|
|
CHECK POINT SOFTWARE TECHNOLOGIES LTD.
(Translation of registrant's name into English)
|
5 Ha’solelim Street, Tel Aviv, Israel
(Address of principal executive offices)
|
Investors: Kip E. Meintzer
|
Media: 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 Revenues: $564 million compared to $544 million in the
fourth quarter of 2019, a 4 percent increase year over year.
|
• |
GAAP Operating Income: $251 million compared to $249 million
in the fourth quarter of 2019, representing 45 percent and 46 percent of revenues in the fourth quarter of 2020 and 2019, respectively.
|
• |
Non-GAAP Operating Income: $285 million compared to $280
million in the fourth quarter of 2019, representing 51 percent of revenues in the fourth quarter of 2020 and 2019.
|
• |
GAAP Taxes on Income (tax benefit): $5.2 million compared to
$3.1 million in the fourth quarter of 2019.
|
• |
GAAP Net Income & Earnings per Diluted share: GAAP net
income was $271 million compared to $272 million in the fourth quarter of 2019. GAAP earnings per diluted share were $1.95 compared to $1.84 in the fourth quarter of 2019, a 6 percent increase year over year.
|
• |
Non-GAAP Net Income & Earnings per Diluted share: Non-GAAP
net income was $301 million compared to $299 million in the fourth quarter of 2019. Non-GAAP earnings per diluted share were $2.17 compared to $2.02 in the fourth quarter of 2019, a 7 percent increase year over year.
|
• |
Deferred Revenues: As of December 31, 2020, deferred revenues
were $1,482 million compared to $1,387 million as of December 31, 2019, a 7 percent increase year over year.
|
• |
Cash Balances, Marketable Securities & Short Term Deposits: $4,000
million as of December 31, 2020, compared to $3,949 million as of December 31, 2019.
|
• |
Cash Flow: Cash flow from operations of $293 million compared
to $246 million in the fourth quarter of 2019. The fourth quarter of 2020 includes $26 million of income related to our currency hedging transactions compared to $2 million in the fourth quarter of 2019. In addition, in the fourth quarter
of 2019 our cash flow from operations included $12 million of acquisition-related costs.
|
• |
Share Repurchase Program: During the fourth quarter of 2020,
the company repurchased approximately 2.7 million shares at a total cost of approximately $323 million.
|
• |
Total Revenues: $2,065 million compared to $1,995 million in
2019, a 4 percent increase year over year.
|
• |
GAAP Operating Income: $904 million compared to $882 million in
2019, representing 44 percent of revenues in 2020 and 2019.
|
• |
Non-GAAP Operating Income: $1,035 million compared to $1,003
million in 2019, representing 50 percent of revenues in 2020 and 2019.
|
• |
GAAP Taxes on Income: $124 million compared to $137 million in
2019.
|
• |
GAAP Net Income & Earnings per Diluted Share: GAAP net
income was $847 million compared to $826 million in 2019. GAAP earnings per diluted share were $5.96 compared to $5.43 in 2019, a 10 percent increase year over year.
|
• |
Non-GAAP Net Income & Earnings per Diluted Share: Non-GAAP
net income was $963 million compared to $933 million in 2019. Non-GAAP earnings per diluted share were $6.78 compared to $6.13 in 2019, an 11 percent increase year over year.
|
• |
Cash Flow: Cash flow from operations of $1,152 million compared
to $1,102 million in 2019.
|
• |
Share Repurchase Program: During 2020, the company repurchased
approximately 11.4 million shares at a total cost of approximately $1,298 million.
