UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of January, 2009
Commission File Number 0-28584
| CHECK POINT SOFTWARE TECHNOLOGIES LTD. |
| (Translation of registrant’s name into English) |
5 Ha’solelim
Street, Tel Aviv, Israel
(Address of principal
executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of 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 the registrant by furnishing the information contained in this Form, 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
| INVESTOR CONTACT: | MEDIA CONTACT: |
| Kip E. Meintzer | Greg Kunkel |
| Check Point Software Technologies | Check Point Software Technologies |
| +1 650.628.2040 | +1 650.628.2070 |
| ir@us.checkpoint.com | press@us.checkpoint.com |
CHECK POINT SOFTWARE REPORTS RECORD
FOURTH QUARTER AND FISCAL YEAR 2008 FINANCIAL RESULTS
Fiscal Year 2008:
Revenue: $808.5 million
– 11% increase year over year
Operating Income
Non-GAAP: $425.8 – 15% increase year over year
EPS Non-GAAP: $1.78
– 12% increase year over year
Deferred Revenues: $330.8
million – 21% increase year over year
Cash Flow from
Operations: $429.9 million – 16% increase year over year
REDWOOD CITY, Calif., – January 27, 2009 – Check Point® Software Technologies Ltd. (NASDAQ: CHKP), the worldwide leader in securing the Internet, today announced its financial results for the fourth quarter and fiscal year ended December 31, 2008.
“Our financial results for the year continued to underscore the success of our Total Security strategy. This was an all time record quarter and fiscal year for Check Point,” said Gil Shwed, chairman and chief executive officer at Check Point. “As a result of the technology leadership of our products and the great work of our teams worldwide, we were able to achieve revenue growth of 11 percent to $808 million and non-GAAP operating income growth of 15 percent to $426 million.”
Financial Highlights for the Fourth Quarter Ended December 31, 2008:
| — | Total Revenues: $217.6 million, compared to $206.7 million in the fourth quarter of 2007. |
| — | Operating Income: GAAP operating income was $103.7 million, or 48 percent of revenues, compared to $88.2 million, or 43 percent of revenues in the fourth quarter of 2007. |
| Non-GAAP operating income was $120.7 million, or 55 percent of revenues, compared to $107.4 million, or 52 percent of revenues in the fourth quarter of 2007. |
| — | Net
Income: GAAP net income was $86.5 million compared to $87.9 million in the fourth
quarter of 2007. Non-GAAP net income was $105.6 million compared to $102.5 million in the fourth quarter of 2007. |
| — | Earnings
per Diluted Share (EPS): GAAP EPS was $0.41 compared to $0.39 in the fourth quarter
of 2007. Non-GAAP EPS was $0.50 compared to $0.46 in the fourth quarter of 2007. |
| — | Deferred Revenues: $330.8 million, which represented an increase of $57.1 million, or 21 percent, compared to deferred revenues of $273.7 as of December 31, 2007. |
| — | Share Repurchase Program: During the fourth quarter of 2008, Check Point repurchased approximately 3.4 million shares at a total cost of $66.7 million. |
“During the course of the year we continued to experience good performance from all geographies, including the United States and Europe. The investments we have made in emerging markets began to pay off as we realized over 20 percent growth in Asia and Eastern Europe and over 40 percent growth in Latin America and the Middle East,” said Shwed. “We continued to demonstrate our operational discipline by completing 2008 with record operating margins (Non-GAAP) of 53 percent for the full year and 55 percent in the fourth quarter.”
