|
Strong Financial Results
and Expansion into New Markets
Highlight the First Quarter
REDWOOD CITY, Calif.–
April 12, 2000 – Check Point
Software Technologies Ltd. (Nasdaq: CHKP) today announced financial
results for the first quarter ended March 31, 2000. Revenues for
the quarter were $78,166,000 compared to $43,772,000 for the same
period in 1999, an increase of 79%. Net income for the quarter
was $34,879,000 or $0.40 per share compared to $19,703,000, or
$0.24 per share in the same quarter in 1999, an increase of 77%
in net income and 67% in net income per share. These results reflect
a 2-for-1 stock split effective January 31, 2000.
"Check Point achieved
strong revenues around the globe and in all the major markets
we serve," stated Gil Shwed, president and chief executive
officer of Check Point Software Technologies. "The strength
of Check Point's markets, products and solutions for securing
the Internet continued to drive demand in the first quarter."
Recent highlights include:
- New Product Introductions:
– Check Point 2000 Edition, shipped the new version
of VPN-1/FireWall-1, offering new levels of performance, platform
support and high availability
- Cyber Attack Defense System (CADS), responded with
a new, comprehensive solution to protect E-Businesses from cyber
attacks
- "Check Point
Everywhere"
– Expanded to small and medium business market –
introduced Site Manager-1, enabling telcos and service providers
to address the high-growth market for delivering Internet security
services to small and medium businesses
– Broadband consumer offerings (SofaWare) –
Terayon and Check Point's SofaWare collaborated to bring Internet
security to home cable modem users through cable operators
– Open Appliance initiative – introduced a
Linux based, open appliance initiative through Check Point's
OPSEC program, integrating VPN-1/FireWall-1 security products
on the industry's widest range of appliance platforms
- Installed Base Growth
- Surpassed 125,000 customer installations, 42,000 VPN installations
and 47,000 total customers
- Market Leadership
/ Product Awards – won the Network Computing "Editor's
Choice Award," Check Point/Nokia Appliance named 1999 VPN
Market Leader, and Check Point awarded prestigious "Industry
Award" by RSA Security
- Leading Industry Partners
– Collaboration announcements with Nokia, Texas Instruments,
Compaq, Alcatel, Terayon, Telecom Italia, Intel, VeriSign, ISS,
IBM and leading internet service providers
- User Conference –
Check Point held its first conference for customers in San Francisco,
attracting more than 900 attendees
- Community and Education
Fund – a new fund established by Check Point to serve the
education and community needs. The initial size of the fund
will be 10 million NIS, or approximately $2.5 million.
Check Point also announces the appointment
of Eyal Desheh as chief financial officer. Eyal was most recently
chief financial officer for Scitex Corporation Ltd. (traded on
Nasdaq under the symbol SCIX), a world leader in digital imaging
solutions for graphics communications. There, he had responsibilities
for all the major finance functions, investor relations, risk
management, mergers and acquisitions and legal affairs. Prior
to Scitex, he served in numerous finance and business development
roles at Bezeq, the Israeli telecom company, Teva Pharmaceutical
Ltd., H.L. Financial Services Ltd. and Bank Hapoalim.
"Our core business expanded as corporations
of all sizes continued to implement Check Point's Secure Virtual
Network (SVN) solutions," continued Mr. Shwed. "We've
also executed on our plan to expand into new markets, including
broadband consumer market and small to medium corporations. We
intend to continue to expand and invest to bring our core technology
to a wide variety of solutions and deliver on our mission to secure
the Internet."
Safe Harbor Statement
Statements in this press release which are not purely historical
are forward-looking statements, including any statements regarding
beliefs, plans, expectations or intentions regarding the future.
Forward looking statements in this release include statements
regarding our intent to continue to expand and invest. Because
such statements deal with future events, they are subject to various
risks and uncertainties and actual results could differ materially
from the company's current expectations. Factors that could cause
or contribute to such differences include, but are not limited
to: the impact on revenues of economic weakness in geographic
regions of the world; the inclusion of network security functionality
in third-party hardware or system software; any unforeseen developmental
or technological difficulties with regard to our products; changes
in the competitive landscape including new competitors and/or
the impact of competitive pricing and products; timely availability
and customer acceptance of new and existing products, and other
factors and risks discussed in our Report on Form 20-F for the
year ended December 31, 1998, which has been filed with the Securities
and Exchange Commission. The company assumes no obligation to
update information concerning its expectations.
About Check Point
Software Technologies
Check Point Software Technologies is the worldwide leader in securing
the Internet. The company's Secure Virtual Network (SVN) architecture
provides the infrastructure that enables secure and reliable Internet
communications. SVN secures business-to-business (B2B) communications
between networks, systems, applications and users across the Internet,
Intranets and extranets. Check Point's Open Platform for Security
(OPSEC) provides the framework for integration and interoperability
with "best-of-breed" solutions from over 200 leading
industry partners. For more information, please Check Point at
(800) 429-4391 or (650) 628-2000 or visit us on the Web at http://www.checkpoint.com
or at http://www.opsec.com.
