• |
Total Revenue: $534 million, a 5 percent increase year over year
|
• |
Subscription Revenues: $190 million, a 13 percent increase year over year
|
• |
Deferred Revenues: $1,456 million, a 12 percent increase year over year
|
• |
GAAP Operating Income: $225 million, representing 42 percent of revenues
|
• |
Non-GAAP Operating Income: $261 million, representing 49 percent of revenues
|
• |
GAAP EPS: $1.40, a 1 percent decrease year over year
|
• |
Non-GAAP EPS: $1.65, a 1 percent increase year over year
|
• |
Total Revenue: $534 million compared to $509 million in the third quarter of 2020, a 5 percent increase year over year.
|
• |
GAAP Operating Income: $225 million compared to $231 million in the third quarter of 2020, representing 42 percent and 45 percent of revenues in the third quarter of 2021 and 2020, respectively.
|
• |
Non-GAAP Operating Income: $261 million compared to $265 million in the third quarter of 2020, representing 49 percent and 52 percent of revenues in the third quarter of 2021 and 2020, respectively.
|
• |
GAAP Taxes on Income: $47 million compared to $45 million in the third quarter of 2020.
|
• |
GAAP Net Income: $187 million compared to $201 million in the third quarter of 2020.
|
• |
Non-GAAP Net Income: $220 million compared to $231 million in the third quarter of 2020.
|
• |
GAAP Earnings per Diluted share: $1.40 million compared to $1.42 million in the third quarter of 2020, a1 percent decrease year over year.
|
• |
Non-GAAP Earnings per Diluted share: $1.65 compared to $1.64 in the third quarter of 2020, a1 percent increase year over year.
|
• |
Deferred Revenues: As of September 30, 2021, deferred revenues were $1,456 million compared to $1,302 million as of September 30, 2020, a 12 percent increase year over year.
|
• |
Cash Balances, Marketable Securities and Short-Term Deposits: $3,835 million as of September 30, 2021, compared to $3,896 million as of September 30, 2020.
|
• |
Cash Flow: During the quarter we acquired Avanan, a world leader in cloud email security, for $234 million net cash consideration.Cash flow from operations was $251 million, compared to $248 million in the third quarter of 2020. The operating cash flow for the quarter included a cost of $14 million related to the acquisition of Avanan.
|
• |
Share Repurchase Program: During the third quarter of 2021, we repurchased approximately 2.64 million shares at a total cost of approximately $325 million. During the quarter we announced a $2 billion expansion to the share repurchase program with authorization to repurchase up to $325 million each quarter.
|
Check Point will host a video conference with the investment community on October 28, 2021, at 8:30 AM ET/5:30 AM PT. To listen to the live video cast or replay, please visit the website: www.checkpoint.com/ir.
• |
RBC 2021 Virtual Technology, Internet, Media & Telecommunications Conference November 16-17, 2021 - Virtual Fireside Chat & 1x1's |
• |
Wells Fargo 2021 Virtual Technology Conference November 30, 2021 - Virtual 1x1's |
• |
Credit Suisse 2021 Technology Summit December 1-2, 2021 - 1x1's |
• |
NASDAQ 2021 Technology Conference December 2-3, 2021 - Virtual Fireside Chat & 1x1's |
• |
UBS 2021 Technology Conference December 6, 2021 - Virtual Fireside Chat & 1x1's |
• |
Raymond James 2021 Technology Conference December 7, 2021 - Virtual 1x1's |
• |
Barclays 2021 Technology Conference December 8, 2021 - Virtual Fireside Chat & 1x1's |
In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Check Point uses non-GAAP measures of operating income, net income and earnings per diluted share, which are adjustments from results based on GAAP to exclude, as applicable, stock-based compensation expenses, amortization of intangible assets and acquisition related expenses and the related tax affects. Check Point's management believes the non-GAAP financial information provided in this release is useful to investors' understanding and assessment of Check Point's ongoing core operations and prospects for the future. Historically, Check Point has also publicly presented these supplemental non-GAAP financial measures in order to assist the investment community to see the Company "through the eyes of management," and thereby enhance understanding of its operating performance. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of the non-GAAP financial measures discussed in this press release to the most directly comparable GAAP financial measures is included with the financial statements contained in this press release. Management uses both GAAP and non-GAAP information in evaluating and operating business internally and as such has determined that it is important to provide this information to investors.
