6-K

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 October, 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- ________

 
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 FINANCIAL RESULTS FOR THE
THIRD QUARTER 2009

All-Time Record Quarterly Results

  - Revenue: $233.6 million, representing 17 percent year over year growth

  - Non-GAAP EPS: $0.52, representing 19 percent year over year growth

  - Non-GAAP Operating Income: $127.5 million, representing 20 percent year over year growth, and 55 percent of revenues

  - Deferred Revenues: $360.1 million, representing 32 percent year over year growth

REDWOOD CITY, Calif., – October 22, 2009 – Check Point® Software Technologies Ltd. (NASDAQ: CHKP), the worldwide leader in securing the Internet, today announced record financial results for the third quarter ended September 30, 2009.

“I am proud of our ability to execute and deliver all-time record results across key metrics for the quarter. Our revenues came in at the high-end of our projections, with 17 percent growth, while non-GAAP earnings per share were $0.52, representing 19% growth, and exceeded our projections. This is particularly encouraging given the state of the economy and the weakness of the US dollar” said Gil Shwed, Chairman and Chief Executive Officer at Check Point, “Operationally, we performed well across all regions, with Asia Pacific having a particularly good quarter. We also continued to realize further synergies from our recent acquisition, which helped us to achieve these results and deliver non-GAAP operating margin of 55%.”

Financial Highlights for the Third Quarter of 2009

— Total Revenues: $233.6 million, an increase of 17 percent compared to $199.7 million in the third quarter of 2008.

— GAAP Operating Income: $105.5 million, an increase of 17 percent compared to $90.4 million in the third quarter of 2008. The GAAP operating income in the third quarter of 2009 included amortization of intangible assets in the amount of $5.4 million related to the Nokia security business acquisition.

— Non-GAAP1 Operating Income: $127.5 million, an increase of 20 percent compared to $106.2 million in the third quarter of 2008. Non-GAAP operating margin was 55 percent, compared to 53 percent in the third quarter of 2008, and 52 percent during the second quarter of 2009.

— GAAP Net Income and Earnings per Diluted Share: GAAP net income was $91.5 million, an increase of 14 percent compared to $80.1 million in the third quarter of 2008. GAAP earnings per diluted share were $0.43, an increase of 17 percent compared to $0.37 in the third quarter of 2008. GAAP net income in the third quarter of 2009 included amortization of intangible assets in the amount of $5.4 million (which represented $0.03 in GAAP earnings per diluted share) related to the Nokia security business acquisition. Net of taxes, these charges totaled $5.1 million ($0.02 per diluted share).

— Non-GAAP1 Net Income and Earnings per Diluted Share: Non-GAAP net income was $109.5 million, an increase of 16 percent compared to $94.2 million in the third quarter of 2008, and non-GAAP EPS was $0.52, an increase of 19 percent compared to $0.44 in the third quarter of 2008.

1 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.”

— Deferred Revenues: As of September 30, 2009, we had deferred revenue of $360.1 million, an increase of 32 percent compared to $272.9 as of September 30, 2008.

— Cash Flow: Cash flow from operations was $126.1 million, an increase of 10 percent compared to $115.1 million in the third quarter of 2008. We had $1,736.2 million in cash and investments as of September 30, 2009.

— Share Repurchase Program: During the third quarter of 2009, we repurchased 1.8 million shares at a total cost of $50 million.

Mr. Shwed concluded, “We continued to realize good traction from our latest product introductions, including the new SMART-1 management appliances, the high-end Power-1 11000 series and low-end UTM-1 130 appliances. Our Software Blade Architecture experienced excellent adoption by our customers as they continue to recognize the benefits of a secure, flexible and easily managed security platform.”

Conference Call and Webcast Information
Check Point will host a conference call with the investment community on October 22, 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 October 29, 2009 at the company’s website http://www.checkpoint.com/ir or by telephone at +1 201.612.7415, passcode # 335046, account # 215.

About Check Point Software Technologies Ltd.
Check Point Software Technologies Ltd. (www.checkpoint.com), a worldwide leader in securing the Internet, is the only vendor to delivers Total Security for networks, data and endpoints, unified under a single management framework. Check Point provides customers uncompromised protection against all types of threats, reduces security complexity and lowers total cost of ownership. Check Point first pioneered the industry with FireWall-1 and its patented stateful inspection technology. Today, Check Point continues to innovate with the development of the Software Blade architecture. The dynamic Software Blade architecture delivers secure, flexible and simple solutions that can be fully customized to meet the exact security needs of any organization or environment. Check Point customers include tens of thousands of businesses and organizations of all sizes, including [all Fortune 100 companies. Check Point’s award-winning ZoneAlarm solutions protect millions of consumers from hackers, spyware and identity theft.

© 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, impairment of marketable securities, amortization of acquired intangible assets, restructuring-related charges and the related tax affects. 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. Check Point’s management also believes the non-GAAP financial information provided in this release is useful to investors’ understanding and assessment of Check Point’s on-going core operations and prospects for the future. 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.

