FORM 6-K
SECURITIES AND
EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities
Exchange Act of 1934
For the month of April, 2005
Commission File Number 0-28584
| CHECK POINT SOFTWARE TECHNOLOGIES LTD. |
| (Translation of registrant’s name into English) |
| 3A Jabotinsky Street, Ramat-Gan 52520, Israel |
| (Address of principal executive offices) |
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F x Form 40-F o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes o No x
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ________
FOR IMMEDIATE RELEASE
| Media Contact: | Investor Contact: |
| Elena Annuzzi | Janine Zanelli |
| Check Point Software Technologies | Check Point Software Technologies |
| 650.628.2060 | 650.628.2040 |
| press@us.checkpoint.com | ir@us.checkpoint.com |
CHECK POINT SOFTWARE REPORTS FINANCIAL RESULTS FOR THE FIRST QUARTER OF 2005
2005 First Quarter Revenues Increased 19% over First Quarter of 2004
REDWOOD CITY, Calif., – April 18, 2005 – Check Point Software Technologies Ltd. (NASDAQ: CHKP), the worldwide leader in securing the Internet, today announced its financial results for the first quarter ended March 31, 2005.
| Financial Highlights for the First Quarter of 2005 |
| — | Revenues: $137.7 million, an increase of 19% compared to $116.1 million in the first quarter of 2004. |
| — | Net Income: $73.7 million, an increase of 76% compared to $41.9 million in the first quarter of 2004. Net income excluding acquisition related charges1 was $75.8 million, an increase of 17% compared to $65 million in the first quarter of 2004. |
| — | Earnings per Diluted Share: $0.29, an increase of 78% compared to $0.16 in the first quarter of 2004. EPS excluding net acquisition related charges was $0.30, an increase of 18% compared to $0.25 in the first quarter of 2004. |
| — | Deferred Revenues: increased by $9.1 million to a record $150.2 million, a 6% increase over deferred revenues as of December 31, 2004. |
| — | Share Repurchase Program: During the first quarter of 2005, Check Point purchased 2.1 million shares at a total cost of close to $50 million. |
“We are pleased with our first quarter results, which showed significant growth in profits and revenues” said Gil Shwed, chairman and chief executive officer of Check Point Software “We continued to extend our annuity based revenues which were spearheaded by growing sales of two of our new offerings: ZoneAlarm security services for the consumer segment and SmartDefense real time security updates for our enterprise customers.”
1 “Acquisition related charges” refer to the impact of the amortization of intangible assets and stock-based compensation resulting from the acquisition of Zone Labs Inc., in March 2004.
Business Highlights and Introductions during the First Quarter:
| — | Unveiled Eventia™ Product Family of Security Event Management Solutions – designed to help IT security departments reduce the cost and complexity of security event correlation, management, and reporting. The first product unveiled, Eventia Analyzer™, automatically prioritizes security events for decisive, intelligent action and turns volumes of raw data into actionable information to empower security administrators to make informed decisions on their security deployment. |
| — | Unveiled Integrity™ 6.0 for Unmatched Endpoint Security – the most complete endpoint security solution, including intrusion prevention, outbound threat protection, access policy enforcement, advanced server and policy automation, protects PCs and enterprise networks proactively from the newest worms, viruses, spyware, and hacker attacks. |
| — | Released Connectra™ 2.0 – the newest version of Check Point’s revolutionary Web Security Gateway that provides SSL VPN access with integrated application and endpoint security. In addition, Connectra 2.0 includes secure browser and cache cleaning, endpoint host checking and real-time security updates. |
| — | Introduced a New Focus in our Highly Regarded OPSEC Partner Alliance – to help customers overcome today’s emerging network security threats through a comprehensive, best-of-breed security architecture. The new initiative focuses on six critical OPSEC solution areas – internal security, Web security, content security, Total Access Protection (TAP), Voice over IP (VoIP) and regulatory compliance. |
Partial List of Awards in the First Quarter:
| — | Leader in the Prestigious Gartner Magic Quadrant – for the fourth consecutive year Check Point ranked as a leader for Network Firewalls. This influential report evaluates both network and application firewall vendors on their ability to execute and completeness of vision. |
| — | Dramatically Outperformed Competitors in Tolly Group Tests – independent tests confirmed that Check Point provides the broadest breadth of security coverage at the lowest Total Cost of Ownership (TCO) for today’s complex security vulnerabilities. |
| — | VARBusiness Magazine Five-Star Rating for Channel Partner Program – The highest attainable ranking for outstanding breadth and depth of channel partner program offerings. |
| — | Three Prestigious Awards for 2005 SC Magazine Global Awards – Best Firewall award for the VPN-1®/FireWall-1® Next Generation™ with Application Intelligence™, Best Enterprise Security Solution for VPN-1 Pro™ Next Generation with Application Intelligence and Best SOHO Security Solution for ZoneAlarm® Security Suite. |
Mr. Shwed continues: “In Q2, we will remain focused on execution and will continue to expand the depth and breadth of our intelligent perimeter, internal, Web and endpoint security solutions, providing customers with the highest levels of protection.”