CONSOLIDATED STATEMENT OF INCOME
Three Months Ended
|
Nine Months Ended
| |||||||||||||||
September 30,
|
September 30,
| |||||||||||||||
2021
|
2020
|
2021
|
2020
| |||||||||||||
Revenues:
| ||||||||||||||||
Products and licenses
|
$
|
119.1
|
$
|
120.2
|
$
|
347.5
|
$
|
353.0
| ||||||||
Security subscriptions
|
190.0
|
168.8
|
551.1
|
491.6
| ||||||||||||
Total revenues from products and security subscriptions
|
309.1
|
289.0
|
898.6
|
844.6
| ||||||||||||
Software updates and maintenance
|
224.9
|
220.0
|
669.1
|
656.5
| ||||||||||||
Total revenues
|
534.0
|
509.0
|
1,567.7
|
1,501.1
| ||||||||||||
Operating expenses:
| ||||||||||||||||
Cost of products and licenses
|
25.9
|
22.9
|
70.7
|
66.3
| ||||||||||||
Cost of security subscriptions
|
9.3
|
5.9
|
26.0
|
18.5
| ||||||||||||
Total cost of products and security subscriptions
|
35.2
|
28.8
|
96.7
|
84.8
| ||||||||||||
Cost of Software updates and Maintenance
|
25.8
|
23.3
|
76.7
|
70.5
| ||||||||||||
Amortization of technology
|
2.2
|
1.7
|
5.6
|
4.9
| ||||||||||||
Total cost of revenues
|
63.2
|
53.8
|
179.0
|
160.2
| ||||||||||||
Research and development
|
71.3
|
61.3
|
207.2
|
185.9
| ||||||||||||
Selling and marketing
|
148.3
|
135.8
|
437.2
|
419.2
| ||||||||||||
General and administrative
|
26.7
|
26.8
|
82.7
|
83.0
| ||||||||||||
Total operating expenses
|
309.5
|
277.7
|
906.1
|
848.3
| ||||||||||||
Operating income
|
224.5
|
231.3
|
661.6
|
652.8
| ||||||||||||
Financial income, net
|
9.2
|
14.4
|
32.2
|
52.4
| ||||||||||||
Income before taxes on income
|
233.7
|
245.7
|
693.8
|
705.2
| ||||||||||||
Taxes on income
|
46.7
|
45.0
|
137.9
|
129.4
| ||||||||||||
Net income
|
$
|
187.0
|
$
|
200.7
|
$
|
555.9
|
$
|
575.8
| ||||||||
Basic earnings per share
|
$
|
1.41
|
$
|
1.44
|
$
|
4.17
|
$
|
4.06
| ||||||||
Number of shares used in computing basic earnings per share
|
132.6
|
139.3
|
133.3
|
141.8
| ||||||||||||
Diluted earnings per share
|
$
|
1.40
|
$
|
1.42
|
$
|
4.13
|
$
|
3.99
| ||||||||
Number of shares used in computing diluted earnings per share
|
133.4
|
141.1
|
134.4
|
144.4
|
SELECTED FINANCIAL METRICS
Three Months Ended
|
Nine Months Ended
| |||||||||||||||
September 30,
|
September 30,
| |||||||||||||||
2021
|
2020
|
2021
|
2020
| |||||||||||||
Revenues
|
$
|
534.0
|
$
|
509.0
|
$
|
1,567.7
|
$
|
1,501.1
| ||||||||
Non-GAAP operating income
|
261.3
|
265.0
|
764.7
|
749.4
| ||||||||||||
Non-GAAP net income
|
219.8
|
230.8
|
647.9
|
661.7
| ||||||||||||
Diluted Non-GAAP Earnings per share
|
$
|
1.65
|
$
|
1.64
|
$
|
4.82
|
$
|
4.58
| ||||||||
Number of shares used in computing diluted Non-GAAP earnings per share
|
133.4
|
141.1
|
134.4
|
144.4
|
Three Months Ended
|
Nine Months Ended
| |||||||||||||||
September 30,
|
September 30,
| |||||||||||||||
2021
|
2020
|
2021
|
2020
| |||||||||||||
GAAP operating income
|
$
|
224.5
|
$
|
231.3
|
$
|
661.6
|
$
|
652.8
| ||||||||
Stock-based compensation (1)
|
31.2
|
29.1
|
87.7
|
83.5
| ||||||||||||
Amortization of intangible assets and acquisition related expenses (2)
|
5.6
|
4.6
|
15.4
|
13.1
| ||||||||||||
Non-GAAP operating income
|
$
|
261.3
|
$
|
265.0
|
$
|
764.7
|
$
|
749.4
| ||||||||
GAAP net income
