CALGARY, AB – October 17, 2012 — Check Point® Software Technologies Ltd. (NASDAQ: CHKP), the worldwide leader in securing the Internet, today announced its financial results for the third quarter ended September 30, 2012.
- Total Revenue: $332.4 million, representing an 8 percent increase year-over-year
- Non-GAAP Operating Income: $195.6 million, representing 59 percent of revenues
- Non-GAAP EPS: $0.79, representing a 10 percent increase year over year
“Third quarter results continued to be good with healthy growth in enterprise appliance units and software blade sales. Our revenues and earnings per share came in at the upper half of our projections.” said Gil Shwed, founder, chairman and chief executive officer of Check Point Software Technologies. “Geographically, North America continued to deliver great results with double digit growth in product and service revenues.”
Financial Highlights:
Total Revenue: $332.4 million, an increase of 8 percent, compared to $308.3 million in the third quarter of 2011.
GAAP Operating Income: $182.6 million, an increase of 15 percent, compared to $158.2 million in the third quarter of 2011. GAAP operating margin was 55 percent, compared to 51 percent in the third quarter of 2011.
Non-GAAP Operating Income: $195.6 million, an increase of 8 percent, compared to $180.7 million in the third quarter of 2011. Non-GAAP operating margin was 59 percent, the same as in the third quarter of 2011.
GAAP Net Income and Earnings per Diluted Share: GAAP net income was $152.4 million, an increase of 14 per cent, compared to $134.1 million in the third quarter of 2011. GAAP earnings per diluted share were $0.73, an increase of 16 per cent, compared to $0.63 in the third quarter of 2011.
Non-GAAP Net Income and Earnings per Diluted Share: Non-GAAP net income was $164.1 million, an increase of 7 per cent, compared to $152.9 million in the third quarter of 2011. Non-GAAP earnings per diluted share were $0.79, an increase of 10 per cent, compared to $0.72, in the third quarter of 2011.
Deferred Revenues: As of September 30, 2012, we had deferred revenues of $505.9 million, an increase of 11 per cent, compared to $454.5 million as of September 30, 2011.
Cash Flow: Cash flow from operations was $180.4 million, an increase of 17 percent, compared to $154.5 million in the third quarter of 2011.
Share Repurchase Program: During the third quarter of 2012, we repurchased 3.2 million shares at a total cost of $156.1 million.
Cash Balances, Marketable Securities and Short Term Deposits: $3,246.8 million as of September 30, 2012, an increase of $470.3 million, compared to $2,776.5 million as of September 30, 2011.
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
During the quarter, we announced the new Check Point Virtual Systems – Latest solution for private cloud environments and data centers enabling the consolidation of up to 250 security gateways on a single hardware platform. Customers can now secure multiple network segments by selecting any combination of Check Point software blades, which are capable of simplifying security, reducing costs and boosting performance.
We’ve continued to receive industry recognition worldwide including:
Top Position in IDC Worldwide Combined Firewall and UTM Appliance Market – Check Point is positioned as the number one vendor in worldwide combined Firewall and UTM appliance revenue for Q2 2012 according to the IDC Worldwide Q2 2012 Security Appliance Tracker.
Leader in Gartner’s Magic Quadrant for Mobile Data Protection – Check Point is positioned as a leader in Gartner’s Magic Quadrant for Mobile Data Protection, 2012. The company is recognized for its ability to encrypt data and secure mobile endpoints.
NSS Labs “Recommended” Rating – Check Point IPS Software Blade earned NSS Labs’ coveted “Recommended” rating for the second year in a row.
Shwed concluded, “We are pleased with IDC’s recognition of Check Point’s number one position in security appliance sales this past quarter. We believe that with our appliances and software blades architecture we deliver the deepest and broadest security solutions available in the market.”
Fourth Quarter 2012 Investor Conference Participation Schedule:
Wells Fargo Securities Media & Technology Conference
November 7, 2012 – New York, NY
UBS Global Technology Conference
November 15, 2012 – New York, NY
Credit Suisse Annual Technology Conference
November 27, 2012 – Scottsdale, AZ
29th Annual NASDAQ OMX Investor Program
December 4, 2012 London, UK
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 will host a conference call with the investment community on October 17, 2012 at 8:30 AM ET/5:30 AM PT. To listen to the live webcast, please visit the website at: www.checkpoint.com/ir. A replay of the conference call will be available through October 24, 2012 on the company’s website or by telephone at +1.201.612.7415, replay ID number 401438.