Conference Call and
Webcast Information
Check Point will host a conference
call with the investment community on April 18, 2005 at 8:30 AM ET/5:30 AM PT. A replay of
the conference call will be available through May 2 at the Company’s website
http://www.checkpoint.com/ir or by telephone at (201) 612-7415, access code 215 and
conference ID 146033.
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, 2004, 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 Ltd.
Check Point Software Technologies
Ltd. (www.checkpoint.com) is the worldwide leader in securing the Internet. It is
the market leader in the worldwide enterprise firewall, personal firewall and VPN markets.
Through its Next Generation product line, the company delivers a broad range of
intelligent Perimeter, Internal and Web security solutions that protect business
communications and resources for corporate networks and applications, remote employees,
branch offices and partner extranets. The company’s ZoneAlarm product line is one of
the most trusted brands in Internet security, creating award-winning endpoint security
solutions that protect millions of PCs from hackers, spyware and data theft. Extending the
power of the Check Point solution is its Open Platform for Security (OPSEC), the
industry’s framework and alliance for integration and interoperability with
“best-of-breed” solutions from over 350 leading companies. Check Point solutions
are sold, integrated and serviced by a network of more than 2,200 Check Point partners in
88 countries.
©2003-2005 Check Point Software
Technologies Ltd. All rights reserved.
Check Point, Application
Intelligence, Check Point Express, the Check Point logo, AlertAdvisor, ClusterXL,
Cooperative Enforcement, ConnectControl, Connectra, CoSa, Cooperative Security Alliance,
Eventia, Eventia Analyzer, FireWall-1, FireWall-1 GX, FireWall-1 SecureServer,
FloodGate-1, Hacker ID, IMsecure, INSPECT, INSPECT XL, Integrity, InterSpect, IQ Engine,
Open Security Extension, OPSEC, Policy Lifecycle Management, Provider-1, Safe@Home,
Safe@Office, SecureClient, SecureKnowledge, SecurePlatform, SecuRemote, SecureXL
Turbocard, SecureServer, SecureUpdate, SecureXL, SiteManager-1, SmartCenter, SmartCenter
Pro, Smarter Security, SmartDashboard, SmartDefense, SmartLSM, SmartMap, SmartUpdate,
SmartView, SmartView Monitor, SmartView Reporter, SmartView Status, SmartViewTracker,
SofaWare, SSL Network Extender, Stateful Clustering, TrueVector, Turbocard, UAM,
User-to-Address Mapping, UserAuthority, VPN-1, VPN-1 Accelerator Card, VPN-1 Edge, VPN-1
Pro, VPN-1 SecureClient, VPN-1 SecuRemote, VPN-1 SecureServer, VPN-1 VSX, VPN-1 XL, Web
Intelligence, ZoneAlarm, ZoneAlarm Pro, Zone Labs, and the Zone Labs logo, are trademarks
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, 5,835,726, 6,496,935 and 6,850,943 and may be protected by other U.S.
Patents, foreign patents, or pending applications.
CHECK POINT SOFTWARE
TECHNOLOGIES LTD.
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(In thousands, except per share amounts)
| Three Months Ended March 31, | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2005 |
2004 | |||||||
| (unaudited) | (unaudited) | |||||||
| Revenues: | ||||||||
| Licenses | $ | 65,522 | $ | 63,009 | ||||
| Software subscriptions | 58,447 | 44,013 | ||||||
| Total product revenues | 123,969 | 107,022 | ||||||
| Support, training and consulting | 13,692 | 9,040 | ||||||
| Total revenues | 137,661 | 116,062 | ||||||
| Operating expenses: | ||||||||
| Cost of revenues | 5,552 | 4,934 | ||||||
| Research and development | 12,776 | 8,662 | ||||||
| Selling and marketing | 34,061 | 28,598 | ||||||
| General and administrative | 6,248 | 4,850 | ||||||
| Amortization of intangible assets and stock-based compensation | 2,625 | - | ||||||
| Acquired in-process R&D | - | 23,098 | ||||||
| Total operating expenses | 61,262 | 70,142 | ||||||
| Operating income | 76,399 | 45,920 | ||||||
| Financial income, net | 12,401 | 10,769 | ||||||
| Income before taxes on income | 88,800 | 56,689 | ||||||
| Taxes on income | 15,094 | 14,761 | ||||||
| Net income | $ | 73,706 | $ | 41,928 | ||||
| Net income excluding in-process R&D and amortization of intangible assets | ||||||||
| and stock-based compensation | $ | 75,789 | $ | 65,026 | ||||
| Earnings per share (basic) | $ | 0.30 | $ | 0.17 | ||||
| Number of shares used in computing earnings per share (basic) | 247,894 | 250,189 | ||||||
| Earnings per share (fully diluted) | $ | 0.29 | $ | 0.16 | ||||
| Earnings per share (fully diluted) excluding in-process R&D and | ||||||||
| amortization of intangible assets and stock-based compensation | $ | 0.30 | $ | 0.25 | ||||
| Number of shares used in computing earnings per share (fully diluted) | 256,150 | 259,829 | ||||||
CHECK POINT SOFTWARE
TECHNOLOGIES LTD.
