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REDWOOD CITY, Calif.
– July 22, 2002 – Check
Point Software Technologies Ltd. (Nasdaq: CHKP), the worldwide leader
in securing the Internet, today announced financial results for
the second quarter ended June 30, 2002.
Net income for the quarter was $64.7 million or $0.26 per share
(diluted) compared to $63.6 million and $0.25 in the first quarter
of 2002. Revenues for the quarter were $108.6 million, a $4M sequential
increase. During the second quarter, the company generated cash
flow of $75.6 million, bringing the total cash and interest bearing
investments to $1.18 billion as of June 30, 2002. Days Sales Outstanding
(DSO) improved to 49 days.
"We are pleased to
report that Check Point continued to deliver solid operational and
financial performance during the second quarter. Despite continued
weakness in the IT macroeconomic condition we saw increased demand
and business volume, especially in the US market," said Gil
Shwed, chairman and chief executive officer of Check Point Software
Technologies. "During the quarter, we continued to win significant
deals, grow our partnerships and deliver technological advancements.
Second Quarter highlights include:
- Next Generation Security
- Introduced SmartDefense, the first product in a new category
of Active Defense security solutions. SmartDefense intelligently
detects and protects against known and unknown network attacks.
Also, announced technology enhancements to secure VoIP communications
and Wireless LAN infrastructures.
- Next Generation Management
- Introduced SmartCenter and SmartCenter Pro, delivering feature
rich management tools in an easy-to-use, highly scalable single
console with the industry's lowest total cost of ownership
for network security deployments.
- Groundbreaking Price/Performance
– Raised the bar on security price/performance with the introduction
of Next Generation Performance Pack. Real-world benchmarks delivered
710 Mbps VPN and 3.1 Gbps firewall performance on a single $4K
system.
- Global Partnerships
– Unveiled worldwide agreement with HP to deliver end-to-end
VPN/security solutions on multiple HP platforms; agreement included
HP sales, consulting, integration services and technical support.
Also, signed Softbank as the first distributor in Japan for our
Safe@ product line, primarily targeted at small offices/home offices.
- Wireless Security -
Expanded OPSEC integration category to enable comprehensive, interoperable
security for mobile devices and wireless networking solutions
- with support from industry-leading partners HP, Intel, IBM,
Microsoft, Nokia and Proxim.
- Security Certifications
– Check Point VPN-1®/FireWall-1® Next Generation
has passed rigorous tests to achieve three important U.S. and
international certifications and conform to the highest security
standards mandated by government and commercial organizations
worldwide. The following three certifications were obtained during
the quarter: Common Criteria (EAL4), Federal Information Processing
Standard 140-1 (FIPS 140) and IT Security Evaluation Criteria
(ITSEC E3).
- Check Point Experience
– Achieved record attendance with over 2,500 customers and
partners at Check Point Experience conferences held in Anaheim,
California and Dublin, Ireland. This demonstrates the continued
and growing importance of Internet security and best-of-breed
technology in today's marketplace.
"We continued
to expand our leadership in all segments of our business –
the most secure enterprise solutions, securing wireless infrastructures
and the small office/home office broadband segment. In addition,
we raised the security bar with the new SmartDefense solution. Based
on our results and our platform partners' reports, we continue
to gain market share in the open solutions and the hardware-based
VPN/firewall segments. Overall, we are pleased with the demand and
level of activity in our marketplace and believe that we will see
the results of our leadership with the improvement in the IT macroeconomic
conditions."
Conference Call
Information
The Company will host a conference call with the investment community
on July 22 at 5:30 AM PT/8:30 AM ET. To listen to the live webcast,
please visit Check Point's web site at http://www.checkpoint.com/ir.
A replay of the conference call will be available through Monday,
August 5, 2002, at the Company's website or by telephone at
(719) 457-0820, confirmation code 565746.
Safe Harbor Statement
Certain statements in this press release are forward-looking statements.
Because such statements deal with future events, they are subject
to various risks and uncertainties and actual results could differ
materially from Check Point's current expectations. Factors that
could cause or contribute to such differences include, but are not
limited to: the impact on revenues of economic and political uncertainties
and weaknesses in various regions of the world, including the commencement
or escalation of hostilities or acts of terrorism; the inclusion
of network security functionality in third-party hardware or system
software; any unforeseen developmental or technological difficulties
with regard to Check Point's products; changes in the competitive
landscape, including new competitors or the impact of competitive
pricing and products; a shift in demand for products such as Check
Point's; unknown factors affecting third parties with which Check
Point has formed business alliances; timely availability and customer
acceptance of Check Point's new and existing products, and other
factors and risks discussed in Check Point's Annual Report on Form
20-F for the year ended December 31, 2001, which is on file with
the Securities and Exchange Commission. Check Point 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. It is the confirmed market leader of both the worldwide
VPN and firewall markets. The company's Secure Virtual Network (SVN)
architecture provides the VPN and security infrastructure that uniquely
enables secure and reliable Internet communications. SVN solutions,
as delivered in the company's Next Generation product family, secure
business communications and resources for corporate networks, remote
employees, branch offices and partner extranets. Extending the power
of SVN is Check Point's Open Platform for Security (OPSEC), the
industry's framework and alliance for integration and interoperability
with "best-of-breed" solutions from over 300 leading companies.
