[ISN] Check Point Software Technologies Ltd. Reports Record First Quarter Results

From: mea culpa (jerichot_private)
Date: Fri Apr 24 1998 - 15:41:34 PDT

  • Next message: mea culpa: "[ISN] Laptop theft on rise"

    Forwarded From: "Spencer, Will" <wspencert_private>
    Check Point Software Technologies Ltd. Reports Record First Quarter
                                 (PR Newswire; 04/22/98)
         REDWOOD CITY, Calif., April 22 /PRNewswire/   Check Point Software
    Technologies Ltd. (Nasdaq: CHKPF) today announced record financial results
    for the first quarter ended March 31, 1998.  Revenues for the quarter were
    $30,857,000, compared to $13,684,000 for the same period in 1997, an
    increase of 125%.  Net income for the quarter was $15,526,000, or $0.41
    per share (on a fully-diluted basis), compared to net income of
    $6,473,000, or $0.17 per share in the same quarter in 1997, an increase of
    140% in net income and 141% in net income per share. 
        "We are very pleased with the overall results of the first quarter,"
    said Gil Shwed, president and CEO of Check Point Software Technologies
    Ltd.  "During the quarter, Check Point's leadership and momentum in
    enabling customers to implement secure, reliable and manageable business
    communications continued.  The company's overall installed base grew to
    over 45,000 units worldwide, and more than 6,500 networks are now using
    Check Point's VPN solution." 
        "Increasingly, we are seeing customers adopting Check Point's
    enterprise solutions, including our open platform approach to policy-based
    management based on the OPSEC framework, and our comprehensive, enterprise
    approach to VPNs.  These are becoming the primary drivers of Check Point's
    business," continued Shwed.  "In particular, the number of customers
    implementing remote access, Intranet and Extranet VPNs as part of their
    overall enterprise networking strategy continues to increase substantially
    each quarter."  A prime example is the Automotive Network eXchange (ANX)
    network, potentially the world's largest VPN, developed by and for vehicle
    manufacturers and suppliers, such as Chrysler, Ford and General Motors. 
    Recently, Check Point was selected as a supplier of VPN capabilities to
    the ANX. 
        In the first quarter, Check Point announced a strategic initiative to
    deliver the most comprehensive VPN solutions on the market, encompassing a
    full suite of security applications, traffic control (including bandwidth
    management and hardware acceleration) and enterprise management.  As part
    of this initiative, the company inked OEM deals with Entrust Technologies
    for Certificate Authorities/Public Key Infrastructure (CA/PKI) software
    and Chrysalis-ITS for hardware encryption acceleration. 
        Additional partnerships created in the first quarter include more than
    30 new members in the company's OPSEC(TM) (Open Platform for Secure
    Enterprise Connectivity) Alliance.  These new members include several
    managed service providers such as CompuServe Networks, GTE
    Internetworking, and MCI, and solutions vendors such as NextPoint
    Networks, SurfWatch, Tivoli Systems, Trend Micro, and WorldTalk. 
    Membership in the OPSEC Alliance now stands at more than 130 companies,
    with 57 OPSEC Certified and OPSEC Secured solutions shipping today. 
        Check Point continued the balanced diversification of its distribution
    channels across ISPs, OEMs, systems integrators, distributors and VARs. 
    Nine of the top ten ISPs in North America delivering managed service
    offerings to their business customers now offer Check Point for the
    enterprise security and VPN portion of their offering.  In the first
    quarter, the company added America On-Line's AOL Enterprise to the list of
    managed service providers selecting FireWall-1.  OEM revenues, including
    revenues from SunSoft, Inc., accounted for 19% of overall revenues in the
    fourth quarter, with SunSoft, Inc.  accounting for 13% of revenues. 
        Check Point also continued solid geographic diversification and opened
    a Middle East regional office in the first quarter, bringing the company's
    total offices to twenty-four in nine countries worldwide.  Fifty-one
    percent of all channel bookings in the first quarter came from outside the
    Americas, with Japan experiencing a seasonally-strong, record quarter. 
        The company continued its history of award-winning products with
    reviews lauding the products' security, reliability, flexibility, and
    manageability from trade publications including Computer Reseller News,
    Data Communications, Network Magazine, and Network Computing. 
        After the close of the quarter, the company acquired MetaInfo, Inc., a
    leading provider of IP address management solutions, which brings the
    company one step further in realizing its vision of secure, reliable, and
    manageable business communications over IP networks. 
        "We're very excited about the acquisition of MetaInfo, which not only
    brings important new products in the area of enterprise infrastructure
    management to Check Point, but also provides key enabling technology for
    our security and traffic management lines," said Deborah Triant, president
    and CEO of Check Point Software Technologies, Inc. "Central, policy-based
    management of all critical network functions, including security, traffic
    management, and the network infrastructure, is not only what the industry
    agrees is the 'holy grail,' it's what Check Point is delivering today." 
        About CHECK POINT Software Technologies Ltd.
        Check Point Software Technologies Ltd. is a leading provider of
