|
|
CHECK POINT SOFTWARE TECHNOLOGIES LTD.
|
(Translation of registrant's name into English)
|
5 Ha’solelim Street, Tel Aviv, Israel
(Address of principal executive offices)
|
INVESTOR CONTACT: |
MEDIA CONTACT: |
Kip E. Meintzer | Gil Messing |
Check Point Software Technologies | Check Point Software Technologies |
+1.650.628.2040 | +1.650.628.2260 |
ir@checkpoint.com | press@checkpoint.com |
• |
Total Revenue: $534 million, a 5 percent increase year over year
|
• |
Subscription Revenues: $190 million, a 13 percent increase year over year
|
• |
Deferred Revenues: $1,456 million, a 12 percent increase year over year
|
• |
GAAP Operating Income: $225 million, representing 42 percent of revenues
|
• |
Non-GAAP Operating Income: $261 million, representing 49 percent of revenues
|
• |
GAAP EPS: $1.40, a 1 percent decrease year over year
|
• |
Non-GAAP EPS: $1.65, a 1 percent increase year over year
|
• |
Total Revenue: $534 million compared to $509 million in the
third quarter of 2020, a 5 percent increase year over year.
|
• |
GAAP Operating Income: $225 million compared to $231 million
in the third quarter of 2020, representing 42 percent and 45 percent of revenues in the third quarter of 2021 and 2020, respectively.
|
• |
Non-GAAP Operating Income: $261 million compared to $265
million in the third quarter of 2020, representing 49 percent and 52 percent of revenues in the third quarter of 2021 and 2020, respectively.
|
• |
GAAP Taxes on Income: $47 million compared to $45 million in
the third quarter of 2020.
|
• |
GAAP Net Income: $187 million compared to $201 million in
the third quarter of 2020.
|
• |
Non-GAAP Net Income: $220 million compared to $231 million in
the third quarter of 2020.
|
• |
GAAP Earnings per Diluted share: $1.40 million compared to $1.42 million in the third quarter of 2020, a 1 percent decrease year over year.
|
• |
Non-GAAP Earnings per Diluted share: $1.65 compared to $1.64 in the third quarter of 2020, a 1 percent increase year over year.
|
• |
Deferred Revenues: As of September 30, 2021, deferred
revenues were $1,456 million compared to $1,302 million as of September 30, 2020, a 12 percent increase year over year.
|
• |
Cash Balances, Marketable Securities and Short-Term Deposits: $3,835 million as
of September 30, 2021, compared to $3,896 million as of September 30, 2020.
|
• |
Cash Flow: During the quarter we acquired Avanan, a world
leader in cloud email security, for $234 million net cash consideration. Cash flow from operations was $251 million, compared to $248 million in the third quarter of 2020. The operating cash flow for the quarter included a cost of $14 million related to the
acquisition of Avanan.
|
• |
Share Repurchase Program: During the third quarter of 2021,
we repurchased approximately 2.64 million shares at a total cost of approximately $325 million. During the quarter we announced a $2 billion expansion to the share repurchase program with authorization to repurchase up to $325 million
each quarter.