Financial Highlights for the Year Ended December 31, 2008
| — | Revenues: $808.5 million, an increase of 11 percent compared to $730.9 million in 2007. |
| — | Operating
Income: GAAP operating income was $356.5 million, or 44 percent of revenues, compared
to $279.6 million, or 38 percent of revenues in 2007. Non-GAAP operating income grew by 15 percent and was $425.8 million, or 53 percent of revenues, compared to $370.6 million, or 51 percent of revenues in 2007. |
| — | Net
Income: GAAP net income was $324.0 million, an increase of 15 percent, compared to $281.1
million in 2007. Non-GAAP net income was $386.0 million, an increase of 8 percent compared to $358.7 in 2007. |
| — | Earnings per Diluted Share (EPS): GAAP EPS was $1.50, an increase of 20 percent, compared to $1.25
in 2007. Non-GAAP EPS was $1.78, an increase of 12 percent, compared to $1.59 in 2007. |
| — | Cash Flow: Cash flow from operations was $429.9 million, an increase of 16 percent, compared to $371.6 million in 2007. |
| — | Cash and Investments Balance: $1.444 billion as of December 31, 2008 compared to $1.242 billion in 2007. |
| — | Share Repurchase Program: During 2008, Check Point repurchased approximately 10.9 million shares at an approximate total cost of $239.5 million of the 2008 and the 2007 plans approved by the board. There is approximately $233.7 million remaining of the $400 million authorized under Check Point’s share repurchase program in 2008. |
For information regarding the non-GAAP financial measures discussed in this release, please see “Use of Non-GAAP Financial Information” and “Reconciliation of Non-GAAP to GAAP Financial Information.”
Check Point Total
Security
In 2008 we launched our Total
Security strategy that combines network, data and endpoint protections into a unified
security architecture to deliver uncompromised security: a unified line of gateways, a
single agent ensures endpoint security, and a single management console all designed to
provide a standardized and efficient security infrastructure to improve security, reduce
complexity and ultimately lower total cost of ownership.
Expanded Security Appliance lines
In addition, we expanded our network
security appliance solutions with the introduction of five new models of the UTM-1 line of
security appliances, and a new line of Power-1 high end security appliances that set a new
mark for price/performance at a cost of less than $4/Mbps.
Innovation in End Point Security
Finally, we introduced and shipped
the industry’s first and only single agent for endpoint security that includes a
personal firewall, remote-access VPN, anti-virus/anti-spyware, media/port security, and
data security utilizing our market leading full disk encryption. Our security architecture
can be scaled to businesses of any size and is managed with Check Point’s market
leading SmartCenter management solutions.
Nokia’s Security Appliance Business Proposed Acquisition
During the fourth quarter we
announced an agreement to further expand our network security appliance line with the
proposed acquisition of Nokia’s Enterprise Security Business. Over the last decade,
Nokia has partnered with Check Point by providing a hardware platform (appliance) that
runs Check Point security software. Nokia’s appliances have been utilized by 85% of
the Fortune 500 companies. 220,000 Nokia appliances have been installed with over 23,000
customers worldwide. Nokia decided to exit the enterprise market segment, and we are
pleased to have the opportunity to acquire the security appliance part of Nokia’s
business. Once the acquisition is completed, Check Point expects to be able to provide
customers with an expanded line of integrated gateway solutions, with a single source for
development, delivery and service. The acquisition is expected to close in the first
quarter of 2009.
Concluded Shwed, “I’d like to thank our customers, partners and employees for the great results we generated in 2008 despite the challenging economic environment. While it’s hard to predict the effect of the economy on our market, we will continue to invest and innovate. We are starting 2009 with an even more exciting technology roadmap that we believe will revolutionize the security market and extend the reach of our Total Security vision.”
Conference Call and
Webcast Information
Check Point will host a conference
call with the investment community on January 27, 2009 at 8:30 AM ET/5:30 AM PT. To listen
to the live webcast, please visit Check Point’s website at
http://www.checkpoint.com/ir. A replay of the conference call will be available
through February 10, 2009 at the company’s website
http://www.checkpoint.com/ir or by telephone at +1.201.612.7415, replay ID number
308697.
About Check Point
Software Technologies Ltd.
Check Point Software Technologies
Ltd. (www.checkpoint.com) is the leader in securing the Internet. Check Point
offers total security solutions featuring a unified gateway, single endpoint agent and
single management architecture, customized to fit customers’ dynamic business needs.
This combination is unique and is a result of our leadership and innovation in the
enterprise firewall, personal firewall/endpoint, data security and VPN markets.
Check Point’s pure focus is on information security. Through its NGX platform, Check Point delivers a unified security architecture to protect business communications and resources, including corporate networks and applications, remote employees, branch offices and partner extranets. The company also offers market-leading endpoint and data security solutions with Check Point Endpoint Security products, protecting and encrypting sensitive corporate information stored on PCs and other mobile computing devices. Check Point’s award-winning ZoneAlarm solutions protect millions of consumer PCs from hackers, spyware and identity theft. Check Point solutions are sold, integrated and serviced by a network of Check Point partners around the world and its customers include 100 percent of Fortune 100 companies and tens of thousands of businesses and organizations of all sizes.
