Investors: Kip E. Meintzer
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Media: Gil Messing
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Check Point Software Technologies
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Check Point Software Technologies
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+1.650.628.2040
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+1.650.628.2260
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ir@checkpoint.com
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press@checkpoint.com
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• |
Total Revenues: $508 million, a 4 percent increase year over year
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• |
Deferred Revenues: $1,458 million, an 8 percent increase year over year
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• |
GAAP Operating Income: $215 million, representing 42 percent of revenues
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• |
Non-GAAP Operating Income: $246 million, representing 49 percent of revenues
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• |
GAAP EPS: $1.33, an 8 percent increase year over year
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• |
Non-GAAP EPS: $1.54, a 9 percent increase year over year
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Total Revenues: $508 million compared to $486 million in the first quarter of 2020, a 4 percent increase year over year.
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• |
GAAP Operating Income: $215 million compared to $201 million in the first quarter of 2020, representing 42 percent and 41 percent of revenues in the first quarter of 2021 and 2020, respectively.
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• |
Non-GAAP Operating Income: $246 million compared to $231 million in the first quarter of 2020, representing 49 percent and 48 percent of revenues in the first quarter of 2021 and 2020,
respectively.
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• |
GAAP Net Income & Earnings per Diluted share: GAAP net income was $183 million compared to $179 million in the first quarter of 2020. GAAP earnings per diluted share were $1.33 compared to
$1.23 in the first quarter of 2020, an 8 percent increase year over year.
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Non-GAAP Net Income & Earnings per Diluted share: Non-GAAP net income was $211 million compared to $206 million in the first quarter of 2020. Non-GAAP earnings per diluted share were $1.54
compared to $1.42 in the first quarter of 2020, a 9 percent increase year over year.
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Deferred Revenues: As of March 31, 2021, deferred revenues were $1,458 million compared to $1,349 million as of March 31, 2020, an 8 percent increase year over year.
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• |
Cash Balances, Marketable Securities & Short Term Deposits: $4,063 million as of March 31, 2021, compared to $4,000 million as of December 31, 2020.
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Cash Flow: Cash flow from operations of $375 million compared to $359 million in the first quarter of 2020.
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Share Repurchase Program: During the first quarter of 2021, the company repurchased approximately 2.7 million shares at a total cost of approximately $325 million.
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CloudGuard: Check Point extended the capabilities of its unified CloudGuard Cloud Native Security platform with the launch of new CloudGuard Application Security (AppSec), a fully automated
web application and API protection solution, enabling enterprises to secure their cloud-native applications against both known and zero-day attacks. CloudGuard AppSec, part of the CloudGuard Workload Protection capabilities, eliminates
the need for manual tuning and high rate of false-positive alerts associated with legacy Web Application Firewalls, using contextual AI to prevent attacks from impacting cloud applications and enabling enterprises to take full advantage
of cloud speed and agility.
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• |
Harmony: Securing the new ‘work from anywhere’ environment is a leading priority for enterprises, as 81% have adopted mass remote working, and 74% plan to do so permanently. To address this
shift we launched Check Point Harmony, the first unified solution to enable secure connectivity to any resource anywhere and give total endpoint protection for users on any device. Harmony is designed to secure both corporate and BYOD
devices, and internet connections from known and zero-day attacks, while giving Zero-Trust access to business applications in a single, easy to manage solution.
