CHECK POINT SOFTWARE TECHNOLOGIES REPORTS RECORD 2011 SECOND QUARTER FINANCIAL RESULTS

  • Total Revenue: $300.6 million, representing a 15 per cent increase year over year
  • Non-GAAP Operating Income: $171.0 million, representing 57 per cent of revenues
  • Non-GAAP EPS: $0.68, representing a 17 per cent increase year over year

 
CALGARY, AB – July 18, 2011 – Check Point® Software Technologies Ltd. (NASDAQ: CHKP), the worldwide leader in securing the Internet, today announced its financial results for the second quarter ending June 30, 2011.
“The first half of 2011 produced great results. We continued to outperform our projections in the second quarter.  These good results are driven by increased sales of enterprise gateways with more software blades attached.  In particular, our IPS and Application Control software blades have shown significant growth in the second quarter,” said Gil Shwed, founder, chairman, and chief executive officer of Check Point Software Technologies.
 
Financial Highlights:

  • Total Revenue: $300.6 million, an increase of 15 per cent, compared to $261.1 million in the second quarter of 2010.
  • GAAP Operating Income: $150.0 million, an increase of 23 per cent, compared to $122.1 million in the second quarter of 2010. GAAP operating margin was 50 per cent, compared to 47 per cent in the second quarter of 2010.
  • Non-GAAP Operating Income: $171.0 million, an increase of 18 per cent, compared to $144.7 million in the second quarter of 2010. Non-GAAP operating margin was 57 per cent, compared to 55 per cent in the second quarter of 2010.
  • GAAP Net Income and Earnings per Diluted Share: GAAP net income was $128.0 million, an increase of 24 per cent, compared to $102.9 million in the second quarter of 2010. GAAP earnings per diluted share were $0.60, an increase of 25 per cent, compared to $0.48 in the second quarter of 2010.
  • Non-GAAP Net Income and Earnings per Diluted Share: Non-GAAP net income was $145.5 million, an increase of 19 per cent, compared to $122.4 million in the second quarter of 2010. Non-GAAP earnings per diluted share were $0.68, an increase of 17 per cent, compared to $0.58 in the second quarter of 2010.
  • Deferred Revenues: As of June 30, 2011, the company had deferred revenues of $457.0 million, an increase of 10 per cent, compared to $414.8 million as of June 30, 2010.
  • Cash Flow: Cash flow from operations was $175.5 million, an increase of 18 per cent, compared to $148.9 million in the second quarter of 2010.
  • Share Repurchase Program: During the second quarter of 2011, the company repurchased 1.38 million shares at a total cost of $75 million.
  • Cash Balances, Marketable Securities and Short Term Deposits: $2,689.8 million as of June 30, 2011, an increase of $548.9 million, compared to $2,140.9 million as of June 30, 2010.

For information regarding the Non-GAAP financial measures discussed in this release, please see “Use of Non-GAAP Financial Information” and “Reconciliation of GAAP to Non-GAAP Financial Information.”
 
Business Highlights:
Check Point has continued to deliver advanced and award-winning solutions that have earned the trust of customers from around the world. The success of this quarter continues to validate the company’s product innovation and continued growth as a pure-play security company.  In addition, significant recent developments in Check Point’s business include the introduction of new products and the promotion of an officer:
 

  • ZoneAlarm SocialGuard – Enables parents to protect their children against social threats on Facebook, such as online predators, cyberbullies, hacked accounts and malicious links. The product has received “Five Stars” from CNET and a “Highly Recommended” rating from PC Magazine.
  • ZoneAlarm 2012 Suite – Features new cloud-enabled security with parental controls and advanced antivirus capabilities that utilize ZoneAlarm DefenseNet™, a cloud-based service that detects over 50,000 new applications and threats daily, to silently stop existing and emerging attacks.
  • Promotion of Amnon Bar-Lev, Head of Global Field Operations to President – Check Point announced today that Amnon Bar-Lev has been promoted to President of Check Point Software Technologies, effective immediately. Amnon joined Check Point in 2005 and has led the company’s field organization since 2006. During that period, Check Point’s revenues have more than doubled to approximately $1.2B over the past four quarters. Amnon will continue to head the company’s customer facing functions including sales, marketing, business development and technical services.  He will continue to report to Gil Shwed, founder, chairman and CEO.

 
Recent Industry Accolades From Across the Globe:

  • NSS Labs Group Firewall Test – Check Point was the only vendor to pass the NSS Labs independent Firewall Group Test, achieving 100 per cent in security effectiveness and earning the only “Recommend” rating in the initial comparative review.
  • Frost & Sullivan Asia Pacific – Check Point was recognized by the industry analyst firm as the 2011 Network Security Vendor of the Year.
  • Association of Support Professionals – Check Point was a winner of the “Top Ten Best Web Support Sites of 2011” for a third year.
  • SC Magazine UK, Best Secure Virtualization Solution – Check Point Security Gateway VE.
  • Computerworld Czech Republic, IT Product of 2011 – Check Point Application Control Software Blade.
  • Computerworld Hong Kong Awards – Named best UTM, Firewall/VPN and Intrusion Prevention solutions.
  • Electronic Times, 2011 Hit Products in Korea – Check Point Application Control Software Blade.
  • Computerworld Singapore, Customer Care Awards – Check Point Firewall/VPN.

 
In addition, Check Point’s founder, chairman and CEO, Gil Shwed, along with Tal Payne, CFO, and the company’s board of directors, rang the NASDAQ opening bell on June 28, 2011, commemorating the company’s fifteenth anniversary since its initial public offering in 1996.
Shwed concluded, “Our security focus is continuing to pay off. I’m pleased to see that customers are adopting more software blades to enhance their threat protection and raise the level of security in their organization.  We will continue to deliver on our 3D security vision combining policy, people and enforcement to provide the best protection for our customers.”
 
Third Quarter Investor Conference Participation Schedule: 

  • Pacific Crest Internet,  Media and Telecommunications Conference
    August 8, 2011 – Vail, CO
  • Citi Global Technology, Media and Telecommunications Conference
    September 8, 2011 – NY, NY
  • Deutsche Bank Technology, Media and Telecommunications Conference
    September 14, 2011 – Las Vegas, NV

 
Members of Check Point’s management team will 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 hosted a conference call with the investment community on July 18, 2011 at 8:30 AM ET/5:30 AM PT.  To listen to the live webcast, please visit Check Point’s website at: www.checkpoint.com/ir. A replay of the conference call will be available through July 25, 2011 at the company’s website www.checkpoint.com/ir or by telephone at +1.201.612.7415, replay ID number 375092, account # 215.

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