©2003–2009 Check Point Software Technologies Ltd. All rights reserved.
Use of Non-GAAP Financial
Information
In addition to reporting financial
results in accordance with generally accepted accounting principles, or GAAP, Check Point
uses non-GAAP measures of net income, operating income and earnings per share, which are
adjustments from results based on GAAP to exclude non-cash equity-based compensation
charges recorded in accordance with SFAS 123R, acquired in-process R&D expense
(related to the Protect Data acquisition), amortization of intangible assets (related to
the acquisitions of Zone Labs, NFR & Protect Data), other than temporary impairment of
marketable securities in accordance with SFAS 115, and the related tax affect. 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.
Safe Harbor Regarding
Forward Looking Statements
This press release contains
forward-looking statements within the meaning of Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934, including, but not
limited to, statements related to our plans to further increase the breadth of our
security solutions portfolio, and to continue delivering products based on our unified
security architecture; our plan to continue to innovate and deliver products to address
our customers’ security requirements – at every size of organization worldwide;
and our expectations regarding our proposed acquisition of the security appliance part of
Nokia’s business, including our expectations with respect to the closing of the
acquisition and our expectations for the business once the acquisition is completed.
Because these statements pertain to future events they are subject to various risks and
uncertainties, actual results could differ materially from Check Point’s current
expectations and beliefs. Factors that could cause or contribute to such differences
include, but are not limited to: Check Point’s development and delivery of its
security products; general market conditions in the Check Point’s industry; economic
and political uncertainties; the impact of political changes and weaknesses in various
regions of the world, including hostilities or acts of terrorism in Israel,
where Check Point’s international headquarters are based; inclusion of network
security functionality in third-party hardware or system software; any foreseen and
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; rapid technological advances and changes in customer
requirements to which Check Point is unable to respond expeditiously, if at all; a shift
in demand for products such as Check Point’s; factors affecting third parties with
which Check Point has formed business alliances; the timely availability and customer
acceptance of Check Point’s new and existing products; in connection with Check
Point’s proposed acquisition of Nokia’s security appliance business, the
inability to obtain necessary regulatory approval or to obtain them on acceptable terms,
or the inability of the parties to satisfy the conditions to closing; the inability to
integrate successfully Nokia’s security appliance business within Check Point or to
realize synergies from such integration; costs related to the acquisition of Nokia’s
security appliance business; and the economic environment of the industries in which Check
Point and Nokia’s security appliance business operate. The forward-looking statements
contained in this press release are subject to other factors and risks, including those
discussed in Check Point’s Annual Report on Form 20-F for the year ended December 31,
2007, which is on file with the Securities and Exchange Commission. Check Point assumes no
obligation to update these forward-looking statements.
CHECK POINT SOFTWARE TECHNOLOGIES LTD.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share amounts)
| Three Months Ended |
Year Ended |
|||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31, |
December 31, |
|||||||||||||
| 2008 |
2007 |
2008 |
2007 | |||||||||||
| (unaudited) | (unaudited) | (unaudited) | (audited) | |||||||||||
| Revenues: | ||||||||||||||