As a core component of the Harmony product suite, Check Point introduced Harmony Browse, a web security solution designed to protect against zero-day malware, phishing and credential theft directly from the browser. Harmony Browse can enable workers to safely browse the internet no matter where they are. It protects organizations and their employees from web-based threats by inspecting 100% of SSL traffic using an innovative nano agent deployed with the browser. |
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Quantum: During the quarter we expanded our core network security family, extending our line of gateways to support SMBs of any size and expand capacity for our management and hyperscale
solutions:
In February, we announced the availability of a complete Quantum Spark™ series of security gateways for small and medium size businesses. The range of six gateways sets new standards of protection against the most advanced cyber-attacks for SMBs with high threat prevention performance (2Gb), giving unrivalled ease of deployment (automatic set up in under 60 seconds) and intuitive on-the-go management. |
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16th Annual Needham Virtual Technology & Media Conference”
May 17, 2021 – Virtual 1x1’s |
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J.P. Morgan 49th Annual Technology, Media and Telecom Conference
May 24 - 26 2021 – Virtual Fireside Chat & 1x1’s |
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Cowen 49th Annual TMT Conference
June 1-3, 2021 – Virtual Fireside Chat & 1x1’s |
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Evercore ISI TMT Conference
June 7, 2021 – Virtual 1x1’s |
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2021 Baird Global Consumer, Technology & Services Conference
June 8, 2021 – Virtual 1x1’s |
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Bank of America Merrill Lynch 2021 Global Technology Conference
June 9-10, 2021 – Virtual 1x1’s |
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BTIG SASE Forum
June 14, 2021 – Virtual 1x1’s |
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FBN Silicon Valley Virtual Tour
June 14, 2021 – Virtual Q&A |
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Mizuho 3rd Annual Cybersecurity Summit
June 15, 2021 – Virtual Q&A |
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Nasdaq 42nd Investor Conference
June 15 - 17, 2021 – Virtual 1x1’s |
Three Months Ended
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||||||||
March 31,
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||||||||
2021
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2020
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|||||||
Revenues:
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||||||||
Products and licenses
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$
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109.3
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$
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110.2
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||||
Security subscriptions
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177.4
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158.8
|
||||||
Total revenues from products and security subscriptions
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286.7
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269.0
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||||||
Software updates and maintenance
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220.9
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217.5
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||||||
Total revenues
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507.6
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486.5
|
||||||
Operating expenses:
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||||||||
Cost of products and licenses
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21.6
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20.9
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||||||
Cost of security subscriptions
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8.0
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6.5
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||||||
Total cost of products and security subscriptions
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29.6
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27.4
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||||||
Cost of software updates and
maintenance
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25.3
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23.2
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||||||
Amortization of technology
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1.7
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1.6
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||||||
Total cost of revenues
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56.6
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52.2
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||||||
Research and development
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68.4
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62.2
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||||||
Selling and marketing
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140.0
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143.0
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||||||
General and administrative
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27.8
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28.5
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||||||
Total operating expenses
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292.8
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285.9
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||||||
Operating income
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214.8
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200.6
|
||||||
Financial income, net
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12.6
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19.3
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||||||
Income before taxes on income
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227.4
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219.9
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||||||
Taxes on income
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44.5
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41.2
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||||||
Net income
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$
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182.9
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$
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178.7
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Basic earnings per share
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$
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1.35
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$
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1.24
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Number of shares used in computing basic earnings per share
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136.0
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144.2
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||||||
Diluted earnings per share
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$
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1.33
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$
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1.23
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||||
Number of shares used in computing diluted earnings per share
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137.3
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145.4
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Three Months Ended
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||||||||
March 31,
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||||||||
2021
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2020
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|||||||
Revenues
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$
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507.6
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$
|
486.5
|
||||
Non-GAAP operating income
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246.3
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231.2
|
||||||
Non-GAAP net income
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211.2
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205.9
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||||||
Diluted Non-GAAP Earnings per share
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$
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1.54
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$
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1.42
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Number of shares used in computing diluted Non-GAAP earnings per share
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137.3
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145.4
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Three Months Ended
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||||||||
March 31,
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||||||||
2021
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2020
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|||||||
GAAP operating income
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$
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214.8
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$
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200.6
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||||
Stock-based compensation (1)
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26.6
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26.4
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||||||
Amortization of intangible assets and acquisition related expenses (2)
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4.9
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4.2
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Non-GAAP operating income
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$
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246.3
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$
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231.2
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||||
GAAP net income
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$
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182.9
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$
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178.7
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||||
