
|
||||
Total cash and cash equivalents, marketable securities and short-term deposits
|
$
|
3,707,855
|
$
|
3,615,414
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
|||||||||||||
Cash flow from operating activities:
|
||||||||||||||||
Net income
|
$
|
169,652
|
$
|
167,743
|
$
|
502,893
|
$
|
491,262
|
||||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||||||
Depreciation of property and equipment
|
3,099
|
2,658
|
8,491
|
7,541
|
||||||||||||
Amortization of intangible assets
|
963
|
990
|
2,901
|
2,622
|
||||||||||||
Stock-based compensation
|
20,818
|
19,956
|
61,034
|
56,534
|
||||||||||||
Realized loss (gain) on marketable securities
|
(1,743
|
)
|
176
|
(2,867
|
)
|
97
|
||||||||||
Decrease in trade and other receivables, net
|
20,317
|
28,973
|
161,534
|
124,176
|
||||||||||||
Increase in deferred revenues, trade payables and other accrued liabilities
|
4,867
|
14,388
|
16,213
|
32,098
|
||||||||||||
Excess tax benefit from stock-based compensation
|
(3,387
|
)
|
(3,772
|
)
|
(8,200
|
)
|
(6,073
|
)
|
||||||||
Deferred income taxes, net
|
(662
|
)
|
(3,285
|
)
|
(1,876
|
)
|
(3,116
|
)
|
||||||||
Net cash provided by operating activities
|
213,924
|
227,827
|
740,123
|
705,141
|
||||||||||||
Cash flow from investing activities:
|
||||||||||||||||
Cash paid in conjunction with acquisitions, net of acquired cash
|
-
|
-
|
-
|
(96,544
|
)
|
|||||||||||
Investment in property and equipment
|
(7,143
|
)
|
(4,361
|
)
|
(17,793
|
)
|
(10,206
|
)
|
||||||||
Net cash used in investing activities
|
(7,143
|
)
|
(4,361
|
)
|
(17,793
|
)
|
(106,750
|
)
|
||||||||
Cash flow from financing activities:
|
||||||||||||||||
Proceeds from issuance of shares upon exercise of options
|
46,310
|
20,074
|
79,839
|
54,089
|
||||||||||||
Purchase of treasury shares
|
(247,000
|
)
|
(249,763
|
)
|
(739,937
|
)
|
(736,445
|
)
|
||||||||
Excess tax benefit from stock-based compensation
|
3,387
|
3,772
|
8,200
|
6,073
|
||||||||||||
Net cash used in financing activities
|
(197,303
|
)
|
(225,917
|
)
|
(651,898
|
)
|
(676,283
|
)
|
||||||||
Unrealized gain (loss) on marketable securities, net
|
(9,609
|
)
|
4,150
|
22,009
|
7,261
|
|||||||||||
Increase (decrease) in cash and cash equivalents, marketable securities and short term deposits
|
(131
|
)
|
1,699
|
92,441
|
(70,631
|
)
|
||||||||||
Cash and cash equivalents, marketable securities and short term deposits at the beginning of the period
|
3,707,986
|
3,610,603
|
3,615,414
|
3,682,933
|
||||||||||||
Cash and cash equivalents, marketable securities and short term deposits at the end of the period
|
$
|
3,707,855
|
$
|
3,612,302
|
$
|
3,707,855
|
$
|
3,612,302
|
CHECK POINT SOFTWARE TECHNOLOGIES LTD.
|
|||
|
By:
|
/s/ Tal Payne | |
Tal Payne | |||
Chief Financial Officer & Chief Operating Officer
|
|||