|
• |
Goldman Sachs Technology & Internet Conference 2021
February 11, 2021 – Virtual |
• |
Raymond James 2021 Institutional Investor Conference
March 1, 2021 – Virtual |
• |
Morgan Stanley 2021 Media, Telecommunications & Technology
Conference
March 4, 2021 – Virtual 1x1 Meetings Only |
• |
Credit Suisse 2021 Investor Relations 1x1 Conference
March 8, 2021 – Virtual 1x1 Meetings Only |
• |
SunTrust Robinson Humphrey 2021 Technology, Internet & Services
Conference
March 10, 2021 – Virtual |
Three Months Ended
|
Year Ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
Revenues:
|
||||||||||||||||
Products and licenses
|
$
|
160.6
|
$
|
157.9
|
$
|
513.6
|
$
|
510.8
|
||||||||
Security subscriptions
|
179.5
|
163.7
|
671.1
|
610.3
|
||||||||||||
Total revenues from products and security subscriptions
|
340.1
|
321.6
|
1,184.7
|
1,121.1
|
||||||||||||
Software updates and maintenance
|
223.7
|
222.2
|
880.2
|
873.7
|
||||||||||||
Total revenues
|
563.8
|
543.8
|
2,064.9
|
1,994.8
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Cost of products and licenses
|
30.5
|
28.8
|
96.8
|
90.7
|
||||||||||||
Cost of security subscriptions
|
7.9
|
6.7
|
26.4
|
24.6
|
||||||||||||
Total cost of products and security subscriptions
|
38.4
|
35.5
|
123.2
|
115.3
|
||||||||||||
Cost of Software updates and maintenance
|
26.2
|
24.7
|
96.7
|
94.5
|
||||||||||||
Amortization of technology
|
1.7
|
1.4
|
6.6
|
5.6
|
||||||||||||
Total cost of revenues
|
66.3
|
61.6
|
226.5
|
215.4
|
||||||||||||
Research and development
|
66.9
|
62.7
|
252.8
|
239.2
|
||||||||||||
Selling and marketing
|
150.7
|
141.5
|
569.9
|
552.7
|
||||||||||||
General and administrative
|
28.5
|
28.7
|
111.5
|
105.7
|
||||||||||||
Total operating expenses
|
312.4
|
294.5
|
1,160.7
|
1,113.0
|
||||||||||||
Operating income
|
251.4
|
249.3
|
904.2
|
881.8
|
||||||||||||
Financial income, net
|
14.2
|
19.9
|
66.6
|
80.6
|
||||||||||||
Income before taxes on income
|
265.6
|
269.2
|
970.8
|
962.4
|
||||||||||||
Taxes on income (tax benefit)
|
(5.2
|
)
|
(3.1
|
)
|
124.2
|
136.7
|
||||||||||
Net income
|
$
|
270.8
|
$
|
272.3
|
$
|
846.6
|
$
|
825.7
|
||||||||
Basic earnings per share
|
$
|
1.98
|
$
|
1.86
|
$
|
6.03
|
$
|
5.48
|
||||||||
Number of shares used in computing basic earnings per share
|
137.1
|
146.7
|
140.5
|
150.6
|
||||||||||||
Diluted earnings per share
|
$
|
1.95
|
$
|
1.84
|
$
|
5.96
|
$
|
5.43
|
||||||||
Number of shares used in computing diluted earnings per share
|
138.9
|
148.1
|
142.0
|
152.1
|
Three Months Ended
|
Year Ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
Revenues
|
$
|
563.8
|
$
|
543.8
|
$
|
2,064.9
|
$
|
1,994.8
|
||||||||
Non-GAAP operating income
|
285.3
|
279.7
|
1,034.7
|
1,002.8
|
||||||||||||
Non-GAAP net income
|
301.0
|
299.3
|
962.7
|
933.0
|
||||||||||||
Diluted Non-GAAP Earnings per share
|
$
|
2.17
|
$
|
2.02
|
$
|
6.78
|
$
|
6.13
|
||||||||
Number of shares used in computing diluted Non-GAAP earnings per share
|
138.9
|
148.1
|
142.0
|
152.1
|
Three Months Ended
|
Year Ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
GAAP operating income
|
$
|
251.4
|
$
|
249.3
|
$
|
904.2
|
$
|
881.8
|
||||||||
Stock-based compensation (1)
|
29.0
|
26.7
