Check Point® Software Technologies Ltd. (NASDAQ: CHKP), today announced its financial results for the first quarter ended March 31, 2017.
First Quarter 2017:
- Total Revenue: $435 million, an 8 percent increase year over year
- Software Blades Subscriptions Revenues: $112 million, a 27 percent increase year over year
- GAAP Operating Income: $211 million, representing 48 percent of revenues
- Non-GAAP Operating Income: $233 million, representing 54 percent of revenues
- GAAP EPS: $1.08, a 15 percent increase year over year
- Non-GAAP EPS: $1.20, a 13 percent increase year over year
- Deferred Revenues: $1,063 million, a 20 percent increase year over year
“We started off 2017 with a positive trend delivering earning per share and revenues towards the top end of our projections,” said Gil Shwed, founder and chief executive officer of Check Point Software Technologies. “We have executed on our vision for consolidating security with the launch of Check Point Infinity, the cyber security platform for the future. The first consolidated security architecture across networks, cloud and mobile, providing the highest level of threat prevention.”
Financial Highlights for the First Quarter of 2017:
- Total Revenue: $435 million compared to $404 million in the first quarter of 2016.
- GAAP Operating Income: $211 million compared to $202 million in the first quarter of 2016.
- Non-GAAP Operating Income: $233 million compared to $224 million in the first quarter of 2016.
- GAAP Taxes on Income: $39 million compared to $45 million in the first quarter of 2016.
- GAAP Net Income: $183 million compared to $167 million in the first quarter of 2016.
- GAAP Earnings per Diluted Share: $1.08 compared to $0.95 in the first quarter of 2016.
- Non-GAAP Net Income: $202 million compared to $187 million in the first quarter of 2016.
- Non-GAAP Earnings per Diluted Share: $1.20 compared to $1.06 in the first quarter of 2016.
- Deferred Revenues: As of March 31, 2017, deferred revenues were $1,063 million compared to $883 million as of March 31, 2016.
- Cash Flow: Cash flow from operations of $355 million compared to $324 million in the first quarter of 2016.
- Share Repurchase Program: During the first quarter of 2017, the company repurchased 2.6 million shares at a total cost of $248 million.
- Cash Balances, Marketable Securities and Short Term Deposits: $3,797 million as of March 31, 2017, compared to $3,729 million as of March 31, 2016.
For information regarding the non-GAAP financial measures discussed in this release, as well as a reconciliation of such non-GAAP financial measures to the most directly comparable GAAP financial measures, please see “Use of Non-GAAP Financial Information” and “Reconciliation of GAAP to Non-GAAP Financial Information.”
2017 Business Highlights
Revolutionary New Cyber Security Architecture: Check Point Infinity, designed to meet the critical security needs of enterprises and organizations of all sizes. Infinity is the first consolidated security platform spanning across networks, cloud, and mobile, designed to provide preemptive threat prevention to keep customers protected against the growing number of cyber-attacks. Infinity is managed from a single pane of glass and incorporated across all of Check Point’s products. As part of the Infinity platform, we have updated key product components:
Consolidated Security Management: Consolidating the management of threat prevention functions as well as unified management for the cloud and network environment the release of R80.10 features dozens of new capabilities and enhancements, including unique policy layers, security multi-zones and boosted performance to keep organizations protected against threats, anytime and anywhere.
Unified Mobility Protection: SandBlast Mobile is a unified, cross-platform solution, which protects enterprises and organizations of all sizes from mobile breaches. SandBlast Mobile detects and blocks both known and unknown malware, safeguards against poisoned Wi-Fi networks and man-in-the-middle attacks, as well as SMS phishing schemes.
Extending Threat Prevention – Anti-Ransomware: Check Point’s new Anti-Ransomware technology enables businesses to protect against cyber extortion and sophisticated ransomware
World’s Fastest Threat Prevention Platform: Launched an updated family of super-high end security platforms, the 44000 & 64000 appliance series deliver exceptionally fast threat prevention with 42 Gbps of Real-World Production Threat Prevention throughput and 636 Gbps of Real-World Production Firewall throughput. They also include multi-bladed chassis to support the dynamic needs of growing networks, while offering the high reliability and performance needed for the future of cyber security.
Extending Cloud Support: New auto-scaling capabilities to support private and public cloud as well as support for the Google Cloud Platform.
We received the following industry accolades and announced the following partnerships:
CRN Channel Chief Award: CRN®, a brand of The Channel Company, named Check Point President Amnon Bar-Lev to its prestigious list of 2017 Channel Chiefs. The executives on this annual list represent top leaders in the IT channel who excel at driving growth and revenue in their organizations through channel partners.
Cyber Threat Alliance: Check Point was a founding member of the Cyber Threat Alliance, an independent organization. By bringing together industry competitors contributing their unique threat insights, the CTA builds a comprehensive view of important threat actors. With enriched understanding and enhanced protections against global attacks, members can better protect customers in real time and prioritize resources based on collective knowledge.