|
• |
RBC 2021 Virtual Technology, Internet, Media &
Telecommunications Conference
November 16-17, 2021 – Virtual Fireside Chat & 1x1’s |
• |
Wells Fargo 2021 Virtual Technology Conference
November 30, 2021 – Virtual 1x1’s |
• |
Credit Suisse 2021 Technology Summit
December 1-2, 2021 – 1x1’s |
• |
NASDAQ 2021 Technology Conference
December 2-3, 2021 – Virtual Fireside Chat & 1x1’s |
• |
UBS 2021 Technology Conference
December 6, 2021 – Virtual Fireside Chat & 1x1’s |
• |
Raymond James 2021 Technology Conference
December 7, 2021 – Virtual 1x1’s |
• |
Barclays 2021 Technology Conference
December 8, 2021 – Virtual Fireside Chat & 1x1’s |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
Revenues:
|
||||||||||||||||
Products and licenses
|
$
|
119.1
|
$
|
120.2
|
$
|
347.5
|
$
|
353.0
|
||||||||
Security subscriptions
|
190.0
|
168.8
|
551.1
|
491.6
|
||||||||||||
Total revenues from products and security subscriptions
|
309.1
|
289.0
|
898.6
|
844.6
|
||||||||||||
Software updates and maintenance
|
224.9
|
220.0
|
669.1
|
656.5
|
||||||||||||
Total revenues
|
534.0
|
509.0
|
1,567.7
|
1,501.1
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Cost of products and licenses
|
25.9
|
22.9
|
70.7
|
66.3
|
||||||||||||
Cost of security subscriptions
|
9.3
|
5.9
|
26.0
|
18.5
|
||||||||||||
Total cost of products and security subscriptions
|
35.2
|
28.8
|
96.7
|
84.8
|
||||||||||||
Cost of Software updates and Maintenance
|
25.8
|
23.3
|
76.7
|
70.5
|
||||||||||||
Amortization of technology
|
2.2
|
1.7
|
5.6
|
4.9
|
||||||||||||
Total cost of revenues
|
63.2
|
53.8
|
179.0
|
160.2
|
||||||||||||
Research and development
|
71.3
|
61.3
|
207.2
|
185.9
|
||||||||||||
Selling and marketing
|
148.3
|
135.8
|
437.2
|
419.2
|
||||||||||||
General and administrative
|
26.7
|
26.8
|
82.7
|
83.0
|
||||||||||||
Total operating expenses
|
309.5
|
277.7
|
906.1
|
848.3
|
||||||||||||
Operating income
|
224.5
|
231.3
|
661.6
|
652.8
|
||||||||||||
Financial income, net
|
9.2
|
14.4
|
32.2
|
52.4
|
||||||||||||
Income before taxes on income
|
233.7
|
245.7
|
693.8
|
705.2
|
||||||||||||
Taxes on income
|
46.7
|
45.0
|
137.9
|
129.4
|
||||||||||||
Net income
|
$
|
187.0
|
$
|
200.7
|
$
|
555.9
|
$
|
575.8
|
||||||||
Basic earnings per share
|
$
|
1.41
|
$
|
1.44
|
$
|
4.17
|
$
|
4.06
|
||||||||
Number of shares used in computing basic earnings per share
|
132.6
|
139.3
|
133.3
|
141.8
|
||||||||||||
Diluted earnings per share
|
$
|
1.40
|
$
|
1.42
|
$
|
4.13
|
$
|
3.99
|
||||||||
Number of shares used in computing diluted earnings per share
|
133.4
|
141.1
|
134.4
|
144.4
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
Revenues
|
$
|
534.0
|
$
|
509.0
|
$
|
1,567.7
|
$
|
1,501.1
|
||||||||
Non-GAAP operating income
|
261.3
|
265.0
|
764.7
|
749.4
|
||||||||||||
Non-GAAP net income
|
219.8
|
230.8
|
647.9
|
661.7
|
||||||||||||
Diluted Non-GAAP Earnings per share
|
$
|
1.65
|
$
|
1.64
|
$
|
4.82
|
$
|
4.58
|
||||||||
Number of shares used in computing diluted Non-GAAP earnings per share
|
133.4
|
141.1
|
134.4
|
144.4
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
GAAP operating income
|
$
|
224.5
|
$
|
231.3
|
$
|
661.6
|
$
|
652.8
|
||||||||