|
112.5
|
106.7
|
||||||||||||
Amortization of intangible assets and acquisition related expenses (2)
|
4.9
|
3.7
|
18.0
|
14.3
|
||||||||||||
Non-GAAP operating income
|
$
|
285.3
|
$
|
279.7
|
$
|
1,034.7
|
$
|
1,002.8
|
||||||||
GAAP net income
|
$
|
270.8
|
$
|
272.3
|
$
|
846.6
|
$
|
825.7
|
||||||||
Stock-based compensation (1)
|
29.0
|
26.7
|
112.5
|
106.7
|
||||||||||||
Amortization of intangible assets and acquisition related expenses (2)
|
4.9
|
3.7
|
18.0
|
14.3
|
||||||||||||
Taxes on the above items (3)
|
(3.7
|
)
|
(3.4
|
)
|
(14.4
|
)
|
(13.7
|
)
|
||||||||
Non-GAAP net income
|
$
|
301.0
|
$
|
299.3
|
$
|
962.7
|
$
|
933.0
|
||||||||
Diluted GAAP Earnings per share
|
$
|
1.95
|
$
|
1.84
|
$
|
5.96
|
$
|
5.43
|
||||||||
Stock-based compensation (1)
|
0.21
|
0.18
|
0.79
|
0.70
|
||||||||||||
Amortization of intangible assets and acquisition related expenses (2)
|
0.04
|
0.02
|
0.13
|
0.10
|
||||||||||||
Taxes on the above items (3)
|
(0.03
|
)
|
(0.02
|
)
|
(0.10
|
)
|
(0.10
|
)
|
||||||||
Diluted Non-GAAP Earnings per share
|
$
|
2.17
|
$
|
2.02
|
$
|
6.78
|
$
|
6.13
|
||||||||
Number of shares used in computing diluted Non-GAAP earnings per share
|
138.9
|
148.1
|
142.0
|
152.1
|
||||||||||||
(1) Stock-based compensation:
|
||||||||||||||||
Cost of products and licenses
|
$
|
0.1
|
$
|
0.1
|
$
|
0.4
|
$
|
0.2
|
||||||||
Cost of software updates and maintenance
|
1.1
|
1.0
|
4.1
|
4.2
|
||||||||||||
Research and development
|
6.3
|
4.5
|
23.5
|
18.9
|
||||||||||||
Selling and marketing
|
10.0
|
8.0
|
36.8
|
28.8
|
||||||||||||
General and administrative
|
11.5
|
13.1
|
47.7
|
54.6
|
||||||||||||
29.0
|
26.7
|
112.5
|
106.7
|
|||||||||||||
(2) Amortization of intangible assets and acquisition related expenses:
|
||||||||||||||||
Amortization of technology-cost of revenues
|
1.7
|
1.4
|
6.6
|
5.6
|
||||||||||||
Research and development
|
1.3
|
1.9
|
4.1
|
6.9
|
||||||||||||
Selling and marketing
|
1.9
|
0.4
|
7.3
|
1.8
|
||||||||||||
4.9
|
3.7
|
18.0
|
14.3
|
|||||||||||||
(3) Taxes on the above items
|
(3.7
|
)
|
(3.4
|
)
|
(14.4
|
)
|
(13.7
|
)
|
||||||||
Total, net
|
$
|
30.2
|
$
|
27.0
|
$
|
116.1
|
$
|
107.3
|
December 31,
|
December 31,
|
|||||||
2020
|
2019
|
|||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
255.7
|
$
|
279.2
|
||||
Marketable securities and short-term deposits
|
1,432.0
|
1,300.1
|
||||||
Trade receivables, net
|
540.8
|
495.8
|
||||||
Prepaid expenses and other current assets
|
50.1
|
59.1
|
||||||
Total current assets
|
2,278.6
|
2,134.2
|
||||||
Long-term assets:
|
||||||||
Marketable securities
|
2,311.9
|
2,368.8
|
||||||
Property and equipment, net
|
88.1
|
87.7
|
||||||
Deferred tax asset, net
|
34.4
|
55.3
|
||||||
Goodwill and other intangible assets, net
|
1,040.7
|
1,024.7
|
||||||
Other assets
|
85.5
|
94.2
|
||||||
Total long-term assets
|
3,560.6
|
3,630.7
|
||||||
Total assets
|
$
|
5,839.2
|
$
|
5,764.9
|
Current liabilities:
|
||||||||
Deferred revenues
|
$
|
1,108.6
|
$
|
1,011.9
|
||||
Trade payables and other accrued liabilities
|
435.2
|
384.8
|
||||||
Total current liabilities
|
1,543.8
|
1,396.7
|
||||||
Long-term liabilities:
|
||||||||
Long-term deferred revenues
|
373.3
|
374.8
