CHECK POINT SOFTWARE TECHNOLOGIES LTD.
(Translation of registrant's name into English)
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5 Ha’solelim Street, Tel Aviv, Israel
(Address of principal executive offices)
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softwarebladesTM |
©2012 Check Point Software Technologies Ltd. All rights reserved.
Classification: [Unrestricted] For Everyone| P. 1
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INVESTOR CONTACT:
Kip E. Meintzer
Check Point Software Technologies
+1.650.628.2040
ir@checkpoint.com
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MEDIA CONTACT:
James Rivas
Check Point Software Technologies
+1.650.628.2215
press@checkpoint.com
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Total Revenue: $332.4 million, representing an 8 percent increase year-over-year
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Non-GAAP Operating Income: $195.6 million, representing 59 percent of revenues
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Non-GAAP EPS: $0.79, representing a 10 percent increase year over year
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Total Revenue: $332.4 million, an increase of 8 percent, compared to $308.3 million in the third quarter of 2011.
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GAAP Operating Income: $182.6 million, an increase of 15 percent, compared to $158.2 million in the third quarter of 2011. GAAP operating margin was 55 percent, compared to 51 percent in the third quarter of 2011.
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Non-GAAP Operating Income: $195.6 million, an increase of 8 percent, compared to $180.7 million in the third quarter of 2011. Non-GAAP operating margin was 59 percent, the same as in the third quarter of 2011.
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GAAP Net Income and Earnings per Diluted Share: GAAP net income was $152.4 million, an increase of 14 percent, compared to $134.1 million in the third quarter of 2011. GAAP earnings per diluted share were $0.73, an increase of 16 percent, compared to $0.63 in the third quarter of 2011.
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Non-GAAP Net Income and Earnings per Diluted Share: Non-GAAP net income was $164.1 million, an increase of 7 percent, compared to $152.9 million in the third quarter of 2011. Non-GAAP earnings per diluted share were $0.79, an increase of 10 percent, compared to $0.72, in the third quarter of 2011.
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Deferred Revenues: As of September 30, 2012, we had deferred revenues of $505.9 million, an increase of 11 percent, compared to $454.5 million as of September 30, 2011.
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Cash Flow: Cash flow from operations was $180.4 million, an increase of 17%, compared to $154.5 million in the third quarter of 2011.
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Share Repurchase Program: During the third quarter of 2012, we repurchased 3.2 million shares at a total cost of $156.1 million.
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Cash Balances, Marketable Securities and Short Term Deposits: $3,246.8 million as of September 30, 2012, an increase of $470.3 million, compared to $2,776.5 million as of September 30, 2011.
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softwarebladesTM |
©2012 Check Point Software Technologies Ltd. All rights reserved.
Classification: [Unrestricted] For Everyone| P. 2
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Wells Fargo Securities Media & Technology Conference
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November 7, 2012 – New York, NY
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UBS Global Technology Conference
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November 15, 2012 – New York, NY
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Credit Suisse Annual Technology Conference
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November 27, 2012 – Scottsdale, AZ
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29th Annual NASDAQ OMX Investor Program
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December 4, 2012 London, UK
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softwarebladesTM |
©2012 Check Point Software Technologies Ltd. All rights reserved.
Classification: [Unrestricted] For Everyone| P. 3
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softwarebladesTM |
©2012 Check Point Software Technologies Ltd. All rights reserved.