| Products and licenses | $ | 94,040 | $ | 93,529 | $ | 338,317 | $ | 309,785 | ||||||
| Software updates, | ||||||||||||||
| maintenance and services | 123,527 | 113,175 | 470,173 | 421,092 | ||||||||||
| Total revenues | 217,567 | 206,704 | 808,490 | 730,877 | ||||||||||
| Operating expenses: | ||||||||||||||
| Cost of products and licenses | 11,889 | 9,778 | 40,842 | 30,276 | ||||||||||
| Cost of software updates, | ||||||||||||||
| maintenance and services | 6,421 | 6,695 | 27,213 | 24,301 | ||||||||||
| Amortization of technology | 5,800 | 7,154 | 24,554 | 27,724 | ||||||||||
| Total cost of revenues | 24,110 | 23,627 | 92,609 | 82,301 | ||||||||||
| Research and development | 21,867 | 21,454 | 91,629 | 80,982 | ||||||||||
| Selling and marketing | 53,395 | 57,638 | 214,439 | 217,491 | ||||||||||
| General and administrative | 14,448 | 15,768 | 53,313 | 53,527 | ||||||||||
| Acquired in process | ||||||||||||||
| research and development | - | - | - | 17,000 | ||||||||||
| Total operating expenses | 113,820 | 118,487 | 451,990 | 451,301 | ||||||||||
| Operating income | 103,747 | 88,217 | 356,500 | 279,576 | ||||||||||
| Financial income, net | 10,525 | 13,443 | 47,973 | 49,725 | ||||||||||
| Other than temporary Impairment* | (8,933 | ) | - | (11,221 | ) | - | ||||||||
| Income before income taxes | 105,339 | 101,660 | 393,252 | 329,301 | ||||||||||
| Taxes on income | 18,865 | 13,743 | 69,286 | 48,237 | ||||||||||
| Net income | $ | 86,474 | $ | 87,917 | $ | 323,966 | $ | 281,064 | ||||||
| Earnings per share (basic) | $ | 0.41 | $ | 0.40 | $ | 1.51 | $ | 1.26 | ||||||
| Number of shares used in computing | ||||||||||||||
| earnings per share (basic) | 211,731 | 220,132 | 214,361 | 222,548 | ||||||||||
| Earnings per share (diluted) | $ | 0.41 | $ | 0.39 | $ | 1.50 | $ | 1.25 | ||||||
| Number of shares used in computing | ||||||||||||||
| earnings per share (diluted) | 212,874 | 222,993 | 216,668 | 225,442 | ||||||||||
* Year ended December 31, 2008 and the three months ended December 31, 2008 include non cash write down of $ 11.2 million and $8.9 million respectively, of our marketable securities in accordance with SFAS 115.
CHECK POINT SOFTWARE TECHNOLOGIES LTD.
RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL INFORMATION
(In thousands, except per share amounts)
| Three Months Ended |
Year Ended |
|||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31, |
December 31, |
|||||||||||||
| 2008 |
2007 |
2008 |
2007 | |||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||
| GAAP operating income | $ | 103,747 | $ | 88,217 | $ | 356,500 | $ | 279,576 | ||||||
| Stock-based compensation (1) | 8,014 | 8,827 | 32,327 | 34,052 | ||||||||||
| Amortization of intangible assets (2) | 8,893 | 10,338 | 36,982 | 39,984 | ||||||||||
| Acquired in process research and | ||||||||||||||
| development | - | - | - | 17,000 | ||||||||||
| Non-GAAP operating income | $ | 120,654 | $ | 107,382 | $ | 425,809 | $ | 370,612 | ||||||
| GAAP net income | $ | 86,474 | $ | 87,917 | $ | 323,966 | $ | 281,064 | ||||||
| Stock-based compensation (1) | 8,014 | 8,827 | 32,327 | 34,052 | ||||||||||
| Amortization of intangible assets (2) | 8,893 | 10,338 | 36,982 | 39,984 | ||||||||||
| Acquired in process research and | ||||||||||||||
| development (3) | - | - | - | 17,000 | ||||||||||
| Other than temporary impairment of | ||||||||||||||
| marketable securities (4) | 8,933 | - | 11,221 | - | ||||||||||
| Taxes on stock-based compensation, | ||||||||||||||
| amortization of intangible assets and | ||||||||||||||
| other than temporary impairment (5) | (6,673 | ) | (4,576 | ) | (18,540 | ) | (13,358 | ) | ||||||
| Non-GAAP net income | $ | 105,641 | $ | 102,506 | $ | 385,956 | $ | 358,742 | ||||||
| GAAP Earnings per share (diluted) | $ | 0.41 | $ | 0.39 | $ | 1.50 | $ | 1.25 | ||||||
| Stock-based compensation (1) | 0.04 | 0.04 | 0.15 | 0.15 | ||||||||||
| Amortization of intangible assets (2) | 0.04 | 0.05 | 0.17 | 0.18 | ||||||||||
| Acquired in process research and | ||||||||||||||
| development (3) | - | - | - | 0.07 | ||||||||||
| Other than temporary impairment of | ||||||||||||||