CHECK POINT SOFTWARE TECHNOLOGIES LTD.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(In thousands, except per share amounts)

Three Months Ended
 Nine Months Ended
September 30,
 September 30,
2009
 2008
 2009
 2008
(unaudited) (unaudited) (unaudited) (unaudited)
 
Revenues:                    
   Products and licenses   $ 86,882   $ 81,925   $ 241,427   $ 244,277  
   Software updates, maintenance and  
   services    146,759    117,795    410,867    346,646  
Total revenues    233,641    199,720    652,294    590,923  
   
Operating expenses:  
   Cost of products and licenses    18,598    10,267    45,061    28,953  
   Cost of software updates,  
   maintenance and services    10,033    6,941    26,637    20,792  
   Amortization of technology    7,471    5,800    20,501    18,754  
Total cost of revenues    36,102    23,008    92,199    68,499  
   
   Research and development    22,426    23,193    65,681    69,762  
   Selling and marketing    56,379    50,796    160,390    161,044  
   General and administrative    13,190    12,294    40,487    38,865  
   Restructuring    67    -    9,101    -  
Total operating expenses    128,164    109,291    367,858    338,170  
   
Operating income    105,477    90,429    284,436    252,753  
Financial income, net    7,825    10,039    24,368    30,351  
Other than temporary impairment on  
marketable securities    -    (2,288 )  -    (2,288 )
Income before income taxes    113,302    98,180    308,804    280,816  
Taxes on income    21,839    18,119    60,817    43,324  
Net income   $ 91,463   $ 80,061   $ 247,987   $ 237,492  
   
Earnings per share (basic)   $ 0.44   $ 0.37   $ 1.18   $ 1.10  
Number of shares used in computing  
earnings per share (basic)    208,738    213,728    209,465    215,247  
   
Earnings per share (diluted)   $ 0.43   $ 0.37   $ 1.17   $ 1.09  
Number of shares used in computing  
earnings per share (diluted)    211,688    216,567    211,790    217,942  

CHECK POINT SOFTWARE TECHNOLOGIES LTD.
RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL INFORMATION

(In thousands, except per share amounts)

Three Months Ended
 Nine Months Ended
September 30,
 September 30,
2009
 2008
 2009
 2008
(unaudited) (unaudited) (unaudited) (unaudited)
 
GAAP operating income     $ 105,477   $ 90,429   $ 284,436   $ 252,753  
Stock-based compensation (1)    7,695    6,857    22,769    24,313  
Amortization of intangible assets (2)    14,301    8,893    36,647    28,090  
Restructuring (3)    67    -    9,101    -  
Non-GAAP operating income   $ 127,540   $ 106,179   $ 352,953   $ 305,156  
   
GAAP net income   $ 91,463   $ 80,061   $ 247,987   $ 237,492  
Stock-based compensation (1)    7,695    6,857    22,769    24,313  
Amortization of intangible assets (2)    14,301    8,893    36,647    28,090  
Restructuring (3)    67    -    9,101    -  
Other than temporary impairment * (4)    -    2,288    -    2,288  
Taxes on stock-based compensation,  
amortization of intangible assets and  
other than temporary impairment (5)    (4,040 )  (3,849 )  (10,662 )  (11,867 )
Non-GAAP net income   $ 109,486   $ 94,250   $ 305,842   $ 280,316  
   
GAAP Earnings per share (diluted)   $ 0.43   $ 0.37   $ 1.17   $ 1.09  
Stock-based compensation (1)    0.04    0.04    0.11    0.11  
Amortization of intangible assets (2)    0.07    0.04    0.17    0.13  
Restructuring (3)    -    -    0.04    -  
Other than temporary impairment * (4)    -    0.01    -    0.01  
Taxes on stock-based compensation,  
amortization of intangible assets and  
other than temporary impairment (5)    (0.02 )  (0.02 )  (0.05 )  (0.05 )
Non-GAAP Earnings per share (diluted)   $ 0.52   $ 0.44   $ 1.44   $ 1.29  
   
Number of shares used in computing  
Non-GAAP earnings per share (diluted)    211,688    216,567    211,790    217,942  
   
(1) Stock-based compensation:  
      Cost of products and licenses   $ 14   $ 15   $ 35   $ 42  
      Cost of software updates,  
      maintenance and services    236    133    536    510  
      Research and development    1,998    1,364    4,771    3,665  
      Selling and marketing    1,769    1,696    4,485    5,862  
      General and administrative    3,678    3,649    12,942    14,234  
     7,695    6,857    22,769    24,313  
   
(2) Amortization of intangible assets:  
      Cost of products and licenses    7,471    5,800    20,501    18,754  
      Selling and marketing    6,830    3,093    16,146    9,336  
     14,301    8,893    36,647    28,090  
   
(3) Restructuring    67    -    9,101    -  
   
(4) Other than temporary impairment*  
      Financial income, net    -    2,288    -    2,288  
   
(5) Taxes on stock-based  
      compensation, amortization of  
      intangible assets and other than  
      temporary impairment    (4,040 )  (3,849 )  (10,662 )  (11,867 )
   
Total , net   $ 18,023   $ 14,189   $ 57,855   $ 42,824  

* Relates to impairment of Lehman Brothers bonds.