|
$
|
187.0
|
$
|
200.7
|
$
|
555.9
|
$
|
575.8
| ||||||||
Stock-based compensation (1)
|
31.2
|
29.1
|
87.7
|
83.5
| ||||||||||||
Amortization of intangible assets and acquisition related expenses (2)
|
5.6
|
4.6
|
15.4
|
13.1
| ||||||||||||
Taxes on the above items (3)
|
(4.0
|
)
|
(3.6
|
)
|
(11.1
|
)
|
(10.7
|
)
| ||||||||
Non-GAAP net income
|
$
|
219.8
|
$
|
230.8
|
$
|
647.9
|
$
|
661.7
| ||||||||
Diluted GAAP Earnings per share
|
$
|
1.40
|
$
|
1.42
|
$
|
4.13
|
$
|
3.99
| ||||||||
Stock-based compensation (1)
|
0.24
|
0.21
|
0.66
|
0.58
| ||||||||||||
Amortization of intangible assets and acquisition related expenses (2)
|
0.04
|
0.03
|
0.11
|
0.09
| ||||||||||||
Taxes on the above items (3)
|
(0.03
|
)
|
(0.02
|
)
|
(0.08
|
)
|
(0.08
|
)
| ||||||||
Diluted Non-GAAP Earnings per share
|
$
|
1.65
|
$
|
1.64
|
$
|
4.82
|
$
|
4.58
| ||||||||
Number of shares used in computing diluted Non-GAAP earnings per share
|
133.4
|
141.1
|
134.4
|
144.4
| ||||||||||||
(1) Stock-based compensation:
| ||||||||||||||||
Cost of products and licenses
|
$
|
0.1
|
$
|
0.1
|
$
|
0.3
|
$
|
0.3
| ||||||||
Cost of software updates and maintenance
|
1.2
|
1.1
|
3.2
|
3.0
| ||||||||||||
Research and development
|
7.8
|
6.9
|
21.5
|
17.2
| ||||||||||||
Selling and marketing
|
12.7
|
10.2
|
31.5
|
26.8
| ||||||||||||
General and administrative
|
9.4
|
10.8
|
31.2
|
36.2
| ||||||||||||
31.2
|
29.1
|
87.7
|
83.5
| |||||||||||||
(2) Amortization of intangible assets and acquisition related expenses:
| ||||||||||||||||
Amortization of technology-cost of revenues
|
2.2
|
1.7
|
5.6
|
4.9
| ||||||||||||
Research and development
|
1.3
|
1.1
|
3.9
|
2.8
| ||||||||||||
Selling and marketing
|
2.1
|
1.8
|
5.9
|
5.4
| ||||||||||||
5.6
|
4.6
|
15.4
|
13.1
| |||||||||||||
(3) Taxes on the above items
|
(4.0
|
)
|
(3.6
|
)
|
(11.1
|
)
|
(10.7
|
)
| ||||||||
Total, net
|
$
|
32.8
|
$
|
30.1
|
$
|
92.0
|
$
|
85.9
|
September 30,
|
December 31,
| |||||||
2021
|
2020
| |||||||
Current assets:
| ||||||||
Cash and cash equivalents
|
$
|
314.9
|
$
|
255.7
| ||||
Marketable securities and short-term deposits
|
1,421.7
|
1,432.0
| ||||||
Trade receivables, net
|
324.0
|
540.8
| ||||||
Prepaid expenses and other current assets
|
49.2
|
50.1
| ||||||
Total current assets
|
2,109.8
|
2,278.6
| ||||||
Long-term assets:
| ||||||||
Marketable securities
|
2,098.0
|
2,311.9
| ||||||
Property and equipment, net
|
84.5
|
88.1
| ||||||
Deferred tax asset, net
|
38.6
|
34.4
| ||||||
Goodwill and other intangible assets, net
|
1,255.1
|
1,040.7
| ||||||
Other assets
|
84.7
|
85.5
| ||||||
Total long-term assets
|
3,560.9
|
3,560.6
| ||||||
Total assets
|
$
|
5,670.7
|
$
|
5,839.2
|
Current liabilities:
| ||||||||
Deferred revenues
|
$
|
1,058.5
|
$
|
1,108.6
| ||||
Trade payables and other accrued liabilities
|
413.2
|
435.2
| ||||||
Total current liabilities
|
1,471.7
|
1,543.8
| ||||||
Long-term liabilities:
| ||||||||
Long-term deferred revenues
|
397.2
|
373.3
| ||||||
Income tax accrual
|
473.0
|
422.8
| ||||||
Other long-term liabilities
|
28.8
|
33.1
| ||||||
899.0
|
829.2
| |||||||
Total liabilities
|
2,370.7
|
2,373.0
| ||||||
Shareholders' equity:
| ||||||||
Share capital
