Check Point Software Technologies Reports 2001 Financial Results
EPS Grew 49% in a Challenging Year
REDWOOD
CITY, Calif. - January 15, 2002 - Check Point Software Technologies
(Nasdaq: CHKP), the worldwide leader in securing the Internet, today
announced financial results for the fourth quarter and fiscal year
ended December 31, 2001.
The fourth quarter of 2001 showed an upward trend in the business
environment, resulting in a sequential increase of revenues and
net income. Net income was $77 million or $0.30 per share (diluted),
an increase of 4% and 3% respectively over the third quarter 2001.
Demand for Check Point products and services brought total revenues
for the quarter to $123 million, a 4% increase over the third quarter.
Net income for the year was
$322 million or $1.25 per share (diluted), compared to net income
of $221 million or $0.84 per share (diluted) during fiscal year
2000, an increase of 46% and 49% respectively. Revenues for the
fiscal year ended December 31, 2001 increased 24% to $528 million,
compared to $425 million for fiscal year 2000.
During the fourth quarter, the company generated net cash flow of
$84 million, bringing total net cash flow for the year to $372 million.
Total cash and interest bearing investments at December 31, 2001
was $1.03 billion.
"In 2001 we increased our earnings
per share 49% and enhanced our technology and market leadership,
in a year of unusual macro-economic challenges" said Gil Shwed,
chairman and chief executive officer of Check Point Software Technologies.
"This is a testament to the Check Point team and our focus on customers
and innovation."
Highlights from 2001 include:
- Check Point Next Generation
- unveiled Check Point Next Generation (NG), using our next generation
architecture for the VPN-1/FireWall-1 product suite. NG sets new
standards for VPN and firewall manageability, reliability, scalability
and performance and incorporates new "One-Click" technologies
that greatly simplify VPN deployment and management.
- New Levels of Performance
and Price/Performance - introduced SecureXL performance architecture
that leverages technology from Check Point and leading chip, appliance
and computer system partners to enable the highest performance
at a variety of price points. Currently-shipping products deliver
speeds in excess of 3 Gbps. Also set new levels of VPN and firewall
price/performance with Check Point NG. Benchmarks delivered over
1.7 Gbps throughput on $4,000 open midrange PC and "Secured by
Check Point" appliances and over 200 Mbps on $400 PC.
- Expanded Nokia Alliance
- deepened longstanding partnership with Nokia by tightly aligning
development strategies to jointly deliver the industry's most
advanced security solutions for wired and wireless environments.
- Extended Breadth of
"Secured by Check Point" Appliance Offerings - increased number
of partners to over 15 and delivered new "Secured by Check Point"
appliances. Introduced the jointly-developed Compaq, Celestix
(sub-$1000) and Intrusion.com appliances. Partnered with Nortel
Networks, CoSine Communications, Crossbeam Systems and Cubix Corporation
for data center and subscriber management high-end platforms.
- Revolutionized Security
for the Broadband SOHO market - a sub $300 security device - SofaWare
Technologies, a Check Point company, announced the S-box™
Safe@Home software and security appliance. S-box revolutionizes
home office and general home computer Internet security with extreme
ease-of-use, the highest levels of security, and management capabilities
for ISP, enterprise and self-managed environments.
Mr. Shwed continued: "I am proud of the accomplishments we achieved this year and look forward to the challenges of 2002. We will continue to focus on our customer needs and introduce new technologies and innovative products. These solutions will drive our vision of making internet communication available and secure everywhere."
Safe Harbor Statement
Certain statements in this press release, such as the prospects
for, and customers' acceptance of, Check Point products 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 the company's current expectations.
Factors that could cause or contribute to such differences include,
but are not limited to: the impact on the Company of economic and
political uncertainties and weaknesses in various regions of the
world; the inclusion of network security functionality in third-party
hardware or system software; any unforeseen developmental or technological
difficulties with regard to our products; changes in the competitive
landscape, including new competitors and/or the impact of competitive
pricing and products; a shift in demand for products such as ours;
unknown factors affecting the third parties with which we have formed
business alliances; timely availability and customer acceptance
of our new and existing products, and other factors and risks discussed
in our Report on Form 20-F for the year ended December 31, 2000
or any other reports filed by us with the Securities and Exchange
Commission. The company 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.