Classification: [Unrestricted] For Everyone| P. 4
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Three Months Ended
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Nine Months Ended
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September 30,
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September 30,
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|||||||||||||||
2012
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2011
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2012
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2011
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(unaudited)
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(unaudited)
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(unaudited)
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(unaudited)
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Revenues:
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Products and licenses
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$ | 121,036 | $ | 120,700 | $ | 354,373 | $ | 345,246 | ||||||||
Software updates, maintenance and subscription
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211,320 | 187,610 | 619,748 | 544,982 | ||||||||||||
Total revenues
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332,356 | 308,310 | 974,121 | 890,228 | ||||||||||||
Operating expenses:
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Cost of products and licenses
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20,606 | 18,760 | 60,881 | 55,395 | ||||||||||||
Cost of software updates, maintenance and subscription
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17,380 | 16,066 | 50,164 | 45,986 | ||||||||||||
Amortization of technology
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294 | 7,849 | 3,688 | 23,548 | ||||||||||||
Total cost of revenues
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38,280 | 42,675 | 114,733 | 124,929 | ||||||||||||
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Research and development
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28,517 | 28,063 | 82,621 | 83,230 | ||||||||||||
Selling and marketing
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64,501 | 62,091 | 189,415 | 185,385 | ||||||||||||
General and administrative
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18,412 | 17,297 | 51,288 | 47,120 | ||||||||||||
Total operating expenses
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149,710 | 150,126 | 438,057 | 440,664 | ||||||||||||
Operating income
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182,646 | 158,184 | 536,064 | 449,564 | ||||||||||||
Financial income, net
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10,452 | 9,638 | 30,688 | 30,998 | ||||||||||||
Income before taxes on income
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193,098 | 167,822 | 566,752 | 480,562 | ||||||||||||
Taxes on income
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40,691 | 33,748 | 120,738 | 96,407 | ||||||||||||
Net income
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$ | 152,407 | $ | 134,074 | $ | 446,014 | $ | 384,155 | ||||||||
Earnings per share (basic)
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$ | 0.75 | $ | 0.65 | $ | 2.17 | $ | 1.85 | ||||||||
Number of shares used in computing earnings per share (basic)
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203,928 | 206,311 | 205,170 | 207,199 | ||||||||||||
Earnings per share (diluted)
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$ | 0.73 | $ | 0.63 | $ | 2.12 | $ | 1.79 | ||||||||
Number of shares used in computing earnings per share (diluted)
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208,717 | 213,412 | 210,831 | 214,505 |
softwarebladesTM |
©2012 Check Point Software Technologies Ltd. All rights reserved.
Classification: [Unrestricted] For Everyone| P. 5
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Three Months Ended
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Nine Months Ended
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September 30,
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September 30,
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2012
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2011
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2012
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2011
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(unaudited)
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(unaudited)
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(unaudited)
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(unaudited)
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GAAP operating income
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$ | 182,646 | $ | 158,184 | $ | 536,064 | $ | 449,564 | ||||||||
Stock-based compensation (1)
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12,029 | 11,495 | 33,734 | 29,640 | ||||||||||||
Amortization of intangible assets (2)
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922 | 11,013 | 6,107 | 33,076 | ||||||||||||
Non-GAAP operating income
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$ | 195,597 | $ | 180,692 | $ | 575,905 | $ | 512,280 | ||||||||
GAAP net income
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$ | 152,407 | $ | 134,074 | $ | 446,014 | $ | 384,155 | ||||||||
Stock-based compensation (1)
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12,029 | 11,495 | 33,734 | 29,640 | ||||||||||||
Amortization of intangible assets (2)
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922 | 11,013 | 6,107 | 33,076 | ||||||||||||
Gain on sale of marketable securities previously impaired(3)
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- | - | - | (2,017 | ) | |||||||||||
Taxes on the above items (4)
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(1,250 | ) | (3,689 | ) | (3,013 | ) | (9,378 | ) | ||||||||
Non-GAAP net income
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$ | 164,108 | $ | 152,893 | $ | 482,842 | $ | 435,476 | ||||||||
GAAP Earnings per share (diluted)
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$ | 0.73 | $ | 0.63 | $ | 2.12 | $ | 1.79 | ||||||||
Stock-based compensation (1)
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0.06 | 0.05 | 0.16 | 0.14 | ||||||||||||
Amortization of intangible assets (2)
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0.01 | 0.05 | 0.03 | 0.15 | ||||||||||||