SELECTED CONSOLIDATED BALANCE SHEET DATA
(In thousands)
ASSETS
| March 31, 2005 |
December 31, 2004 | |||||||
|---|---|---|---|---|---|---|---|---|
| (unaudited) | (unaudited) | |||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 189,134 | $ | 157,655 | ||||
| Marketable securities | 864,667 | 796,588 | ||||||
| Trade receivables, net | 79,333 | 96,006 | ||||||
| Other receivables and prepaid expenses | 23,708 | 20,517 | ||||||
| Total current assets | 1,156,842 | 1,070,766 | ||||||
| Long-term assets: | ||||||||
| Long-term investments | 577,308 | 623,912 | ||||||
| Property and equipment, net | 7,981 | 8,144 | ||||||
| Intangible assets, net | 24,447 | 25,857 | ||||||
| Goodwill | 175,536 | 175,536 | ||||||
| Deferred income taxes, net | 8,597 | 8,439 | ||||||
| Total long-term assets | 793,869 | 841,888 | ||||||
| Total assets | $ | 1,950,711 | $ | 1,912,654 | ||||
| LIABILITIES AND | ||||||||
| SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Deferred revenues | $ | 150,164 | $ | 141,114 | ||||
| Trade payables and other accrued liabilities | 132,946 | 137,932 | ||||||
| Total current liabilities | 283,110 | 279,046 | ||||||
| Accrued severance pay, net | 3,316 | 2,784 | ||||||
| Total liabilities | 286,426 | 281,830 | ||||||
| Shareholders' Equity: | ||||||||
| Share capital | 774 | 771 | ||||||
| Additional paid-in capital | 375,138 | 369,452 | ||||||
| Deferred stock-based compensation | (6,570 | ) | (10,342 | ) | ||||
| Treasury shares at cost | (294,292 | ) | (244,586 | ) | ||||
| Retained earnings | 1,589,235 | 1,515,529 | ||||||
| Total shareholders' equity | 1,664,285 | 1,630,824 | ||||||
| Total liabilities and shareholders' equity | $ | 1,950,711 | $ | 1,912,654 | ||||
| Total cash and cash equivalents, deposits and | ||||||||
| marketable securities | 1,630,245 | 1,577,291 | ||||||
CHECK POINT SOFTWARE TECHNOLOGIES
LTD.
SELECTED CONSOLIDATED CASH FLOW DATA
(In thousands)
| Three Months Ended March 31, | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2005 |
2004 | |||||||
| (unaudited) | (unaudited) | |||||||
| Cash flow from operating activities: | ||||||||
| Net income | $ | 73,706 | $ | 41,928 | ||||
| Adjustments to reconcile net income to net cash provided by operating | ||||||||
| activities: | ||||||||
| Depreciation and amortization | 1,305 | 1,257 | ||||||
| Decrease (increase) in trade and other receivables, net | 13,489 | (8,023 | ) | |||||
| Increase in trade payables and other accrued liabilities | 4,594 | 4,259 | ||||||
| Other adjustments | 1,341 | 2,155 | ||||||
| Amortization of intangible assets and stock-based compensation | 2,625 | - | ||||||
| Acquisition of in-process R&D | - | 23,098 | ||||||
| Net cash provided by operating activities | 97,060 | 64,674 | ||||||
| Cash flow from investing activities: | ||||||||
| Cash paid in conjunction with the acquisition of Zone Labs, net | - | (95,343 | ) | |||||
| Investment in property and equipment | (1,142 | ) | (1,361 | ) | ||||
| Net cash used in investing activities | (1,142 | ) | (96,704 | ) | ||||
| Cash flow from financing activities: | ||||||||
| Proceeds from issuance of shares upon exercise of options | 6,742 | 11,252 | ||||||
| Purchase of treasury shares | (49,706 | ) | - | |||||
| Net cash provided by (used in) financing activities | (42,964 | ) | 11,252 | |||||
| Increase (decrease) in cash and cash equivalents and marketable securities | 52,954 | (20,778 | ) | |||||
| Cash and cash equivalents and marketable securities at the beginning of the | ||||||||
| period | 1,577,291 | 1,602,724 | ||||||
| Cash and cash equivalents and marketable securities at the end of the period | 1,630,245 | 1,581,946 | ||||||
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| CHECK POINT SOFTWARE TECHNOLOGIES LTD. BY: /S/ Eyal Desheh —————————————— Eyal Desheh Chief Financial Officer |
April 18, 2005