Check Point Software Technologies Ltd. Reports Financial Results for the First Quarter 2002
REDWOOD
CITY, Calif. - April 23, 2002 - Check Point
Software Technologies Ltd. (Nasdaq: CHKP), the worldwide leader
in securing the Internet, today announced financial results for
the first quarter ended March 31, 2002.
Net income for the quarter was $63.5 million or $0.25 per share
(diluted) and revenues were $104.6 million. During the first quarter,
the company generated cash flow of $78.4 million, bringing the total
cash and interest bearing investments to $1.1 billion as of March
31, 2002. Days Sales Outstanding (DSO) improved to 54 days.
"Check Point continued to generate strong earnings despite the slow business environment, generating $63.5 million in net income and $78.4 million in cash," stated Gil Shwed, chairman and chief executive officer. "This is encouraging and a testament to Check Point's healthy business model. Our software powers many open platforms and appliances, uniquely providing the security, scale and flexibility required in today's market environment."
During the last quarter, the
Company expanded its offerings and made headway in several new market
segments, recent highlights include:
- Expanded VPN Solutions - For those customers requiring VPN connectivity only, Check Point introduced a dedicated VPN product, VPN-1® Net, enabling simple, secure and fast connectivity.
- Breakthrough Solutions for the Small Office - Expanded the Check Point product family with affordable, easy-to-use VPN/security solutions for small offices. The new solutions, Safe@Home Pro, Safe@Office and VPN-1®/FireWall-1® SmallOffice NG have generated excitement from partners and customers alike - enabling even very small offices to protect their networks with the same market-leading Check Point security used by large corporations.
- New Wireless Infrastructure Solutions - Introduced FireWall-1® GXT to secure GPRS 2.5G and 3G roaming networks.
- Wireless Corporate Access - Expanded VPN-1® SecureClient™ to enable secure enterprise mobile communications using Pocket PC PDA and handheld devices - with support from industry-leading partners Microsoft, Intel, Compaq and HP.
- Quick Deployment with SecurePlatform - Implementing and deploying security became dramatically easier with the introduction of SecurePlatform Media Pack. In under ten minutes and with one-click, companies can create platforms to protect networks with Check Point's market-leading VPN-1®/FireWall-1® security.
- Enhanced Scalability for Service Providers - Check Point elevated scalability to new heights with VPN-1/FireWall-1 VSX. Innovative software virtualization can turn one version of VPN-1/FireWall-1 into 100 - all on a single piece of hardware - maximizing valuable space, and easing management and maintenance.
"We are well positioned to continue to lead the market," continued Mr. Shwed. "Check Point's product offerings present the only scalable architecture for Internet security solutions, ranging from home and small office appliances to large enterprise and data center systems. We combine our "best of breed" security solution with the best performing open platforms and appliances developed by our partners to bring together the best products and solutions to customers."
Conference
Call Information
The Company will host a conference call with the investment community
at 2:00 PM PT/5:00 PM ET. To listen to the live webcast, please
visit Check Point's web site at http://www.checkpoint.com/ir.
A replay of the conference call will be available through Tuesday,
May 7, 2002, at the Company's website or by telephone at (719) 457-0820,
confirmation code 115998.
Safe
Harbor Statement
Certain statements in this press release are forward-looking statements.
Because such statements deal with future events, they are subject
to various risks and uncertainties and actual results could differ
materially from Check Point's current expectations. Factors that
could cause or contribute to such differences include, but are not
limited to: the impact on revenues of economic and political uncertainties
and weaknesses in various regions of the world, including the commencement
or escalation of hostilities or acts of terrorism; the inclusion
of network security functionality in third-party hardware or system
software; any unforeseen developmental or technological difficulties
with regard to Check Point's products; changes in the competitive
landscape, including new competitors or the impact of competitive
pricing and products; a shift in demand for products such as Check
Point's; unknown factors affecting third parties with which Check
Point has formed business alliances; timely availability and customer
acceptance of Check Point's new and existing products, and other
factors and risks discussed in Check Point's Annual Report on Form
20-F for the year ended December 31, 2001, which is on file with
the Securities and Exchange Commission. Check Point assumes no obligation
to update information concerning its expectations.
About
Check Point Software Technologies
Check Point Software Technologies is the worldwide leader in securing
the Internet. It is the confirmed market leader of both the worldwide
VPN and firewall markets. The company's Secure Virtual Network (SVN)
architecture provides the VPN and security infrastructure that uniquely
enables secure and reliable Internet communications. SVN solutions,
as delivered in the company's Next Generation product family, secure
business communications and resources for corporate networks, remote
employees, branch offices and partner extranets. Extending the power
of SVN is Check Point's Open Platform for Security (OPSEC), the
industry's framework and alliance for integration and interoperability
with "best-of-breed" solutions from over 300 leading companies.