Gain on sale of marketable securities previously impaired(3)
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- | - | - | (0.01 | ) | |||||||||||
Taxes on the above items (4)
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(0.01 | ) | (0.01 | ) | (0.02 | ) | (0.04 | ) | ||||||||
Non-GAAP Earnings per share (diluted)
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$ | 0.79 | $ | 0.72 | $ | 2.29 | $ | 2.03 | ||||||||
Number of shares used in computing Non-GAAP earnings per share (diluted)
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208,717 | 213,412 | 210,831 | 214,505 | ||||||||||||
(1) Stock-based compensation:
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Cost of products and licenses
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$ | 12 | $ | 11 | $ | 50 | $ | 41 | ||||||||
Cost of software updates, maintenance and subscription
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234 | 235 | 539 | 680 | ||||||||||||
Research and development
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1,951 | 2,164 | 6,504 | 5,619 | ||||||||||||
Selling and marketing
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2,445 | 2,328 | 7,272 | 5,909 | ||||||||||||
General and administrative
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7,387 | 6,757 | 19,369 | 17,391 | ||||||||||||
$ | 12,029 | $ | 11,495 | $ | 33,734 | $ | 29,640 | |||||||||
(2) Amortization of intangible assets:
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Amortization of technology-cost of revenues
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294 | 7,849 | 3,688 | 23,548 | ||||||||||||
Selling and marketing
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628 | 3,164 | 2,419 | 9,528 | ||||||||||||
922 | 11,013 | 6,107 | 33,076 | |||||||||||||
(3) Gain on Sale of marketable securities previously impaired
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- | - | - | (2,017 | ) | |||||||||||
(4) Taxes on the above items
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(1,250 | ) | (3,689 | ) | (3,013 | ) | (9,378 | ) | ||||||||
Total, net
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$ | 11,701 | $ | 18,819 | $ | 36,828 | $ | 51,321 |
softwarebladesTM |
©2012 Check Point Software Technologies Ltd. All rights reserved.
Classification: [Unrestricted] For Everyone| P. 6
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September 30,
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December 31,
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2012
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2011
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(unaudited)
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(audited)
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Current assets:
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Cash and cash equivalents
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$ | 330,391 | $ | 493,546 | ||||
Marketable securities and short-term deposits
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1,119,878 | 865,994 | ||||||
Trade receivables, net
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240,911 | 357,418 | ||||||
Prepaid expenses and other current assets
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50,266 | 53,045 | ||||||
Total current assets
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1,741,446 | 1,770,003 | ||||||
Long-term assets:
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Marketable securities
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1,796,515 | 1,519,865 | ||||||
Property and equipment, net
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35,505 | 36,639 | ||||||
Severance pay fund
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5,818 | 6,052 | ||||||
Deferred tax asset, net
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22,146 | 25,296 | ||||||
Other intangible assets, net
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20,132 | 26,239 | ||||||
Goodwill
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727,875 | 727,875 | ||||||
Other assets
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18,428 | 16,094 | ||||||
Total long-term assets
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2,626,419 | 2,358,060 | ||||||
Total assets
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$ | 4,367,865 | $ | 4,128,063 |
Current liabilities:
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Deferred revenues
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$ | 449,614 | $ | 490,655 | ||||
Trade payables and other accrued liabilities
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301,300 | 271,815 | ||||||
Total current liabilities
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750,914 | 762,470 | ||||||
Long-term deferred revenues
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56,330 | 61,523 | ||||||
Income tax accrual
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241,050 | 219,469 | ||||||
Deferred tax liability, net
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- | 1,274 | ||||||
Accrued severance pay
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9,987 | 10,236 | ||||||
307,367 | 292,502 | |||||||
Total liabilities
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1,058,281 | 1,054,972 | ||||||
Shareholders’ equity:
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Share capital
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774 | 774 | ||||||
Additional paid-in capital
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674,195 | 630,508 | ||||||
Treasury shares at cost
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(1,802,819 | ) | (1,543,886 | ) | ||||
Accumulated other comprehensive income
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18,375 | 12,650 | ||||||
Retained earnings
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4,419,059 | 3,973,045 | ||||||
Total shareholders’ equity
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3,309,584 | 3,073,091 | ||||||
Total liabilities and shareholders’ equity
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4,367,865 | $ | 4,128,063 | |||||
Total cash and cash equivalents, marketable securities and short-term deposits
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$ | 3,246,784 | $ | 2,879,405 |
softwarebladesTM |
©2012 Check Point Software Technologies Ltd. All rights reserved.