CHECK POINT SOFTWARE TECHNOLOGIES LTD.
CONDENSED CONSOLIDATED BALANCE SHEET DATA
(In thousands)
ASSETS

September 30,
2009
 December 31,
2008
(unaudited) (unaudited)
 
Current assets:            
Cash and cash equivalents   $ 608,221   $ 543,190  
Short-term deposit    -    26,302  
Marketable securities    348,898    344,895  
Trade receivables, net    191,156    251,771  
Other current assets    34,477    28,372  
Total current assets    1,182,752    1,194,530  
   
Long-term assets:  
Marketable securities    779,045    529,445  
Property, plant and equipment, net    39,956    40,248  
Severance pay fund    6,315    5,817  
Deferred income taxes, net    16,926    19,003  
Intangible assets, net    123,448    123,151  
Goodwill    708,458    664,602  
Other assets    21,167    16,820  
Total long-term assets    1,695,315    1,399,086  
   
Total assets   $ 2,878,067   $ 2,593,616  
   
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities:  
Deferred revenues   $ 322,764   $ 289,998  
Trade payables and other accrued liabilities    145,191    112,556  
Total current liabilities    467,955    402,554  
   
Long-term deferred revenues    37,361    40,799  
Income tax accrual    121,138    101,230  
Deferred tax liability, net    15,127    22,225  
Accrued severance pay    11,125    10,943  
   
Total liabilities    652,706    577,751  
   
Shareholders' equity:  
Share capital    774    774  
Additional paid-in capital    512,200    503,408  
Treasury shares at cost    (1,173,239 )  (1,105,250 )
Accumulated other comprehensive income (loss)    16,895    (4,673 )
Retained earnings    2,868,731    2,621,606  
Total shareholders' equity    2,225,361    2,015,865  
Total liabilities and shareholders' equity   $ 2,878,067   $ 2,593,616  
Total cash and cash equivalents, deposits and  
marketable securities   $ 1,736,164   $ 1,443,832  

CHECK POINT SOFTWARE TECHNOLOGIES LTD.
SELECTED CONSOLIDATED CASH FLOW DATA
(In thousands)

Three Months Ended
 Nine Months Ended
September 30,
 September 30,
2009
 2008
 2009
 2008
(unaudited) (unaudited) (unaudited) (unaudited)
 
Cash flow from operating activities:                    
Net income   $ 91,463   $ 80,061   $ 247,987   $ 237,492  
Adjustments to reconcile net income to net cash provided by  
operating activities:  
Depreciation and amortization of property, plant and equipment    2,190    2,257    7,226    6,548  
Other than temporary impairment    -    2,288    -    2,288  
Decrease (increase) in trade and other receivables, net    (50 )  1,770    85,050    38,638  
   
Increase in deferred revenues, trade payables and other  
accrued liabilities    15,494    20,836    24,769    25,380  
   
Amortization of intangible assets    14,301    8,893    36,647    28,090  
Realized loss on marketable securities    -    -    1,896    -  
Stock-based compensation    7,695    6,857    22,768    24,313  
Excess tax benefit from stock-based compensation    (2,474 )  (3,531 )  (6,988 )  (9,560 )
Deferred income taxes, net    (2,487 )  (4,338 )  (8,729 )  (12,661 )
Net cash provided by operating activities    126,132    115,093    410,626    340,528  
   
Cash flow from investing activities:  
Cash paid in conjunction with the acquisition of Protect Data, net    -    -    -    (9,042 )
Cash paid in conjunction with the acquisition of Nokia    -    -    (57,540 )  -  
Investment in property, plant and equipment    (1,043 )  (2,412 )  (3,644 )  (6,938 )
Net cash used in investing activities    (1,043 )  (2,412 )  (61,184 )  (15,980 )
   
Cash flow from financing activities:  
   
Proceeds from issuance of shares upon exercise of options    20,166    11,504    62,469    27,276  
Purchase of treasury shares    (50,000 )  (49,825 )  (152,286 )  (172,825 )
Excess tax benefit from stock-based compensation    2,474    3,531    6,988    9,560  
Net cash used in financing activities    (27,360 )  (34,790 )  (82,829 )  (135,989 )
   
Unrealized gain (loss) on marketable securities, net    8,255    (19,420 )  25,719    (28,824 )
   
Increase in cash and cash equivalents, deposits and  
marketable securities    105,984    58,471    292,332    159,735  
   
Cash and cash equivalents, deposits and marketable securities  
at the beginning of the period    1,630,180    1,342,773    1,443,832    1,241,509  
Cash and cash equivalents, deposits and marketable securities  
at the end of the period   $ 1,736,164   $ 1,401,244   $ 1,736,164   $ 1,401,244  

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.




October 22, 2009		 CHECK POINT SOFTWARE TECHNOLOGIES LTD.


By: /s/ Tal Payne
——————————————
Tal Payne
Chief Financial Officer