|
0.8
|
0.8
| ||||||
Additional paid-in capital
|
2,243.2
|
2,028.4
| ||||||
Treasury shares at cost
|
(10,231.6
|
)
|
(9,319.0
|
)
| ||||
Accumulated other comprehensive gain
|
16.4
|
40.7
| ||||||
Retained earnings
|
11,271.2
|
10,715.3
| ||||||
Total shareholders' equity
|
3,300.0
|
3,466.2
| ||||||
Total liabilities and shareholders' equity
|
$
|
5,670.7
|
$
|
5,839.2
| ||||
Total cash and cash equivalents, marketable securities and short-term deposits
|
$
|
3,834.6
|
$
|
3,999.6
|
Three Months Ended
|
Nine Months Ended
| |||||||||||||||
September 30,
|
September 30,
| |||||||||||||||
2021
|
2020
|
2021
|
2020
| |||||||||||||
Cash flow from operating activities:
| ||||||||||||||||
Net income
|
$
|
187.0
|
$
|
200.7
|
$
|
555.9
|
$
|
575.8
| ||||||||
Adjustments to reconcile net income to net cash provided by operating activities:
| ||||||||||||||||
Depreciation of property and equipment
|
4.8
|
4.8
|
15.0
|
13.8
| ||||||||||||
Amortization of intangible assets
|
2.6
|
2.1
|
6.8
|
6.1
| ||||||||||||
Stock-based compensation
|
31.2
|
29.1
|
87.7
|
83.5
| ||||||||||||
Realized (gain) loss on marketable securities
|
0.5
|
(2.2
|
)
|
(1.0
|
)
|
(2.9
|
)
| |||||||||
Decrease in trade and other receivables, net
|
44.5
|
34.2
|
219.8
|
210.3
| ||||||||||||
Increase (decrease) in deferred revenues, trade payables and other accrued liabilities
|
(23.1
|
)
|
(22.9
|
)
|
0.9
|
(39.9
|
)
| |||||||||
Deferred income taxes, net
|
3.2
|
1.8
|
3.7
|
12.3
| ||||||||||||
Net cash provided by operating activities
|
250.7
|
247.6
|
888.8
|
859.0
| ||||||||||||
Cash flow from investing activities:
| ||||||||||||||||
Payment in conjunction with acquisitions, net of acquired cash
|
(219.7
|
)
|
(23.1
|
)
|
(219.7
|
)
|
(23.1
|
)
| ||||||||
Investment in property and equipment
|
(4.3
|
)
|
(4.5
|
)
|
(11.4
|
)
|
(16.8
|
)
| ||||||||
Net cash used in investing activities
|
(224.0
|
)
|
(27.6
|
)
|
(231.1
|
)
|
(39.9
|
)
| ||||||||
Cash flow from financing activities:
| ||||||||||||||||
Proceeds from issuance of shares upon exercise of options
|
140.0
|
47.4
|
187.5
|
74.0
| ||||||||||||
Purchase of treasury shares
|
(325.0
|
)
|
(325.0
|
)
|
(974.6
|
)
|
(974.7
|
)
| ||||||||
Payments related to shares withheld for taxes
|
(0.7
|
)
|
(0.6
|
)
|
(6.5
|
)
|
(5.4
|
)
| ||||||||
Net cash used in financing activities
|
(185.7
|
)
|
(278.2
|
)
|
(793.6
|
)
|
(906.1
|
)
| ||||||||
Unrealized gain (loss) on marketable securities, net
|
(8.4
|
)
|
(4.8
|
)
|
(29.1
|
)
|
34.7
| |||||||||
Decrease in cash and cash equivalents, marketable securities and short term deposits
|
(167.4
|
)
|
(63.0
|
)
|
(165.0
|
)
|
(52.3
|
)
| ||||||||
Cash and cash equivalents, marketable securities and short term deposits at the beginning of the period
|
4,002.0
|
3,959.4
|
3,999.6
|
3,948.7
| ||||||||||||
Cash and cash equivalents, marketable securities and short term deposits at the end of the period
|
$
|
3,834.6
|
$
|
3,896.4
|
$
|
3,834.6
|
$
|
3,896.4
|
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Disclaimer
Check Point Software Technologies Ltd. published this content on 28 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 October 2021 10:21:07 UTC.