Classification: [Unrestricted] For Everyone| P. 7
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Three Months Ended
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Nine Months Ended
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September 30,
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September 30,
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2012
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2011
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2012
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2011
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(unaudited)
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(unaudited)
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(unaudited)
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(unaudited)
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Cash flow from operating activities:
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Net income
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$ | 152,407 | $ | 134,074 | $ | 446,014 | $ | 384,155 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities:
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Depreciation of property and equipment
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2,228 | 1,808 | 6,010 | 5,360 | ||||||||||||
Amortization of intangible assets
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922 | 11,013 | 6,107 | 33,076 | ||||||||||||
Stock-based compensation
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12,029 | 11,495 | 33,734 | 29,640 | ||||||||||||
Realized gain on marketable securities
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(396 | ) | - | (493 | ) | (2,481 | ) | |||||||||
Decrease (increase) in trade and other receivables, net
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9,359 | (1,971 | ) | 115,219 | 77,936 | |||||||||||
Increase in deferred revenues, trade payables and other accrued liabilities
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6,200 | 5,323 | 3,961 | 27,087 | ||||||||||||
Excess tax benefit from stock-based compensation
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(1,854 | ) | (2,660 | ) | (1,619 | ) | (4,748 | ) | ||||||||
Deferred income taxes, net
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(448 | ) | (4,549 | ) | 4,374 | (8,378 | ) | |||||||||
Net cash provided by operating activities
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180,447 | 154,533 | 613,307 | 541,647 | ||||||||||||
Cash flow from investing activities:
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Cash paid in conjunction with acquisitions, net of acquired cash
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- | (55 | ) | - | (6,556 | ) | ||||||||||
Investment in property and equipment
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(1,175 | ) | (1,989 | ) | (4,876 | ) | (5,473 | ) | ||||||||
Net cash used in investing activities
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(1,175 | ) | (2,044 | ) | (4,876 | ) | (12,029 | ) | ||||||||
Cash flow from financing activities:
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Proceeds from issuance of shares upon exercise of options
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13,837 | 11,827 | 55,461 | 51,378 | ||||||||||||
Purchase of treasury shares
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(156,059 | ) | (75,000 | ) | (306,058 | ) | (225,000 | ) | ||||||||
Excess tax benefit from stock-based compensation
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1,854 | 2,660 | 1,619 | 4,748 | ||||||||||||
Net cash used in financing activities
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(140,368 | ) | (60,513 | ) | (248,978 | ) | (168,874 | ) | ||||||||
Unrealized gain (loss) on marketable securities, net
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6,068 | (5,314 | ) | 7,926 | 780 | |||||||||||
Increase in cash and cash equivalents, marketable securities and
short term deposits
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44,972 | 86,662 | 367,379 | 361,524 | ||||||||||||
Cash and cash equivalents, marketable securities and
short term deposits at the beginning of the period
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3,201,812 | 2,689,808 | 2,879,405 | 2,414,946 | ||||||||||||
Cash and cash equivalents, marketable securities and
short term deposits at the end of the period
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$ | 3,246,784 | $ | 2,776,470 | $ | 3,246,784 | $ | 2,776,470 |
softwarebladesTM |
©2012 Check Point Software Technologies Ltd. All rights reserved.
Classification: [Unrestricted] For Everyone| P. 8
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CHECK POINT SOFTWARE TECHNOLOGIES LTD.
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October 17, 2012
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By:
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/s/ Tal Payne | |
Tal Payne | |||
Chief Financial Officer
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softwarebladesTM |
©2012 Check Point Software Technologies Ltd. All rights reserved.
Classification: [Unrestricted] For Everyone| P. 9
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