| marketable securities (4) | 0.04 | - | 0.05 | - | ||||||||||
| Taxes on stock-based compensation, | ||||||||||||||
| amortization of intangible assets and | ||||||||||||||
| other than temporary impairment (5) | (0.03 | ) | (0.02 | ) | (0.09 | ) | (0.06 | ) | ||||||
| Non-GAAP Earnings per share (diluted) | $ | 0.50 | $ | 0.46 | $ | 1.78 | $ | 1.59 | ||||||
| Number of shares used in computing | ||||||||||||||
| Non-GAAP earnings per share (diluted) | 212,874 | 222,993 | 216,668 | 225,442 | ||||||||||
| (1) Stock-based compensation: | ||||||||||||||
| Cost of products and licenses | $ | 6 | $ | 14 | $ | 48 | $ | 65 | ||||||
| Cost of software updates, | ||||||||||||||
| maintenance and services | 174 | 197 | 684 | 668 | ||||||||||
| Research and development | 1,372 | 1,014 | 5,037 | 4,309 | ||||||||||
| Selling and marketing | 993 | 1,973 | 6,855 | 8,780 | ||||||||||
| General and administrative | 5,469 | 5,629 | 19,703 | 20,230 | ||||||||||
| 8,014 | 8,827 | 32,327 | 34,052 | |||||||||||
| (2) Amortization of intangible assets: | ||||||||||||||
| Cost of products and licenses | 5,800 | 7,154 | 24,554 | 27,724 | ||||||||||
| Selling and marketing | 3,093 | 3,184 | 12,428 | 12,260 | ||||||||||
| 8,893 | 10,338 | 36,982 | 39,984 | |||||||||||
| (3) Acquired in process research and | ||||||||||||||
| development | - | - | - | 17,000 | ||||||||||
| (4) Other than temporary impairment* | ||||||||||||||
| Financial income, net | 8,933 | - | 11,221 | - | ||||||||||
| (5) Taxes on stock-based | ||||||||||||||
| compensation, amortization of | ||||||||||||||
| intangible assets and other than | ||||||||||||||
| temporary impairment | (6,673 | ) | (4,576 | ) | (18,540 | ) | (13,358 | ) | ||||||
| Total , net | $ | 19,167 | $ | 14,589 | $ | 61,990 | $ | 77,678 | ||||||
* Year ended December 31, 2008 and the three months ended December 31, 2008 include non cash write down of $ 11.2 million and $8.9 million respectively, of our marketable securities in accordance with SFAS 115.
CHECK POINT SOFTWARE TECHNOLOGIES LTD.
CONDENSED CONSOLIDATED BALANCE SHEET DATA
(In thousands)
ASSETS
| December 31, 2008 |
December 31, 2007 | |||||||
|---|---|---|---|---|---|---|---|---|
| (unaudited) | (audited) | |||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 543,190 | $ | 509,664 | ||||
| Marketable securities and deposits | 371,197 | 332,355 | ||||||
| Trade receivables, net | 251,771 | 201,515 | ||||||
| Other current assets | 28,372 | 21,595 | ||||||
| Total current assets | 1,194,530 | 1,065,129 | ||||||
| Long-term assets: | ||||||||
| Marketable securities | 529,445 | 399,490 | ||||||
| Property, plant and equipment, net | 56,435 | 56,947 | ||||||
| Severance pay fund | 5,817 | 9,302 | ||||||
| Deferred income taxes, net | 19,003 | 14,920 | ||||||
| Intangible assets, net | 123,151 | 160,133 | ||||||
| Goodwill | 664,602 | 664,910 | ||||||
| Other assets | 633 | 636 | ||||||
| Total long-term assets | 1,399,086 | 1,306,338 | ||||||
| Total assets | $ | 2,593,616 | $ | 2,371,467 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Deferred revenues | $ | 330,797 | $ | 273,693 | ||||
| Trade payables and other accrued liabilities | 112,556 | 116,406 | ||||||
| Total current liabilities | 443,353 | 390,099 | ||||||
| Income tax accrual | 101,230 | 78,545 | ||||||
| Deferred tax liability, net | 22,225 | 31,465 | ||||||
| Accrued severance pay | 10,943 | 14,403 | ||||||
| Total liabilities | 577,751 | 514,512 | ||||||
| Shareholders' equity: | ||||||||
| Share capital | 774 | 774 | ||||||
| Additional paid-in capital | 503,408 | 464,330 | ||||||
| Treasury shares at cost | (1,105,250 | ) | (907,022 | ) | ||||
| Accumulated other comprehensive income (loss) | ||||||||
| (4,673 | ) | 1,233 | ||||||
| Retained earnings | 2,621,606 | 2,297,640 | ||||||
| Total shareholders' equity | 2,015,865 | 1,856,955 | ||||||
| Total liabilities and shareholders' equity | $ | 2,593,616 | $ | 2,371,467 | ||||
| Total cash and cash equivalents and marketable | ||||||||
| securities | $ | 1,443,832 | $ | 1,241,509 | ||||
CHECK POINT SOFTWARE TECHNOLOGIES LTD.