|
||||||
Income tax accrual
|
422.8
|
393.3
|
||||||
Other long-term liabilities
|
33.1
|
31.3
|
||||||
829.2
|
799.4
|
|||||||
Total liabilities
|
2,373.0
|
2,196.1
|
||||||
Shareholders’ equity:
|
||||||||
Share capital
|
0.8
|
0.8
|
||||||
Additional paid-in capital
|
2,028.4
|
1,770.3
|
||||||
Treasury shares at cost
|
(9,319.0
|
)
|
(8,092.7
|
)
|
||||
Accumulated other comprehensive gain
|
40.7
|
21.7
|
||||||
Retained earnings
|
10,715.3
|
9,868.7
|
||||||
Total shareholders’ equity
|
3,466.2
|
3,568.8
|
||||||
Total liabilities and shareholders’ equity
|
$
|
5,839.2
|
$
|
5,764.9
|
||||
Total cash and cash equivalents, marketable securities and short-term deposits
|
$
|
3,999.6
|
$
|
3,948.7
|
Three Months Ended
|
Year Ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
Cash flow from operating activities:
|
||||||||||||||||
Net income
|
$
|
270.8
|
$
|
272.3
|
$
|
846.6
|
$
|
825.7
|
||||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||||||
Depreciation of property and equipment
|
5.1
|
5.0
|
18.9
|
16.7
|
||||||||||||
Amortization of intangible assets
|
2.1
|
1.8
|
8.2
|
7.3
|
||||||||||||
Stock-based compensation
|
29.0
|
26.7
|
112.5
|
106.7
|
||||||||||||
Realized gain on marketable securities
|
(1.6
|
)
|
(0.7
|
)
|
(4.5
|
)
|
(0.5
|
)
|
||||||||
Decrease (increase) in trade and other receivables, net
|
(227.4
|
)
|
(198.8
|
)
|
(17.1
|
)
|
21.0
|
|||||||||
Increase in deferred revenues, trade payables and other accrued liabilities
|
212.2
|
137.9
|
172.3
|
112.6
|
||||||||||||
Deferred income taxes, net
|
2.4
|
2.2
|
14.7
|
12.8
|
||||||||||||
Net cash provided by operating activities
|
292.6
|
246.4
|
1,151.6
|
1,102.3
|
||||||||||||
Cash flow from investing activities:
|
||||||||||||||||
Payment in conjunction with acquisitions, net of acquired cash
|
-
|
(32.5
|
)
|
(23.1
|
)
|
(37.6
|
)
|
|||||||||
Investment in property and equipment
|
(2.5
|
)
|
(5.8
|
)
|
(19.3
|
)
|
(25.9
|
)
|
||||||||
Net cash used in investing activities
|
(2.5
|
)
|
(38.3
|
)
|
(42.4
|
)
|
(63.5
|
)
|
||||||||
Cash flow from financing activities:
|
||||||||||||||||
Proceeds from issuance of shares upon exercise of options
|
143.5
|
10.4
|
217.5
|
95.3
|
||||||||||||
Purchase of treasury shares
|
(323.0
|
)
|
(325.0
|
)
|
(1,297.7
|
)
|
(1,278.0
|
)
|
||||||||
Payments related to shares withheld for taxes
|
(0.7
|
)
|
(0.6
|
)
|
(6.1
|
)
|
(6.0
|
)
|
||||||||
Net cash used in financing activities
|
(180.2
|
)
|
(315.2
|
)
|
(1,086.3
|
)
|
(1,188.7
|
)
|
||||||||
Unrealized gain (loss) on marketable securities, net
|
(6.7
|
)
|
0.7
|
28.0
|
59.5
|
|||||||||||
Increase (decrease) in cash and cash equivalents, marketable securities and short term deposits
|
103.2
|
(106.4
|
)
|
50.9
|
(90.4
|
)
|
||||||||||
Cash and cash equivalents, marketable securities and short term deposits at the beginning of the period
|
3,896.4
|
4,055.1
|
3,948.7
|
4,039.1
|
||||||||||||
Cash and cash equivalents, marketable securities and short term deposits at the end of the period
|
$
|
3,999.6
|
$
|
3,948.7
|
$
|
3,999.6
|
$
|
3,948.7
|
CHECK POINT SOFTWARE TECHNOLOGIES LTD.
|
|||
|
By:
|
/s/ Tal Payne | |
Tal Payne | |||
Chief Financial Officer & Chief Operating Officer |