Check Point and Europol Collaborate to help companies avoid being held to ransom: Check Point is partnering with Europol, the European Union’s law enforcement agency, to offer both companies and individuals an overview about the growing threat of ransomware.
Check Point Earns U.S. Department of Defense Certifications for Cyber Security Appliances: the U.S. Department of Defense (DoD) has added four lines of Check Point security appliances to their Unified Capabilities Approved Products List (UC APL).
Our security research organization has also continued to expose vulnerabilities in today’s infrastructure, which included critical vulnerabilities in mobile equipment and applications, such as:
WhatsApp Web and Telegram Web Vulnerability – Check Point researchers unveiled a new vulnerability in WhatsApp Web & Telegram Web. By exploiting this vulnerability, attackers could completely take over user accounts, and access victims’ personal and group conversations, photos, videos and other shared files, contact lists, and more.
“Our vision for the future of cyber security is coming together quite nicely. We believe that a single unified system that prevents threats from entering the organization, combines real-time threat intelligence across all platforms and provides a single pane of management for the entire security policy is crucial for protecting every enterprise. Our focus on cloud, mobility and threat prevention is paying off and has contributed nicely to results this quarter. Check Point Infinity, the platform for the future of cyber security is taking that vision a step forward,” concluded Shwed.
Second Quarter Investor Conference Participation Schedule:
- Jefferies 2017 Global Technology, Media and Telecom Conference
May 10, 2017 – Miami, FL
- Needham & Co. Emerging Technology Conference
May 17, 2017 – New York, NY (Meetings Only)
- J.P. Morgan 45th Annual Technology, Media and Telecom Conference
May 24, 2017 – Boston, MA
- Cowen & Company 45th Annual Technology Media & Telecom Conference
May 31, 2017 – New York, NY
- Bank of America Merrill Lynch 2017 Global Technology Conference
June 6, 2017 – San Francisco, CA (Meetings Only)
- Stephens 2017 Spring Conference
June 7, 2017 – New York, NY (Meetings Only)
- 2017 Baird Global Consumer, Technology & Services Conference
June 8, 2017 – New York, NY (Meetings Only)
Members of Check Point’s management team are expected to present at these conferences and discuss the latest company strategies and initiatives. Check Point’s conference presentations are expected to be available via webcast on the company’s web site. To view these presentations and access the most updated information please visit the company’s web site at www.checkpoint.com/ir. The schedule is subject to change.
Conference Call and Webcast Information
Check Point will host a conference call with the investment community on April 27, 2017, at 8:30 AM ET/5:30 AM PT. To listen to the live webcast, please visit the website at: www.checkpoint.com/ir. A replay of the conference call will be available through May 4, 2017 on the company’s website or by telephone at +1.201.612.7415, replay ID number 13659723.
About Check Point Software Technologies Ltd.
Check Point Software Technologies Ltd. (www.checkpoint.com) is the largest network cyber security vendor globally, providing industry-leading solutions and protecting customers from cyberattacks with an unmatched catch rate of malware and other types of threats. Check Point offers a complete security architecture defending enterprises – from networks to mobile devices – in addition to the most comprehensive and intuitive security management. Check Point protects over 100,000 organizations of all sizes.
©2017 Check Point Software Technologies Ltd. All rights reserved
Legal Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally relate to future events or our future financial or operating performance. Forward-looking statements in this press release include, but are not limited to, statements related to our expectations regarding our products and solutions, including the Check Point Infinity platform; our continued focus on providing customers with an industry leading security platform designed to prevent cyber security attacks on their evolving infrastructure and our participation in investor conferences during the second quarter of 2017. Our expectations and beliefs regarding these matters may not materialize, and actual results or events in the future are subject to risks and uncertainties that could cause actual results or events to differ materially from those projected. These risks include our ability to continue to develop platform capabilities and solutions; customer acceptance and purchase of our existing solutions and new solutions; the market for IT security continuing to develop; competition from other products and services; and general market, political, economic and business conditions. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in our filings with the Securities and Exchange Commission, including our Annual Report on Form 20-F filed with the Securities and Exchange Commission on April 28, 2016. The forward-looking statements in this press release are based on information available to Check Point as of the date hereof, and Check Point disclaims any obligation to update any forward-looking statements, except as required by law.
Use of Non-GAAP Financial Information
In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Check Point uses non-GAAP measures of operating income, net income and earnings per diluted share, which are adjustments from results based on GAAP to exclude, as applicable, stock-based compensation expenses, amortization of intangible assets and acquisition related expenses and the related tax affects. Check Point’s management believes the non-GAAP financial information provided in this release is useful to investors’ understanding and assessment of Check Point’s ongoing core operations and prospects for the future. Historically, Check Point has also publicly presented these supplemental non-GAAP financial measures in order to assist the investment community to see the Company “through the eyes of management,” and thereby enhance understanding of its operating performance. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of the non-GAAP financial measures discussed in this press release to the most directly comparable GAAP financial measures is included with the financial statements contained in this press release. Management uses both GAAP and non-GAAP information in evaluating and operating business internally and as such has determined that it is important to provide this information to investors.