Fourth Quarter 2010:
• Total Revenue: $318.5 million, representing a 17 per cent increase year over year
• Non-GAAP Operating Income: $183.6 million, representing 58 per cent of revenues
• Non-GAAP EPS: $0.73, representing a 20 per cent increase year over year
Fiscal Year 2010:
• Total Revenue: $1,097.9 million, representing a 19 per cent increase year over year
• Non-GAAP Operating Income: $622.7 million, representing 57 per cent of revenues
• Non-GAAP EPS: $2.48, representing a 21 per cent increase year over year
• Cash Flow from Operations: $674.1 million, representing a 23 per cent increase year over year
CALGARY, AB – JANUARY 31, 2011 — Check Point® Software Technologies Ltd. (NASDAQ: CHKP), the worldwide leader in securing the Internet, today announced its financial results for the fourth quarter and fiscal year ending December 31, 2010.
“I am very pleased with the all-time record results we achieved during the year. We exceeded our own expectations delivering close to $1.1 billion in revenues and $2.48 in earnings per share (Non-GAAP),” said Gil Shwed, founder, chairman, and chief executive officer of Check Point Software Technologies. “Our exceptional performance was driven by demand for our network security products, which is a market in which we continued to gain share. We also extended our market reach with our Intrusion Prevention System (IPS), Data Loss Prevention (DLP) and Mobile Access Software Blades™.”
Financial Highlights for the Fourth Quarter ended December 31, 2010:
- Total Revenue: $318.5 million, an increase of 17 per cent, compared to $272.1 million in the fourth quarter of 2009.
- GAAP Operating Income: $162.0 million, an increase of 24 per cent, compared to $130.6 million in the fourth quarter of 2009. GAAP operating margin was 51 per cent, compared to 48 per cent in the fourth quarter of 2009.
- Non-GAAP Operating Income: $183.6 million, an increase of 20 perc ent, compared to $152.7 million in the fourth quarter of 2009. Non-GAAP operating margin was 58 per cent, compared to 56 per cent in the fourth quarter of 2009.
- GAAP Net Income and Earnings per Diluted Share: GAAP net income was $137.4 million, an increase of 25 per cent, compared to $109.5 million in the fourth quarter of 2009. GAAP earnings per diluted share were $0.64, an increase of 25 per cent, compared to $0.51 in the fourth quarter of 2009.
- Non-GAAP Net Income and Earnings per Diluted Share: Non-GAAP net income was $156.2 million, an increase of 21 per cent, compared to $129.5 million in the fourth quarter of 2009. Non-GAAP earnings per diluted share were $0.73, an increase of 20 per cent, compared to $0.61 in the fourth quarter of 2009.
- Deferred Revenues: As of December 31, 2010, we had deferred revenues of $464.6 million, an increase of 9 per cent, compared to $425.3 million as of December 31, 2009.
- Cash Flow: Cash flow from operations was $162.8 million, an increase of 18 per cent, compared to $138.1 million in the fourth quarter of 2009.
- Share Repurchase Program: During the fourth quarter of 2010, we repurchased 1.16 million shares at a total cost of $50 million.
- Cash Balances and Marketable Securities: $2,414.9 million as of December 31, 2010, an increase of $567.9 million, compared to $1,847.0 million as of December 31, 2009.
Financial Highlights for the Year ended December 31, 2010:
- Total Revenue: $1,097.9 million, an increase of 19 per cent, compared to $924.4 million in 2009.
- GAAP Operating Income: $535.0 million, an increase of 29 per cent, compared to $415.0 million in 2009. GAAP operating margin was 49 per cent, compared to 45 per cent in 2009.
- Non-GAAP Operating Income: $622.7 million, an increase of 23 per cent, compared to $505.7 million in 2009. Non-GAAP operating margin was 57 per cent, compared to 55 per cent in 2009.
- GAAP Net Income and Earnings per Diluted Share: GAAP net income was $452.8 million, an increase of 27 per cent, compared to $357.5 million in 2009. GAAP earnings per diluted share were $2.13, an increase of 26 per cent, compared to $1.68 in 2009.
- Non-GAAP Net Income and Earnings per Diluted Share: Non-GAAP net income was $528.0 million, an increase of 21 per cent, compared to $435.3 million in 2009. Non-GAAP earnings per diluted share were $2.48, an increase of 21 per cent, compared to $2.05 in 2009.
- Cash Flow: Cash flow from operations was $674.1 million, an increase of 23 per cent, compared to $548.7 million in 2009.
For information regarding the non-GAAP financial measures discussed in this release, please see “Use of Non-GAAP Financial Information” and “Reconciliation of Non-GAAP to GAAP Financial Information.”
Business Highlights:
During 2010 Check Point entered, or expanded its presence in the most critical areas of security:
- Data Security – Set a new standard for data security with the introduction of Data Loss Prevention (DLP), making DLP product simple and accessible to a broad range of customers and further augments our data security product portfolio that include disk encryption, media control and the recent acquisition of document security technology.
- Mobile Security – Expanded our secure mobile offering with the introduction of the Mobile Access Software Blade providing secure, one-click access to corporate data from the iPhone and iPad.
- Network Security – Expanded the core network security firewall functionality with the introduction of Application Control technology, classifying and controlling over 100,000 Web 2.0 widgets and over 4,500 distinct applications. In addition, attained leadership in the Intrusion Prevention (IPS) market by providing an integrated IPS blade that can extend every security gateway to become an IPS device. For the first time in the industry, Check Point has proven that customers can get an integrated IPS that attains the highest standards in security as demonstrated by the latest NSS Labs test report.
- Endpoint – Shipped a unified endpoint security system with an integrated client and management that provide the industry’s most comprehensive set of endpoint security technologies (Antivirus / malware protection, remote access VPN, WebCheck, and data security with full disk encryption and removable media controls).
Check Point security leadership was recognized during 2010 in many countries and publications, including a Leader’s Position in three Gartner Magic Quadrants – Enterprise Firewall, Mobile Data Protection and Unified Threat Management.
In addition, Check Point’s founder and CEO, Gil Shwed, was named by Ernst and Young the 2010 “Entrepreneur of the Year” in Israel – highlighting Shwed’s personal contribution to Check Point’s growth and role in pioneering the global security market.
Shwed concluded, “2010’s excellent results underscore Check Point’s commitment to our customers – providing the best security platform for their environment. I would also like to recognize and thank our employees, partners and customers for their contribution to the results.”
First Quarter Investor Conference Participation Schedule:
- Stifel Nicolaus Technology, Communications & Internet Conference 2011
February 11, 2011 – San Francisco, CA - Morgan Stanley Technology, Media and Telecommunications Conference
February 28, 2011 – San Francisco, CA - Raymond James 31st Annual Investor Conference
March 7, 2011 – Orlando, FL - UBS Technology Conference
March 10, 2011 – 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 hosted a conference call with the investment community on January 31, 2011. To listen to the live webcast, please visit Check Point’s website at: www.checkpoint.com/ir. A replay of the conference call will be available through February 7, 2011 at the company’s website www.checkpoint.com/ir or by telephone at +1.201.612.7415, replay ID number 365088.
