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Form 20-F

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Part I

Item 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS
  Not applicable.
Item 2. OFFER STATISTICS AND EXPECTED TIMETABLE
  Not applicable.
Item 3. KEY INFORMATION

The following selected consolidated statement of income data for the years ended December 31, 2000, 2001 and 2002, and the selected consolidated balance sheet data as of December 31, 2001 and 2002, have been derived from the audited consolidated financial statements of Check Point Software Technologies Ltd. (together with its subsidiaries, the "Company" or "Check Point") set forth elsewhere in this Form 20-F. These financial statements have been prepared in accordance with generally accepted accounting principles in the United States ("U.S. GAAP"). The selected consolidated statement of income data for the years ended December 31, 1998 and 1999 and the selected consolidated balance sheet data as of December 31, 1998, 1999 and 2000 have been derived from the Company's audited consolidated financial statements not included in this Form 20-F and have also been prepared in accordance with U.S. GAAP. The selected consolidated financial statements set forth below should be read in conjunction with and are qualified by reference to the Company's consolidated financial statements and the related notes as well as "Item 5 — Operating and Financial Review and Prospects" included elsewhere in this Form 20-F.

On December 20, 1999, the Company's Board of Directors approved a two-for-one stock split in the form of a stock dividend effective January 23, 2000. On June 29, 2000 the Company's Board of Directors approved a two-for-one stock split in the form of a stock dividend effective July 14, 2000. On January 18, 2001, the Company's Board of Directors approved a three-for-two stock split in the form of a stock dividend effective February 1, 2001. All share and per share numbers herein reflect adjustments resulting from these stock splits.

 
Year Ended December 31,

 
1998 (*)

1999

2000

2001

2002

 
(in thousands, except share data)
Consolidated Statement of Income Data:                      
Revenues   $141,941   $219,567   $425,283   $527,643   $426,989  





Operating expenses:  
 Cost of revenues   13,623   22,423   35,265   26,571   20,693  
 Research and development, net   10,629   18,923   30,309   33,221   28,709  
 Sales and marketing   39,966   68,229   110,003   109,086   104,606  
 General and administrative   10,886   13,069   20,409   22,002   17,969  





Total operating expenses   75,104   122,644   195,986   190,880   171,977  





Operating income   66,837   96,923   229,297   336,763   255,012  
Financial income, net   4,406   12,962   29,147   44,760   49,314  
Capital gain   2,581   --   --   --   --  





Income before taxes on income   73,824   109,885   258,444   381,523   304,326  
Taxes on income   3,947   14,104   37,231   59,603   49,246  





Net Income   $  69,877   $  95,781   $221,213   $321,920   $255,080  





 
    $      0.33   $      0.43   $      0.95   $      1.34   $      1.04  
Basic net earnings per share (1)  
  Shares used in computing basic net earnings per  
  share (1)   212,610   222,930   232,611   240,008   244,097  
 
Diluted net earnings per share (1)   $      0.30   $      0.39   $      0.84   $      1.25   $      1.00  
  Shares used in computing diluted net earnings  
per share (1)   232,170   246,456   262,515   258,075   254,772