Stock-based compensation (1)
|
31.2
|
29.1
|
87.7
|
83.5
|
||||||||||||
Amortization of intangible assets and acquisition related expenses (2)
|
5.6
|
4.6
|
15.4
|
13.1
|
||||||||||||
Non-GAAP operating income
|
$
|
261.3
|
$
|
265.0
|
$
|
764.7
|
$
|
749.4
|
||||||||
GAAP net income
|
$
|
187.0
|
$
|
200.7
|
$
|
555.9
|
$
|
575.8
|
||||||||
Stock-based compensation (1)
|
31.2
|
29.1
|
87.7
|
83.5
|
||||||||||||
Amortization of intangible assets and acquisition related expenses (2)
|
5.6
|
4.6
|
15.4
|
13.1
|
||||||||||||
Taxes on the above items (3)
|
(4.0
|
)
|
(3.6
|
)
|
(11.1
|
)
|
(10.7
|
)
|
||||||||
Non-GAAP net income
|
$
|
219.8
|
$
|
230.8
|
$
|
647.9
|
$
|
661.7
|
||||||||
Diluted GAAP Earnings per share
|
$
|
1.40
|
$
|
1.42
|
$
|
4.13
|
$
|
3.99
|
||||||||
Stock-based compensation (1)
|
0.24
|
0.21
|
0.66
|
0.58
|
||||||||||||
Amortization of intangible assets and acquisition related expenses (2)
|
0.04
|
0.03
|
0.11
|
0.09
|
||||||||||||
Taxes on the above items (3)
|
(0.03
|
)
|
(0.02
|
)
|
(0.08
|
)
|
(0.08
|
)
|
||||||||
Diluted Non-GAAP Earnings per share
|
$
|
1.65
|
$
|
1.64
|
$
|
4.82
|
$
|
4.58
|
||||||||
Number of shares used in computing diluted Non-GAAP earnings per share
|
133.4
|
141.1
|
134.4
|
144.4
|
||||||||||||
(1) Stock-based compensation:
|
||||||||||||||||
Cost of products and licenses
|
$
|
0.1
|
$
|
0.1
|
$
|
0.3
|
$
|
0.3
|
||||||||
Cost of software updates and maintenance
|
1.2
|
1.1
|
3.2
|
3.0
|
||||||||||||
Research and development
|
7.8
|
6.9
|
21.5
|
17.2
|
||||||||||||
Selling and marketing
|
12.7
|
10.2
|
31.5
|
26.8
|
||||||||||||
General and administrative
|
9.4
|
10.8
|
31.2
|
36.2
|
||||||||||||
31.2
|
29.1
|
87.7
|
83.5
|
|||||||||||||
(2) Amortization of intangible assets and acquisition related expenses:
|
||||||||||||||||
Amortization of technology-cost of revenues
|
2.2
|
1.7
|
5.6
|
4.9
|
||||||||||||
Research and development
|
1.3
|
1.1
|
3.9
|
2.8
|
||||||||||||
Selling and marketing
|
2.1
|
1.8
|
5.9
|
5.4
|
||||||||||||
5.6
|
4.6
|
15.4
|
13.1
|
|||||||||||||
(3) Taxes on the above items
|
(4.0
|
)
|
(3.6
|
)
|
(11.1
|
)
|
(10.7
|
)
|
||||||||
Total, net
|
$
|
32.8
|
$
|
30.1
|
$
|
92.0
|
$
|
85.9
|
September 30,
|
December 31,
|
|||||||
2021
|
2020
|
|||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
314.9
|
$
|
255.7
|
||||
Marketable securities and short-term deposits
|
1,421.7
|
1,432.0
|
||||||
Trade receivables, net
|
324.0
|
540.8
|
||||||
Prepaid expenses and other current assets
|
49.2
|
50.1
|
||||||
Total current assets
|
2,109.8
|
2,278.6
|
||||||
Long-term assets:
|
||||||||
Marketable securities
|
2,098.0
|
2,311.9
|
||||||
Property and equipment, net
|
84.5
|
88.1
|
||||||
Deferred tax asset, net
|
38.6
|
34.4
|
||||||
Goodwill and other intangible assets, net
|
1,255.1
|
1,040.7
|
||||||
Other assets
|
84.7
|
85.5
|
||||||
Total long-term assets
|
3,560.9
|
3,560.6
|
||||||
Total assets
|
$
|
5,670.7
|
$
|
5,839.2
|
Current liabilities:
|
||||||||
Deferred revenues
|
$
|
1,058.5
|
$
|
1,108.6
|
||||
Trade payables and other accrued liabilities
|
413.2
|
435.2
|
||||||
Total current liabilities
|
1,471.7
|
1,543.8
|
||||||
Long-term liabilities:
|
||||||||
Long-term deferred revenues