    policy- based management solutions for active networks. Through its Secure
    Enterprise Connectivity strategy, the company is dedicated to enabling
    secure, reliable, and manageable business communications over IP networks.
    The company's products include the world's leading enterprise security and
    Virtual Private Network (VPN) suite, FireWall-1(R), and the industry's
    premier bandwidth management solution, FloodGate-1(TM).  MetaInfo, Inc., a
    wholly- owned subsidiary of Check Point, is a leader in network and IP
    address management software that simplifies the set-up, integration and
    administration of complex networks. The company has U.S. headquarters in
    Redwood City, California and international headquarters in Ramat-Gan,
    Israel. For product information, visit our web site at
        All of the statements contained in this press release that are not
    historical 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 the company's current
    expectations. Factors that could cause or contribute to such differences
    include, but are not limited to, the inclusion of network security
    functionality in hardware or system software, changes in the competitive
    landscape including new competitors and/or the impact of competitive
    pricing and products, dependence upon a limited number of key resellers,
    dependence upon a limited number of product lines, timely availability and
    customer acceptance of new and existing products, the failure to manage
    growth, the benefit to the company of recent and potential acquisitions,
    and other factors and risks discussed in the company's registration
    statement on Form F-1 dated May 6, 1997 and the other reports filed from
    time to time with the Securities and Exchange Commission including the
    company's annual report on Form 20-F. 
         NOTE:  Check Point, the Check Point logo, FireWall-1, FireWall-1
    SecuRemote, FireWall-First!, OPSEC, INSPECT, UAP, FloodGate-1 and IQ
    Engine are trademarks or registered trademarks of Check Point Software
    Technologies Ltd.  Meta IP and Meta DNS are trademarks of MetaInfo, Inc. 
    All other product names mentioned herein are trademarks of their
    respective owners. 
                          (In thousands, except per share amount)
                                               Three Months Ended
                                                    March 31
                                             1998                1997
         Revenues, net                      30,857              13,684
         Cost of revenues                    2,573               1,004
         Gross profit                       28,284              12,680
         Operating expenses:
         Research and development, net..      2,390               1,012
         Sales and marketing                 8,503               4,078
         General and administrative          2,238               1,453
         Total operating expenses           13,131               6,543
         Operating income                   15,153               6,137
         Financial income, net               1,184                 791
         Income before income taxes         16,337               6,928
         Income taxes                          811                 305
                                            15,526               6,623
         Equity losses related to affiliates     0                 150
         Net income                         15,526               6,473
         Earnings per share (Basic)           0.45                0.20
         Number of shares used in
         computing earnings
          per share (Basic)                 34,477              32,755
         Earnings per share (Fully diluted)   0.41                0.17
         Number of shares used in
         computing earnings per share
          (Fully diluted)                   38,030              37,138
         ..Net of participation by
          the chief scientist                  108                  75
                                       (In thousands)
                                          March 31,          December 31,
                                            1998                 1997
         Current Assets:
          Cash & cash equivalents           11,735               5,423
          Short term deposits               32,292              33,046
          Marketable securities             26,581              26,777
          Trade receivables, net            19,387              14,629
          Other receivables and
           prepaid expenses                  6,092               4,546
            Total current assets            96,087              84,421
          Long term investments             44,956              36,135
          Net property and equipment         4,219               2,797
          Severance pay fund                   536                 477
          Deferred Income Taxes                 46                  30
                                           145,844             123,860
                            LIABILITIES AND SHAREHOLDER'S EQUITY
         Total current liabilities          27,904              22,975
         Accrued Severance Pay                 821                 701
         Total shareholders' equity        117,119             100,184
                                           145,844             123,860
     SOURCE  Check Point Software Technologies Ltd.
     Web site:  http://www.checkpoint.com/
    Subscribe: mail majordomot_private with "subscribe isn".
    Today's ISN Sponsor: Dimensional Communications (www.dim.com)

    This archive was generated by hypermail 2b30 : Fri Apr 13 2001 - 12:51:36 PDT