Check Point Software Technologies Ltd. Reports Third Quarter Earnings
Redwood City, CA —
Check Point Software Technologies Ltd. (NASDAQ: CHKPF) today announced third quarter revenues of $8,030,000 compared to $2,599,000 for the same period in 1995, an increase of 209%. Net income for the quarter was $3,748,000 or $0.10 per share, compared to $1,614,000 or $0.05 per share in the third quarter of 1995.
Revenues for the nine months ended September 30, 1996, were $20,246,000 compared to $5,800,000 for the same period in 1995. Net income for the nine months ended September 30, 1996 was $9,739,000 or $0.28 per share, compared to a net income of $3,295,000 or $0.10 per share for the same period in 1995.
"Our third quarter revenues reflect the market acceptance of Check Point Software Technologies and Check Point FireWall-1," stated Gil Shwed, chief executive officer and president of Check Point Software Technologies Ltd. "The solid growth experienced by the company this quarter is the fruit of our investment in channel diversification worldwide." The company also saw strong customer interest for its FireWall-1 for Microsoft Windows NT product, which began shipping in July.
In the third quarter, Check Point Software Technologies continued to expand and diversify its distribution channels, signing numerous value-added resellers and distributors worldwide. The company also added to its existing broad set of OEM relationships an expanded relationship with Hewlett Packard Company to include FireWall-1 in H-P's Broadband Internet Delivery Services (BIDS) program, a global agreement with NCR whereby every NCR WorldMark enterprise server will ship pre-loaded with FireWall-1 for Windows NT, and a strategic relationship with U.S. Robotics to bundle FireWall-1 on U.S. Robotics' NT-based EdgeServer remote access server.
The company expanded its direct presence in the U.S. in the quarter by establishing additional sales offices in Chicago, Illinois; New York, New York; and a U.S. federal region office in Alexandria, Virginia to service the company's federal government business. The company's growing direct presence has resulted in stronger relationships with its VARs, distributors and customers.
During the third quarter, Check Point Software Technologies also established subsidiaries in the United Kingdom, France and Singapore in order to increase the company's direct presence internationally. The company believes that this investment will result in increased visibility for the company worldwide.
Check Point FireWall-1 received accolades for technology leadership from a variety of industry publications and organizations this quarter, including the "Grand Prize" and "Best Internet/Intranet Product" in the Best of Show awards at Networld+Interop Paris, the "Intranet Excellence" award for Security from Intranet Magazine, "Editors' Choice" for Best Internet Firewall from Internetwork Magazine, and "Best of Class" for Network Management from Computerworld.
In the third quarter, the company was the first network security vendor to support Microsoft NetShow, Netscape CoolTalk, Sybase SQL Server and Open Server, and Xing StreamWorks. Additionally, the company was the first to provide customers with a safeguard against denial of service attacks with the availability of the free, downloadable SYNDefender module.
"Check Point Software Technologies is committed to providing the features customers need when they need them, such as timely support for new applications, enhanced enterprise management capabilities and support for a wide variety of server and internetworking platforms," said Dr. Deborah Triant, chief executive officer and president of Check Point Software Technologies, Inc.
About CHECK POINT Software Technologies Ltd.
Check Point Software Technologies Ltd. (NASDAQ:CHKPF) is the network security market share leader and inventor of the "Stateful Inspection" architecture. The company commanded a 40% share of the worldwide firewall market in 1995 according to an IDC study issued in February 1996. The company's flagship product, Check Point FireWall-1, protects internal and external network communications for thousands of organizations of all sizes. Its products are sold worldwide through OEM partners, distributors, VARs, Systems and network integrators and Internet Service Providers. The company has U.S. headquarters in Redwood City, California and international headquarters in Ramat-Gan, Israel. For product information, please call (650) 482-4900, e-mail info@checkpoint.com or visit Check Point at http://www.checkpoint.com.
INVESTOR RELATIONS CONTACTS:
|
Hagi Schwartz, Chief Financial Officer CHECK POINT Software Technologies, Ltd. 011-972-3-6131-833, x 145 hagi@checkpoint.com |
Angela Lee, Director of Finance CHECK POINT Software Technologies, Inc. 415-562-0400, x 237 angela@checkpoint.com |
CHECK POINT SOFTWARE TECHNOLOGIES LTD.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share amount)
(Unaudited)
| Nine Months Ended | Three Months Ended | |||||
| September 30 | September 30 | |||||
| 1995 | 1996 | 1995 | 1996 | |||
| Revenues | $5,800 | $20,246 | $2,599 | $8,030 | ||
| Cost of revenues | 353 | 1,282 | 101 | 634 | ||
| Gross profit | 5,447 | 18,964 | 2,498 | 7,396 | ||
|
Operating expenses: |
||||||
| Research and development net | 573 | 2,079 | 227 | 874 | ||
| Sales and marketing | 787 | 6,059 | 347 | 2,463 | ||
| General and administrative | 767 | 1,633 | 313 | 754 | ||
| Total operating expenses | 2,127 | 9,771 | 887 | 4,091 | ||
| Operating income | 3,320 | 9,193 | 1,611 | 3,305 | ||
| Financial income (loss) | (33) | 736 | 1 | 635 | ||
| Income before income tax | 3,287 | 9,929 | 1,612 | 3,940 | ||
| Income taxes (benefit) | (8) | 190 | (2) | 192 | ||
| Net income | $3,295 | $9,739 | $1,614 | $3,748 | ||
| Earnings per share | $0.10 | $0.28 | $0.05 | $0.10 | ||
| Number of shares used in computing earnings per share | 33,812 | 34,838 | 33,812 | 37,083 | ||
(In thousands)
| ASSETS | ||||||||||
| December 31, | September 30, | |||||||||
| 1995 | 1996 | |||||||||
| Current Assets: | ||||||||||
| Cash & short term investments | $3,634 | $49,650 | ||||||||
| Trade receivable, net | 2,900 | 5,772 | ||||||||
| Other receivable and prepaid expenses | 158 | 1,280 | ||||||||
| Total current assets | 6,692 | 56,702 | ||||||||
| Net property and equipment | 388 | 1,039 | ||||||||
| Deferred Income Taxes | 9 | 20 | ||||||||
| $7,089 | $57,761 | |||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||
| Total current liabilities | $1,954 | $5,468 | ||||||||
| Accrued Severance Pay, net | 95 | 192 | ||||||||
| Total shareholders' equity | 5,040 | 52,101 | ||||||||
| $ 7,089 | $57,761 | |||||||||
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