CHECK POINT SOFTWARE TECHNOLOGIES LTD. REPORTS RECORD QUARTERLY RESULTS
REDWOOD CITY, CALIF., – April 30, 1997 – Check Point Software Technologies Ltd. (NASDAQ: CHKPF) today announced record financial results for the first quarter ended March 31, 1997. Revenues for the quarter were $13,684,000, compared with $4,839,000 for the same period in 1996, an increase of 183%. Net income for the quarter was $6,473,000, or $0.17 per share, compared with net income of $2,763,000, or $0.08 per share, in the same quarter in 1996, an increase of 134% in net income and 113% in net income per share. "Two primary factors contributed to Check Point Software Technologies' record quarterly revenues and net income for the first quarter of 1997, the eleventh consecutive quarter of profitability for the company," said Gil Shwed, president and CEO of Check Point Software Technologies Ltd. "The first factor was continued strong demand for FireWall-1 for Windows NT, which made this past quarter the first in which channel shipments of Windows NT product exceeded those of our traditional flagship platform, Sun Solaris." Windows NT product shipments accounted for 49% of channel bookings in the first quarter, up from 40% in the previous quarter. "The second factor was a marked increase in high-end product sales, including demand for enhanced product functionality, which contributed to an increase in the average sales price of Check Point's FireWall-1 family of products," continued Shwed. All channels exhibited continued strong growth this quarter, the first full quarter of sales through two-tier distribution, including Ingram Micro and Westcon, which together accounted for 21% of U.S. channel bookings. Revenues from SunSoft, Inc. accounted for 26% of overall revenues in the first quarter, compared with 34% in the fourth quarter of 1996. This decrease is primarily a result of increased sales by the company's other resellers and distributors. During the first quarter, Check Point shipped FireWall-1 version 3.0, the newest version of its flagship network security software. In addition, the company was issued a patent related to its Stateful Inspection technology by the United States Patent Office. "The issuance of the patent to Check Point Software was a key milestone for the company, enhancing our position as a technology innovator in the network security market and as the pioneer of this new architectural category which has grown significantly over the past twelve months," said Shwed. The company is currently in registration for a secondary offering of ordinary shares and continues to watch market conditions as to the timing and size of its offering. During the quarter, Check Point entered into relationships with significant players in the internetworking and Internet Service Provider markets. The company's relationship with 3Com Corporation to manage the 3Com NETBuilder firewall from the FireWall-1 management console will expand the reach of the company's enterprise management capabilities. Under the agreement, 3Com will bundle the FireWall-1 management console with NETBuilder. Major Internet Service Providers such as MCI Communications and U S West announced managed Internet/intranet services for their corporate customers incorporating Check Point products. Since the end of the quarter, Check Point announced a relationship with Ipsilon Networks to embed and deliver FireWall-1 on their IP Switch Processor, providing network security for customers with high-speed networking requirements. Additionally, in an announcement made today, IBM Corporation will OEM and resell FireWall-1 for the RS/6000 family of servers through their distribution channel. "Over the past few months, Check Point Software has leveraged its leadership position in the firewall market to expand into enterprise network security management," said Dr. Deborah Triant, chief executive officer and president of Check Point Software Technologies, Inc. "Less than six months after the announcement of the OPSEC, or Open Platform for Secure Enterprise Connectivity framework, more than 75 network security, internetworking platform and Internet/intranet applications vendors have joined the OPSEC Alliance, establishing OPSEC as a broadly supported framework for enterprise security management." The company continued to receive industry recognition this quarter with Software Magazine naming Check Point the number one Internet software company. In addition, Network Magazine named Check Point FireWall-1 the ‘Best Firewall" product in its "Products of the Year" issue. Finally, FireWall-1 also received "Best Internet/Intranet Product" honors in the Networld+Interop Singapore Best of Show awards. About Check Point Software
Technologies Ltd. ### 1997 Check Point Software Technologies Ltd. Check Point, the Check Point logo, Check Point FireWall-1, FireWall-1, FireWall-1 SecuRemote, FireWall-First!, OPSEC and INSPECT are trademarks of Check Point Software Technologies Ltd. All other product names mentioned herein are trademarks of their respective owners. CHECK POINT SOFTWARE TECHNOLOGIES LTD. CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (In thousands, except per share amount)
* Including $459,000 related to follow-on offering CHECK POINT SOFTWARE TECHNOLOGIES LTD. SELECTED CONSOLIDATED BALANCE SHEET DATA (In thousands) ASSETS
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