###
2000 Check Point
Software Technologies Ltd. All rights reserved. Check Point, the
Check Point logo, FireWall-1, FireWall-1 SecureServer, FloodGate-1,
INSPECT, IQ Engine, Meta IP, MultiGate, Open Security Extension,
OPSEC, Provider-1, SVN, User-to-Address Mapping, VPN-1, VPN-1
Accelerator Card, VPN-1 Appliance, VPN-1 Certificate Manager,
VPN-1 Gateway, VPN-1 SecuRemote, VPN-1 SecureServer, 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. The products described in this document are protected
by U.S. Patent No. 5,606,668 and 5,835,726 and may be protected
by other U.S. Patents, foreign patents, or pending applications.
###
CHECK POINT SOFTWARE TECHNOLOGIES LTD.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share amount)
|
|
|
|
Three Months Ended
March 31
 |
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
1999
|
|
2000
|
|
|
|
|
|
|
|
| Net
revenues |
|
|
|
$43,772 |
|
$78,166 |
| Cost
of revenues |
|
|
|
4,711
|
|
7,644
|
| Gross
profit |
|
|
|
39,061 |
|
70,522 |
| Operating
expenses: |
|
|
|
|
|
| Research
and development, net |
|
|
4,043 |
|
6,175 |
| Sales
and marketing |
|
|
12,643 |
|
24,218 |
| General
and administrative |
|
|
2,862
|
|
5,199
|
|
|
|
|
|
|
| Total
operating expenses |
|
|
19,548
|
|
35,592
|
|
|
|
|
|
|
|
| Operating
income |
|
|
|
19,513 |
|
34,930 |
| Financial
income, net |
|
|
2,624
|
|
5,494
|
|
|
|
|
|
|
| Income
before income taxes |
|
|
22,137 |
|
40,424 |
| Income
taxes |
|
|
2,434
|
|
5,545
|
| Net
Income |
|
|
|
19,703
|
|
34,879
|
|
|
|
|
|
|
| Earnings
per share (Basic) |
|
|
|
$0.27
|
|
$0.45
|
| Number
of shares used in computing earnings per share (Basic) |
|
|
|
73,180
|
|
76,752
|
| Earnings
per share (Fully diluted) |
|
|
|
$0.24
|
|
$0.40
|
| Number
of shares used in computing earnings per share (Fully diluted) |
|
|
|
80,610
|
|
87,647
|
CHECK POINT SOFTWARE TECHNOLOGIES LTD.
SELECTED CONSOLIDATED BALANCE SHEET DATA
(In thousands)
ASSETS
|
|
|
|
|
December 31,
1999
(audited) |
|
March 31,
2000
(unaudited) |
|
|
|
|
|
|
|
|
|
|
| Current
assets: |
|
|
|
|
|
|
| Cash
& cash equivalents, short term deposits and marketable
securities* |
|
|
$242,490 |
|
$320,076 |
| Trade
receivables, net |
|
|
|
47,639 |
|
57,042 |
| Other
receivables and prepaid expenses |
|
9,287
|
|
12,472
|
| Total
current assets |
|
|
|
299,416
|
|
389,590
|
|
|
|
|
|
|
|
|
| Long
term investments in marketable securities and bank deposits* |
|
|
82,282
|
|
68,564
|
| Other
investments |
|
|
|
|
602
|
|
602
|
| Long
term prepaid expenses |
|
|
1,145
|
|
772
|
|
|
|
|
|
|
| Net
property and equipment |
|
|
9,694
|
|
11,327
|
|
|
|
|
|
|
|
|
| Severance
pay fund |
|
|
|
1,094
|
|
1,260
|
|
|
|
|
|
|
|
|
| Deferred
income taxes |
|
|
1,207
|
|
1,259
|
|
|
|
|
|
$395,440
|
|
$473,374
|
|
|
|
|
|
|
|
|
|
*Total cash and cash equivalents and other
interest bearing investments |
|
|
|
$324,772 |
|
$388,614 |
LIABILITIES AND
SHAREHOLDERS' EQUITY
| Deferred
revenues |
|
|
|
$55,999 |
|
$72,421 |
| Trade
payables and other accrued liabilities |
|
|
|
45,213
|
|
64,456 |
| Total
current liabilities |
|
|
|
$101,212 |
|
$136,877 |
|
|
|
|
|
|
| Accrued
severance pay |
|
|
1,720
|
|
2,108
|
|
|
|
|
|
|
|
|
| Total
shareholders' equity |
|
|
292,508
|
|
334,389
|
|
|
|
|
|
$395,440
|
|
$473,374
|
|