SELECTED CONSOLIDATED CASH FLOW DATA
(In thousands)
| Three Months Ended |
Year Ended |
|||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31, |
December 31, |
|||||||||||||
| 2008 |
2007 |
2008 |
2007 | |||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||
| Cash flow from operating activities: | ||||||||||||||
| Net income | $ | 86,474 | $ | 87,917 | $ | 323,966 | $ | 281,064 | ||||||
| Adjustments to reconcile net income to net cash provided by | ||||||||||||||
| operating activities: | ||||||||||||||
| Depreciation and amortization of property, plant and equipment | 2,140 | 3,995 | 8,813 | 8,541 | ||||||||||
| Other than temporary impairment | 8,933 | - | 11,221 | - | ||||||||||
| Acquisition of in-process research and development | - | - | - | 17,000 | ||||||||||
| Amortization of intangible assets | 8,893 | 10,338 | 36,982 | 39,984 | ||||||||||
| Stock-based compensation | 8,014 | 8,827 | 32,327 | 34,052 | ||||||||||
| Increase in trade and other receivables, net | (92,455 | ) | (68,080 | ) | (53,941 | ) | (24,242 | ) | ||||||
| Increase in deferred revenues, trade payables and other accrued | ||||||||||||||
| liabilities | 72,098 | 65,467 | 97,478 | 48,246 | ||||||||||
| Excess tax benefit from stock-based compensation | (3,459 | ) | (6,828 | ) | (13,019 | ) | (6,828 | ) | ||||||
| Deferred income taxes, net | (1,265 | ) | (10,359 | ) | (13,926 | ) | (26,222 | ) | ||||||
| Net cash provided by operating activities | 89,373 | 91,277 | 429,901 | 371,595 | ||||||||||
| Cash flow from investing activities: | ||||||||||||||
| Cash paid in conjunction with the acquisition of Protect Data, net | - | (456 | ) | (9,042 | ) | (594,964 | ) | |||||||
| Investment in property, plant and equipment | (1,363 | ) | (4,089 | ) | (8,301 | ) | (16,727 | ) | ||||||
| Net cash used in investing activities | (1,363 | ) | (4,545 | ) | (17,343 | ) | (611,691 | ) | ||||||
| Cash flow from financing activities: | ||||||||||||||
| Proceeds from issuance of shares upon exercise of options | 7,769 | 1,751 | 35,045 | 24,640 | ||||||||||
| Purchase of treasury shares | (66,717 | ) | (61,858 | ) | (239,542 | ) | (209,757 | ) | ||||||
| Excess tax benefit from stock-based compensation | 3,459 | 6,828 | 13,019 | 6,828 | ||||||||||
| Net cash used in financing activities | (55,489 | ) | (53,279 | ) | (191,478 | ) | (178,289 | ) | ||||||
| Unrealized gain (loss) on marketable securities, net | 10,067 | 3,227 | (18,757 | ) | 9,956 | |||||||||
| Increase (decrease) in cash and cash equivalents, deposits and | ||||||||||||||
| marketable securities | 42,588 | 36,680 | 202,323 | (408,429 | ) | |||||||||
| Cash and cash equivalents, deposits and marketable securities | ||||||||||||||
| at the beginning of the period | 1,401,244 | 1,204,829 | 1,241,509 | 1,649,938 | ||||||||||
| Cash and cash equivalents, deposits and marketable securities | ||||||||||||||
| at the end of the period | $ | 1,443,832 | $ | 1,241,509 | $ | 1,443,832 | $ | 1,241,509 | ||||||
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/ Tal Payne —————————————— Tal Payne Chief Financial Officer |
January 27, 2009