|
397.2
|
373.3
|
||||||
Income tax accrual
|
473.0
|
422.8
|
||||||
Other long-term liabilities
|
28.8
|
33.1
|
||||||
899.0
|
829.2
|
|||||||
Total liabilities
|
2,370.7
|
2,373.0
|
||||||
Shareholders’ equity:
|
||||||||
Share capital
|
0.8
|
0.8
|
||||||
Additional paid-in capital
|
2,243.2
|
2,028.4
|
||||||
Treasury shares at cost
|
(10,231.6
|
)
|
(9,319.0
|
)
|
||||
Accumulated other comprehensive gain
|
16.4
|
40.7
|
||||||
Retained earnings
|
11,271.2
|
10,715.3
|
||||||
Total shareholders’ equity
|
3,300.0
|
3,466.2
|
||||||
Total liabilities and shareholders’ equity
|
$
|
5,670.7
|
$
|
5,839.2
|
||||
Total cash and cash equivalents, marketable securities and short-term deposits
|
$
|
3,834.6
|
$
|
3,999.6
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
Cash flow from operating activities:
|
||||||||||||||||
Net income
|
$
|
187.0
|
$
|
200.7
|
$
|
555.9
|
$
|
575.8
|
||||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||||||
Depreciation of property and equipment
|
4.8
|
4.8
|
15.0
|
13.8
|
||||||||||||
Amortization of intangible assets
|
2.6
|
2.1
|
6.8
|
6.1
|
||||||||||||
Stock-based compensation
|
31.2
|
29.1
|
87.7
|
83.5
|
||||||||||||
Realized (gain) loss on marketable securities
|
0.5
|
(2.2
|
)
|
(1.0
|
)
|
(2.9
|
)
|
|||||||||
Decrease in trade and other receivables, net
|
44.5
|
34.2
|
219.8
|
210.3
|
||||||||||||
Increase (decrease) in deferred revenues, trade payables and other accrued liabilities
|
(23.1
|
)
|
(22.9
|
)
|
0.9
|
(39.9
|
)
|
|||||||||
Deferred income taxes, net
|
3.2
|
1.8
|
3.7
|
12.3
|
||||||||||||
Net cash provided by operating activities
|
250.7
|
247.6
|
888.8
|
859.0
|
||||||||||||
Cash flow from investing activities:
|
||||||||||||||||
Payment in conjunction with acquisitions, net of acquired cash
|
(219.7
|
)
|
(23.1
|
)
|
(219.7
|
)
|
(23.1
|
)
|
||||||||
Investment in property and equipment
|
(4.3
|
)
|
(4.5
|
)
|
(11.4
|
)
|
(16.8
|
)
|
||||||||
Net cash used in investing activities
|
(224.0
|
)
|
(27.6
|
)
|
(231.1
|
)
|
(39.9
|
)
|
||||||||
Cash flow from financing activities:
|
||||||||||||||||
Proceeds from issuance of shares upon exercise of options
|
140.0
|
47.4
|
187.5
|
74.0
|
||||||||||||
Purchase of treasury shares
|
(325.0
|
)
|
(325.0
|
)
|
(974.6
|
)
|
(974.7
|
)
|
||||||||
Payments related to shares withheld for taxes
|
(0.7
|
)
|
(0.6
|
)
|
(6.5
|
)
|
(5.4
|
)
|
||||||||
Net cash used in financing activities
|
(185.7
|
)
|
(278.2
|
)
|
(793.6
|
)
|
(906.1
|
)
|
||||||||
Unrealized gain (loss) on marketable securities, net
|
(8.4
|
)
|
(4.8
|
)
|
(29.1
|
)
|
34.7
|
|||||||||
Decrease in cash and cash equivalents, marketable securities and short term deposits
|
(167.4
|
)
|
(63.0
|
)
|
(165.0
|
)
|
(52.3
|
)
|
||||||||
Cash and cash equivalents, marketable securities and short term deposits at the beginning of the period
|
4,002.0
|
3,959.4
|
3,999.6
|
3,948.7
|
||||||||||||
Cash and cash equivalents, marketable securities and short term deposits at the end of the period
|
$
|
3,834.6
|
$
|
3,896.4
|
$
|
3,834.6
|
$
|
3,896.4
|
CHECK POINT SOFTWARE TECHNOLOGIES LTD.
|
|||
|
By:
|
/s/ Tal Payne | |
Tal Payne | |||
Chief Financial Officer & Chief Operating Officer | |||