Check Point Software Technologies Ltd. Reports Financial Results for Second Quarter 1999
REDWOOD CITY, Calif. – July 20, 1999 – Check Point Software Technologies Ltd. (Nasdaq: CHKP) today announced financial results for the second quarter ended June 30, 1999. Revenues for the quarter were $50,051,000 compared to $34,271,000 for the same period in 1998, an increase of 46%. Net income for the quarter was $21,532,000 or $0.53 per share compared to net income of $16,813,000 or $0.44 per share for the same quarter last year, excluding the effect of an extraordinary capital gain. This represents an increase of 28% in net income and 20% in net income per share. At the same time, operating income grew 34% year over year. "As we anticipated, the second quarter was a strong one for the Company, with growth in all business and geographic segments," said Gil Shwed, president and chief executive officer of Check Point Software Technologies Ltd. "The growth in the Internet and e-commerce continued to drive demand for our products. The Company deepened its market penetration, and now boasts over 80,000 customer installations. Since the beginning of the year, Check Point has doubled its VPN installed base to over 21,000." Check Point continued its market strength around the world. Revenues from the U.S. accounted for 45% of revenues, Europe 35% and rest of world 20%. Revenues from the Company's OEM partners were 10% of revenues, with the largest contribution coming from Nokia. In addition, the contribution from our Worldwide Technical Services organization reached 19% of revenues, due to continued strength in software subscription, educational and professional services. Other activities in the quarter included Check Point signing its 200th Open Platform for Secure Enterprise Connectivity (OPSEC) partner and adding a new OPSEC category for the Managed Service Providers (MSP) market, which enables Check Point to work more closely with the top telcos and ISPs to meet the evolving needs of their customers. The Company also is expanding its open platform to provide Public Key Infrastructure (PKI) interoperability and integration with directory services solutions, two technology areas that are critical to enabling enterprise-wide user management and scalable virtual private networks. New product enhancements introduced during the quarter include Meta IP support for Linux and Unix and the introduction of the next-generation IPSec-compliant Virtual Private Networking (VPN) Appliance, developed with Nokia. The Company continued to garner product awards, including Network Computing's 1999 "Well Connected Award" for the fourth consecutive year and its VPN-1 Appliance earning first place in a Network World review. In addition, strong sales of the VPN-1 Appliance gained Check Point the number one ranking in the Q199 VPN Appliance Market Share study recently published by Infonetics Research. "Check Point's focus on Internet and e-commerce security has paid off, evidenced by our strong performance in the quarter," continued Mr. Shwed. "This is an exciting time for Check Point as the company that secures the Internet."
About Check Point Software
Technologies Ltd. ### (c) 1999 Check Point Software Technologies Ltd. All rights reserved. Check Point, the Check Point logo, FireWall-1, FloodGate-1, INSPECT, IQ Engine, Meta IP, Open Security Extension, OPSEC, Provider-1, User-to-Address Mapping, VPN-1 Accelerator Card, VPN-1 Certificate Manager, VPN-1 Gateway, VPN-1 RemoteLink, VPN-1 SecuRemote, and ConnectControl are trademarks or registered trademarks of Check Point Software Technologies Ltd. or its affiliates. All other product names mentioned herein are trademarks or registered trademarks of their respective owners. CHECK POINT SOFTWARE TECHNOLOGIES LTD. CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (In thousands, except per share amount)
CHECK POINT SOFTWARE TECHNOLOGIES LTD. SELECTED CONSOLIDATED BALANCE SHEET DATA (In thousands) ASSETS
LIABILITIES AND SHAREHOLDERS' EQUITY
1 Excludes similar investments with maturity over one year that appear under "Long term investments" above. INVESTOR RELATIONS CONTACT: MEDIA RELATIONS CONTACT: |
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