CHECK POINT SOFTWARE TECHNOLOGIES REPORTS RECORD 2012 FIRST QUARTER FINANCIAL RESULTS

  • Total Revenue: $313.1 million, representing an 11 per cent increase year over year
  • Non-GAAP Operating Income: $186.7 million, representing 60 per cent of revenues
  • Non-GAAP EPS: $0.74, representing a 16 per cent increase year over year
  • Cash Flow from Operations: $275.3 million, representing a 30 per cent increase year over year

 
CALGARY, AB – April 23, 2012 – Check Point® Software Technologies Ltd. (NASDAQ: CHKP), the worldwide leader in securing the Internet, today announced its financial results for the first quarter ended March 31, 2012.
“I am very pleased with our strong start to the 2012 calendar year.  Check Point delivered record first quarter results with good growth across all of our key financial metrics. The growth was driven by our latest network security appliances and the continued strength of our annuity software blades,” said Paul Comessotti, Canadian Regional Director, Check Point Software Technologies.
Financial Highlights:

  • Total Revenue: $313.1 million, an increase of 11 per cent, compared to $281.3 million in the first quarter of 2011.\
  • GAAP Operating Income: $172.9 million, an increase of 22 per cent, compared to $141.3 million the first quarter of 2011. GAAP operating margin was 55 per cent, compared to 50 per cent in the first quarter of 2011.
  • Non-GAAP Operating Income: $186.7 million, an increase of 16 per cent, compared to $160.6 million in the first quarter of 2011. Non-GAAP operating margin was 60 per cent, compared to 57 per cent in the first quarter of 2011.
  • GAAP Net Income and Earnings per Diluted Share: GAAP net income was $143.6 million, an increase of 18 per cent, compared to $122.1 million in the first quarter of 2011. GAAP earnings per diluted share were $0.68, an increase of 19 per cent, compared to $0.57 in the first quarter of 2011.
  • Non-GAAP Net Income and Earnings per Diluted Share: Non-GAAP net income was $156.9 million, an increase of 14 per cent, compared to $137.1 million in the first quarter of 2011. Non-GAAP earnings per diluted share were $0.74, an increase of 16 per cent, compared to $0.64 in the first quarter of 2011.
  • Deferred Revenues: As of March 31, 2012, Check Point had deferred revenues of $542.2 million, an increase of 18 per cent, compared to $460.4 million as of March 31, 2011.
    • Cash Flow: Cash flow from operations was $275.3 million, an increase of 30 per cent, compared to $211.6 million in the first quarter of 2011.
  • Share Repurchase Program: During the first quarter of 2012, Check Point repurchased 1.29 million shares at a total cost of $75 million.
  • Cash Balances, Marketable Securities and Short Term Deposits: $3,121.2 million as of March 31, 2012, an increase of $549 million, compared to $2,572.2 million as of March 31, 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.”
 
Check Point ThreatCloud™
On April 17, Check Point introduced ThreatCloud™, the first collaborative network to fight cybercrime.  As enterprises fight threats separately, many threats are left undetected without a current way of sharing threat information across entities. To stay ahead of modern threats, businesses must collaborate – sharing threat data between organizations – to make security stronger and more effective.
ThreatCloud™ automatically gathers threat data from enterprises that choose to contribute and from an innovative worldwide network of threat sensors. It then analyzes the data and distributes threat intelligence to security gateways around the globe. ThreatCloud leverages Check Point’s large installed base of security gateways, Check Point research and industry malware feeds enabling customers to quickly adapt their security response to new threats and protect their networks against threats that otherwise would go undetected.
ThreatCloud is available with Check Point’s latest software blade release, R75.40, which also includes:

  • · New Anti-Bot and enhanced Antivirus Software Blades that are powered by ThreatCloud, allowing them to get real-time updates and enforce pre-emptive protection against advanced threats and other forms of sophisticated malware.
  • · Check Point GAiA™ unified operating system supporting all security gateways and software blades.
  • · Over 100 additional security features, R75.40 brings customers advanced threat prevention, security consolidation and simplified management for better visibility and control.


Industry Accolades:
Check Point also continues to receive industry awards for innovative product development and leadership worldwide, including:

  • Leader in the Gartner Magic Quadrant for Unified Threat Management
  • Computing Security “Encryption Product of the Year” Award – Check Point Full Disk Encryption
  • SC Magazine Readers Choice Award – Best Intrusion Prevention (IPS) Solution
  • Frost & Sullivan Malaysia Excellence Award – Network Security Vendor of the Year

 
In addition, Check Point President, Amnon Bar-Lev, was named a 2012 Channel Chief by CRN Magazine for the fifth consecutive year, based on his program innovations, growth and experience in the channel.
Comessotti concluded, “Check Point’s continued network security leadership is a result of our focus on providing customers with the best security available in the marketplace.  ThreatCloud™ creates the first collaborative network to fight cybercrime, empowering our customers with threat intelligence and real-time protections.”
 
Second Quarter 2012 Investor Conference Participation Schedule:
Bank of America Merrill Lynch 2012 Technology Conference
May 8, 2012 – San Francisco, CA
 
Jeffries Global TMT Conference
May 9, 2012 – New York, NY
 
J.P. Morgan 40th Annual Technology, Media and Telecom Conference
May 16, 2012 – Boston, MA
 
Cowen & Company 40th Annual Technology Media & Telecom Conference
May 30, 2012 – New York, NY
 
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 April 23, 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 May 1, 2012 on the company’s website or by telephone at +1.201.612.7415, replay ID number 392351, account # 215.

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