CHECK POINT SOFTWARE TECHNOLOGIES REPORTS RECORD SECOND QUARTER 2010 FINANCIAL RESULTS

  • Revenue: $261.1 million, representing a 17 per cent increase year over year
  • Product Revenues: $103.9 million, representing a 25 per cent increase year over year
  • Non-GAAP Operating Income: $144.7 million, representing a

24 per cent increase year over year or 55 per cent of revenues versus 52 per cent a year ago

  • Non-GAAP EPS: $0.58, representing a 21 per cent increase year over year
    • Cash Flow from Operations: $148.9 million, representing a 32    per cent increase year over year

 
CALGARY, AB – July 21, 2010 – Check Point® Software Technologies Ltd. (NASDAQ: CHKP), the worldwide leader in securing the Internet, today announced record financial results for the second quarter ended June 30, 2010.
“We experienced strong sales growth driven by 25% growth in product revenues. This enabled us to exceed our revenue projections and achieve the top-end of our earning per share projections,” said Gil Shwed chairman and chief executive officer of Check Point Software Technologies. “The growth in revenues came from all main product lines and geographies.”
 
Financial Highlights for the Second Quarter of 2010

  • Total Revenues: $261.1 million, an increase of 17 per cent, compared to $223.6 million in the second quarter of 2009.
  • GAAP Operating Income: $122.1 million, an increase of 41 per cent, compared to $86.7 million in the second quarter of 2009.
  • Non-GAAP Operating Income: $144.7 million, an increase of 24 per cent, compared to $116.4 million in the second quarter of 2009. Non-GAAP operating margin was 55 per cent, compared to 52 per cent in the second quarter of 2009.
  • GAAP Net Income and Earnings per Diluted Share: GAAP net income was $102.9 million, an increase of 36 percent, compared to $75.6 million in the second quarter of 2009. GAAP earnings per diluted share was $0.48, an increase of 33 percent, compared to $0.36 in the second quarter of 2009.
  • Non-GAAP Net Income and Earnings per Diluted Share: Non-GAAP net income was $122.4 million, an increase of 21 percent, compared to $100.9 million in the second quarter of 2009. Non-GAAP EPS was $0.58, an increase of 21 per cent compared to $0.48 in the second quarter of 2009.
  • Deferred Revenues: As of June 30, 2010, we had deferred revenues of $414.8 million, an increase of 15 percent, compared to $362.1 million as of June 30, 2009.
  • Cash Flow: Cash flow from operations was $148.9 million, an increase of 32 per cent compared to $112.7 million in the second quarter of 2009.
  • Share Repurchase Program: During the second quarter of 2010, we repurchased 1.5 million shares at a total cost of $50 million.
  • Cash Balances and Marketable Securities: $2,141 million as of June 30, 2010, an increase of $511 million compared to $1,630 million as of June 30, 2009.

 
Recent Business Highlights Include:

  • Introduction of Check Point Data Loss Prevention (DLP) solution – A new product category of network-based solutions that prevents leaks of sensitive data to unintended recipients outside the organization.
  • Acquisition of Liquid Machines – Acquired the Boston based company, a leader in data security with award-winning products for document encryption, secure sharing and protection of corporate data. The acquisition broadens Check Point’s extensive data security portfolio.
  • The New SmartEvent Software Blade – A unified security management solution for real-time event visibility across multiple security systems, including Firewall, Intrusion Prevention (IPS), Data Loss Prevention (DLP) and endpoints.
  • Significant Antivirus and URL Filtering Performance Improvements – Innovative streaming technology that dramatically increases software blade performance by up to 80 times for these operations.
  • Higher Performance for Entry Level & Mid-Range Appliances – Introduced new entry level appliances with Gigabit performance for under $800. Also, expanded performance for our existing entry level and mid-range appliances (UTM-1 130, 270, 570, 1070 and 2070 series) with up to four times firewall performance and four times connections per second performance improvement.
  • New Free Firewall for Consumers – The new edition of ZoneAlarm Free Firewall includes DefenseNet services that analyze malware automatically through our cloud service. The new ZoneAlarm edition already won key industry awards this quarter (see below).

 
Check Point Accolades:

  • PC Magazine Editors’ Choice Award – Check Point ZoneAlarm Free Firewall
  • Five out of five stars from CNET – Check Point ZoneAlarm Free Firewall
  • Ten Best Web Support Sites of 2010 – Recognized by The Association of Support Professionals (ASP), an organization that focused on excellence in online service and customer support.
  • Network Security Vendor of the Year – Awarded by consulting firm, Frost & Sullivan in Malaysia
  • The Customer Care Award – Computerworld Singapore in the Firewall/VPN Solutions category
  • Best Product Awards – Check Point UTM-1 appliances, Check Point Firewall/VPN Blades and IPS Software Blades from Computerworld magazine in Hong Kong
  • Editor’s Choice Award – Check Point UTM-1 Edge appliances selected by SMBWorld in the “SMB Security Solution” category
  • IT Product of 2010 Award – Check Point Abra, the innovative secure virtual workspace announced in the first quarter, selected by Computerworld magazine in the Czech Republic

 
Mr. Shwed concluded, “Our record second quarter results were a nice conclusion to the first half of the year. We continued to execute and deliver top and bottom line growth while further expanding our product portfolio.”
 
Third Quarter Investor Conference Participation Schedule:

  • 12th Annual Pacific Crest Technology Leadership Forum

August 9, 2010 – Vail, CO

  • Oppenheimer Annual Technology, Media & Telecommunications Conference

August 11, 2010 – Boston, MA

  • Morgan Keegan’s 2nd Annual Technology Conference

August 12, 2010 – New York, NY

  • Citi’s 2010 Global Technology Conference

September 7, 2010 – New York, NY

  • Deutsche Bank’s 2010 Technology Conference

September 14, 2010 – San Francisco, CA
Members of Check Point’s management team will present at these conferences and will discuss the latest company strategies and initiatives. Check Point’s conference presentations are expected to be available via webcast at the company’s web site. To view these presentations and access the most updated information on presenters and the schedule, please visit the Investor Relations section of the company’s web site at http://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 July 21, 2010 at 8:30 AM ET/5:30 AM PT. To listen to the live webcast, please visit Check Point’s website at http://www.checkpoint.com/ir. A replay of the conference call will be available through August 5, 2010 at the company’s website http://www.checkpoint.com/ir or by telephone at
+1 201.612.7415, passcode # 353499, account # 215.

Leave a Reply