Check Point solutions are sold, integrated and serviced by a network
of 2,000 certified partners in 203 countries. For more information,
please call us at (800) 429-4391 or (650) 628-2000 or visit us on
the Web at http://www.checkpoint.com or at http://www.opsec.com.
###
© 2002 Check Point
Software Technologies Ltd. All rights reserved.
Check Point, the Check Point logo, FireWall-1, FireWall-1 SecureServer,
FireWall-1 SmallOffice, FloodGate-1, INSPECT, IQ Engine, Meta IP,
MultiGate, Open Security Extension, OPSEC, Provider-1, SecureKnowledge,
SecureUpdate, SiteManager-1, SVN, UAM, User-to-Address Mapping,
UserAuthority, Visual Policy Editor, VPN-1, VPN-1 Accelerator Card,
VPN-1 Gateway, VPN-1 SecureClient, VPN-1 SecuRemote, VPN-1 SecureServer,
VPN-1 SmallOffice, and ConnectControl are trademarks, service marks,
or registered trademarks of Check Point Software Technologies Ltd.
or its affiliates. All other product names mentioned herein are
trademarks or registered trademarks of their respective owners.
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CHECK
POINT SOFTWARE TECHNOLOGIES LTD. CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS |
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|
(In thousands, except per share amount) |
||||||
|
Three
Months Ended |
||||||
|
March
31, |
||||||
|
2002 |
2001 |
|||||
 |
|
|
 |
|||
|
(unaudited) |
||||||
| Revenues |
$104,583 |
$145,010 |
||||
| Cost of revenues |
4,615 |
10,078 |
||||
|
|
|
|
|||
| Gross profit |
99,968 |
134,932 |
||||
|
|
|
|
|||
| Operating expenses: | ||||||
| Research and development |
7,399 |
9,320 |
||||
| Sales and marketing |
25,033 |
30,382 |
||||
| General and administrative |
4,837 |
6,538 |
||||
|
|
|
|
|||
| Total operating expenses |
37,269 |
46,240 |
||||
|
|
|
|
|||
| Operating income |
62,699 |
88,692 |
||||
| Financial income, net |
12,227 |
10,101 |
||||
|
|
|
|
|||
| Income before income taxes |
74,926 |
98,793 |
||||
| Income taxes |
11,390 |
15,115 |
||||
|
|
|
|
|||
| Net income |
63,536 |
83,678 |
||||
|
|
|
|
|
||
|
|
|
|
|
||
| Earnings per share (Basic) |
$0.26 |
$0.35 |
||||
|
|
|
|
|
||
|
|
|
|
|
||
| Number of shares used in computing earnings per share (Basic) |
243,179 |
236,945
|
||||
|
|
|
|
|
||
|
|
|
|
|
||
| Earnings per share (Fully diluted) |
$0.25 |
$0.32 |
||||
|
|
|
|
|
||
|
|
|
|
|
||
| Number of shares used in computing earnings per share (Fully diluted) |
259,042 |
262,367 |
||||
|
|
|
|
|
||
|
|
|
|
|
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CHECK
POINT SOFTWARE TECHNOLOGIES LTD. SELECTED CONSOLIDATED BALANCE SHEET DATA |
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|
ASSETS:
(In thousands) |
||||
|
March
31, |
December
31, |
|||
|
2002 |
2001 |
|||
|
|
|
|
|
|
(unaudited) |
(audited) |
|||
|
Assets: |
||||
|
Cash
and cash equivalents, deposits and marketable securities |
$1,106,729 |
$1,028,317 |
||
|
Trade
receivables, net |
62,699 |
74,294 |
||
|
Other
receivables and prepaid expenses |
22,150 |
21,290 |
||
|
Net
property and equipment |
12,597 |
13,248 |
||
|
Deferred
income taxes |
5,798 |
5,759 |
||
|
|
|
|
|
|
Total
assets |
$1,209,973 |
$1,142,908 |
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|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND SHAREHOLDERS' EQUITY |
||||
| Liabilities: | ||||
|
Deferred
revenues |
$94,749 |
$95,703 |
||
|
Trade
payables and other accrued liabilities |
130,598 |
131,477 |
||
|
|
|
|
|
|
Total
current liabilities |
225,347 |
227,180 |
||
|
|
|
|
|
| Shareholders' Equity: | ||||
|
Share
capital |
737 |
735 |
||
|
Additional
paid-in capital |
152,176 |
146,816 |
||
|
Retained
earnings |
831,713 |
768,177 |
||
|
|
|
|
|
|
Total
shareholders' equity |
984,626 |
915,728 |
||
|
|
|
|
|
|
Total
liabilities and shareholders' equity |
$1,209,973 |
$1,142,908 |
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