The products described in this document are protected by U.S. Patent
No. 5,606,668 and 5,835,726 and may be protected by other U.S. Patents,
foreign patents, or pending applications.
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CHECK
POINT SOFTWARE TECHNOLOGIES LTD. CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS |
||||||
|
(In thousands, except per share amount) |
||||||
|
Three
Months Ended |
Year Ended
|
|||||
|
December
31, |
December
31, |
|||||
|
2000 |
2001 |
2000 |
2001 |
|||
 |
|
 |
|
|
||
|
(unaudited) |
(audited) |
|||||
| Net Revenues |
$140,435 |
$122,530 |
$425,283 |
$527,643 |
||
| Cost of revenues |
10,208 |
4,661 |
35,265 |
26,571 |
||
|
|
|
|
|
||
| Gross profit |
130,227 |
117,869 |
390,018 |
501,072 |
||
|
|
|
|
|
||
| Operating expenses: | ||||||
| Research and development, net |
9,131 |
7,341 |
30,309 |
33,221 |
||
| Sales and marketing |
29,585 |
26,490 |
110,003 |
109,086 |
||
| General and administrative |
5,614 |
4,442 |
20,409 |
22,002 |
||
|
|
|
|
|
||
| Total operating expenses |
44,330 |
38,273 |
160,721 |
164,309 |
||
|
|
|
|
|
||
| Operating income |
85,897 |
79,596 |
229,297 |
336,763 |
||
| Financial income, net |
9,442 |
11,645 |
29,147 |
44,760 |
||
|
|
|
|
|
||
| Income before taxes on income |
95,339 |
91,241 |
258,444 |
381,523 |
||
| Income Taxes |
14,320 |
14,105 |
37,231 |
59,603 |
||
|
|
|
|
|
||
| Net income |
$81,019 |
$77,136 |
$221,213 |
$321,920 |
||
|
|
|
|
|
||
|
|
|
|
|
||
| Earnings per share (Basic) |
$0.34 |
$0.32 |
$0.95 |
$1.34 |
||
|
|
|
|
|
||
|
|
|
|
|
||
| Number of shares used in computing earnings per share (Basic) |
235,362 |
242,353 |
232,611 |
240,008 |
||
|
|
|
|
|
||
|
|
|
|
|
||
| Earnings per share (Fully diluted) |
$0.31 |
$0.30 |
$0.84 |
$1.25 |
||
|
|
|
|
|
||
|
|
|
|
|
||
| Number of shares used in computing earnings per share (Fully diluted) |
263,982 |
258,893 |
262,515 |
258,075 |
||
|
|
|
|
|
||
|
|
|
|
|
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CHECK
POINT SOFTWARE TECHNOLOGIES LTD. SELECTED CONSOLIDATED BALANCE SHEET DATA |
||||
|
ASSETS:
(In thousands) |
||||
|
December
31, |
December
31, |
|||
|
2000 |
2001 |
|||
|
|
|
|
|
|
(audited) |
(audited) |
|||
|
Current
Assets: |
||||
|
Cash
& cash equivalents, deposits and marketable securities |
$655,952 |
$1,028,317 |
||
|
Trade
receivables, net |
84,381 |
74,294 |
||
|
Other
receivables and prepaid expenses |
20,149 |
21,290 |
||
|
Net
property and equipment |
11,638 |
13,248 |
||
|
Deferred
income taxes |
5,519 |
5,759 |
||
|
|
|
|
|
|
Total
assets |
$777,639 |
$1,142,908 |
||
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND SHAREHOLDERS' EQUITY |
||||
| Liabilities: | ||||
|
Deferred
revenues |
$121,202 |
$95,703 |
||
|
Trade
payables and other accrued liabilities |
107,154 |
131,477 |
||
|
|
|
|
|
|
Total
liabilities |
228,356 |
227,180 |
||
|
|
|
|
|
| Shareholders' Equity: | ||||
|
Share
capital |
723 |
735 |
||
|
Additional
paid-in capital |
102,303 |
146,816 |
||
|
Retained
earnings |
446,257 |
768,177 |
||
|
|
|
|
|
|
Total
shareholders' equity |
549,283 |
915,728 |
||
|
|
|
|
|
|
$777,639 |
$1,142,908 |
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|
|
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