Check Point solutions are sold, integrated and serviced by a network
of 2,500 certified partners in 203 countries. For more information,
please call us 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.
###
©2002 Check Point Software Technologies
Ltd. All rights reserved. Check Point, the Check Point logo, ClusterXL,
ConnectControl, FireWall-1, FireWall-1 SecureServer, FireWall-1
SmallOffice, FireWall-1 XL, FloodGate-1, INSPECT, INSPECT XL, IQ
Engine, Meta IP, Open Security Extension, OPSEC, Provider-1, SecureKnowledge,
SecureUpdate, SiteManager-1, SmartDefense, SVN, UAM, User-to-Address
Mapping, UserAuthority, Visual Policy Editor, VPN-1, VPN-1 Accelerator
Card, VPN-1 Net, VPN-1 Pro, VPN-1 SecureClient, VPN-1 SecuRemote,
VPN-1 SecureServer, VPN-1 SmallOffice, and 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.
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CHECK
POINT SOFTWARE TECHNOLOGIES LTD.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per
share amount)
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| |
|
|
|
Three
Months Ended
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|
Six
Months Ended
|
| |
|
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June
30,
|
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June
30,
|
| |
|
|
2002
|
2001
|
|
2002
|
2001
|
| |
|
|
(Unaudited)
|
|
(Unaudited)
|
| |
|
|
|
|
|
|
|
|
Revenues
|
|
|
$108,587
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$142,071
|
|
$213,170
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$287,081
|
|
Cost
of revenues
|
|
|
4,889
|
6,464
|
|
9,504
|
16,542
|
|
Gross
profit
|
|
|
103,698
|
135,607
|
|
203,666
|
270,539
|
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Operating
expenses:
|
|
|
|
|
|
|
|
Research
and development
|
|
7,383
|
9,049
|
|
14,782
|
18,369
|
|
Sales
and marketing
|
|
27,865
|
28,714
|
|
52,898
|
59,096
|
|
General
and administrative
|
|
4,364
|
6,145
|
|
9,201
|
12,683
|
|
Total
operating expenses
|
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39,612
|
43,908
|
|
76,881
|
90,148
|
| |
|
|
|
|
|
|
|
|
Operating
income
|
|
|
64,086
|
91,699
|
|
126,785
|
180,391
|
|
Financial
& other income, net
|
|
12,332
|
11,574
|
|
24,559
|
21,675
|
|
Income
before income taxes
|
|
76,418
|
103,273
|
|
151,344
|
202,066
|
|
Income
taxes
|
|
11,684
|
16,472
|
|
23,074
|
31,587
|
| |
|
|
|
|
|
|
|
|
Net
income
|
|
$64,734
|
$86,801
|
|
$128,270
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$170,479
|
| |
|
|
|
|
|
|
|
|
|
|
Earnings
per share (Basic)
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$0.27
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$0.36
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|
0.53
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$0.72
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Number of shares
used in computing
earnings
per share (Basic)
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243,740
|
239,202
|
|
243,673
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238,044
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|
Earnings
per share (Fully diluted)
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$0.26
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$0.33
|
|
$0.50
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$0.66
|
|
Number of shares
used in computing
earnings
per share (Fully diluted)
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253,559
|
260,440
|
|
256,279
|
259,879
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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CHECK
POINT SOFTWARE TECHNOLOGIES LTD.
SELECTED CONSOLIDATED BALANCE SHEET DATA
(In thousands)
ASSETS
|
| |
June 30,
|
|
December 31,
|
|
2002
(Unaudited)
|
2001
(Audited)
|
|
Assets:
|
|
|
|
Cash
and cash equivalents,
deposits
and marketable securities
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$1,182,361
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$1,028,317
|
|
Trade
receivables, net
|
59,315
|
74,294
|
|
Other
receivables and prepaid expenses
|
21,029
|
21,290
|
|
Net
property and equipment
|
12,163
|
13,248
|
|
Deferred
income taxes
|
5,874
|
5,759
|
|
Total
assets
|
$1,280,742
|
$1,142,908
|
 |
|
|
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LIABILITIES
AND
SHAREHOLDERS' EQUITY
|
| Liabilities: |
|
Deferred
revenues
|
$94,624
|
|
$95,703
|
|
Trade
payables and other accrued liabilities
|
134,556
|
131,477
|
|
Total
current liabilities
|
229,180
|
227,180
|
| |
|
|
|
Shareholders'
Equity:
|
|
|
|
Share
capital
|
737
|
735
|
|
Additional
paid-in capital
|
154,378
|
146,816
|
|
Retained
earnings
|
896,447
|
768,177
|
|
Total
shareholders' equity
|
1,051,562
|
915,728
|
|
Total
liabilities and shareholders equity
|
$1,280,742
|
$1,142,908
|
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