Stock-based compensation (1)
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26.6
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26.4
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||||||
Amortization of intangible assets and acquisition related expenses (2)
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4.9
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4.2
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||||||
Taxes on the above items (3)
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(3.2
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)
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(3.4
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)
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Non-GAAP net income
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$
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211.2
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$
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205.9
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||||
Diluted GAAP Earnings per share
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$
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1.33
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$
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1.23
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Stock-based compensation (1)
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0.19
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0.18
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Amortization of intangible assets and acquisition related expenses (2)
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0.04
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0.03
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||||||
Taxes on the above items (3)
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(0.02
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)
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(0.02
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)
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Diluted Non-GAAP Earnings per share
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$
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1.54
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$
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1.42
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Number of shares used in computing diluted Non-GAAP earnings per share
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137.3
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145.4
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(1) Stock-based compensation:
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||||||||
Cost of products and licenses
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$
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0.1
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$
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0.1
|
||||
Cost of software updates and maintenance
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0.9
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0.9
|
||||||
Research and development
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6.5
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4.8
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||||||
Selling and marketing
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8.3
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7.8
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||||||
General and administrative
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10.8
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12.8
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||||||
26.6
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26.4
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|||||||
(2) Amortization of intangible assets and acquisition related expenses:
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||||||||
Amortization of technology-cost of revenues
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1.7
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1.6
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||||||
Research and development
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1.3
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0.8
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||||||
Selling and marketing
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1.9
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1.8
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||||||
4.9
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4.2
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|||||||
(3) Taxes on the above items
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(3.2
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)
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(3.4
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)
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Total, net
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$
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28.3
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$
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27.2
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March 31,
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December 31,
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|||||||
2021
|
2020
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Current assets:
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||||||||
Cash and cash equivalents
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$
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561.9
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$
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255.7
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||||
Marketable securities and short-term deposits
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1,314.1
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1,432.0
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||||||
Trade receivables, net
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350.2
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540.8
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||||||
Prepaid expenses and other current assets
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44.2
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50.1
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||||||
Total current assets
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2,270.4
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2,278.6
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Long-term assets:
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||||||||
Marketable securities
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2,186.9
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2,311.9
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Property and equipment, net
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87.2
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88.1
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||||||
Deferred tax asset, net
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40.2
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34.4
|
||||||
Goodwill and other intangible assets, net
|
1,038.6
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1,040.7
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||||||
Other assets
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79.1
|
85.5
|
||||||
Total long-term assets
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3,432.0
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3,560.6
|
||||||
Total assets
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$
|
5,702.4
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$
|
5,839.2
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Current liabilities:
|
||||||||
Deferred revenues
|
$
|
1,078.8
|
$
|
1,108.6
|
||||
Trade payables and other accrued liabilities
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417.7
|
435.2
|
||||||
Total current liabilities
|
1,496.5
|
1,543.8
|
||||||
Long-term liabilities:
|
||||||||
Long-term deferred revenues
|
378.9
|
373.3
|
||||||
Income tax accrual
|
426.9
|
422.8
|
||||||
Other long-term liabilities
|
30.8
|
33.1
|
||||||
836.6
|
829.2
|
|||||||
Total liabilities
|
2,333.1
|
2,373.0
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||||||
Shareholders’ equity:
|
||||||||
Share capital
|
0.8
|
0.8
|
||||||
Additional paid-in capital
|
2,078.0
|
2,028.4
|
||||||
Treasury shares at cost
|
(9,633.8
|
)
|
(9,319.0
|
)
|
||||
Accumulated other comprehensive gain
|
26.1
|
40.7
|
||||||
Retained earnings
|
10,898.2
|
10,715.3
|
||||||
Total shareholders’ equity
|
3,369.3
|
3,466.2
|
||||||
Total liabilities and shareholders’ equity
|
$
|
5,702.4
|
$
|
5,839.2
|
||||
Total cash and cash equivalents, marketable securities and short-term deposits
|
$
|
4,062.9
|
$
|
3,999.6
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2021
|
2020
|
|||||||
Cash flow from operating activities:
|
||||||||
Net income
|
$
|
182.9
|
$
|
178.7
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation of property and equipment
|
4.7
|
4.6
|
||||||
Amortization of intangible assets
|
2.1
|
2.0
|
||||||
Stock-based compensation
|
26.6
|
26.4
|
||||||
Realized gain on marketable securities
|
(1.3
|
)
|
(0.2
|
)
|
||||
Decrease in trade and other receivables, net
|
200.2
|
183.1
|
||||||
Decrease in deferred revenues, trade payables and other accrued liabilities
|
(39.3
|
)
|
(40.6
|
)
|
||||
Deferred income taxes, net
|
(1.4
|
)
|
5.0
|
|||||
Net cash provided by operating activities
|
374.5
|
359.0
|
||||||
Cash flow from investing activities:
|
||||||||
Investment in property and equipment
|
(3.8
|
)
|
(8.4
|
)
|
||||
Net cash used in investing activities
|
(3.8
|
)
|
(8.4
|
)
|
||||
Cash flow from financing activities:
|
||||||||
Proceeds from issuance of shares upon exercise of options
|
33.1
|
22.9
|
||||||
Purchase of treasury shares
|
(324.9
|
)
|
(325.0
|
)
|
||||
Payments related to shares withheld for taxes
|
(0.9
|
)
|
(0.7
|
)
|
||||
Net cash used in financing activities
|
(292.7
|
)
|
(302.8
|
)
|
||||
Unrealized loss on marketable securities, net
|
(14.7
|
)
|
(6.8
|
)
|
||||
Increase in cash and cash equivalents, marketable securities and short term deposits
|
63.3
|
41.0
|
||||||
Cash and cash equivalents, marketable securities and short term deposits at the beginning of the period
|
3,999.6
|
3,948.7
|
||||||
Cash and cash equivalents, marketable securities and short term deposits at the end of the period
|
$
|
4,062.9
|
$
|
3,989.7
|
CHECK POINT SOFTWARE TECHNOLOGIES LTD.
|
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By:
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/s/ Tal Payne
|
||
Tal Payne
|
|||
Chief Financial Officer & Chief Operating Officer
|