softwarebladesTM |
©2013 Check Point Software Technologies Ltd. All rights reserved.
Classification: [Unrestricted] For Everyone| P. 1 |
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: $344.1 million, representing a 4 percent increase year over year
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Non-GAAP Operating Income: $ 200.8 million, representing 58 percent of revenues
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Non-GAAP EPS: $0.85, representing an 8 percent increase year over year
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Deferred Revenues: $566.8 million, representing a 12 percent increase year over year
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Total Revenue: $344.1 million, an increase of 4 percent, compared to $332.4 million in the third quarter of 2012.
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GAAP Operating Income: $186.5 million, an increase of 2 percent, compared to $182.6 million in the third quarter of 2012. GAAP operating margin was 54 percent, compared to 55 percent in the third quarter of 2012.
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Non-GAAP Operating Income: $200.8 million, an increase of 3 percent, compared to $195.6 million in the third quarter of 2012. Non-GAAP operating margin was 58 percent, compared to 59 percent in the third quarter of 2012.
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GAAP Net Income and Earnings per Diluted Share: GAAP net income was $159.7 million, an increase of 5 percent, compared to $152.4 million in the third quarter of 2012. GAAP earnings per diluted share were $0.80, an increase of 10 percent, compared to $0.73 in the third quarter of 2012.
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Non-GAAP Net Income and Earnings per Diluted Share: Non-GAAP net income was $168.9 million, an increase of 3 percent, compared to $164.1 million in the third quarter of 2012. Non-GAAP earnings per diluted share were $0.85, an increase of 8 percent, compared to $0.79, in the third quarter of 2012.
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Deferred Revenues: As of September 30, 2013, we had deferred revenues of $566.8 million, an increase of 12 percent, compared to $505.9 million as of September 30, 2012.
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Cash Flow: Cash flow from operations was $195.5 million, an increase of 8%, compared to $180.4 million in the third quarter of 2012.
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Share Repurchase Program: During the third quarter of 2013, we repurchased 2.3 million shares at a total cost of $128.3 million.
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Cash Balances, Marketable Securities and Short Term Deposits: $3,664.3 million as of September 30, 2013, an increase of $417.5 million, compared to $3,246.8 million as of September 30, 2012.
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softwarebladesTM |
©2013 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 12, 2013 – New York, NY
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RBC Global Technology Conference
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November 13, 2013 – New York, NY
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UBS Global Technology Conference
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November 20, 2013 – Sausalito, CA
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Credit Suisse Annual Technology Conference
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December 4, 2013 – Scottsdale, AZ
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Raymond James Supply Chain Conference
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December 9, 2013– New York, NY
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softwarebladesTM |
©2013 Check Point Software Technologies Ltd. All rights reserved.
Classification: [Unrestricted] For Everyone| P. 3 |
softwarebladesTM |
©2013 Check Point Software Technologies Ltd. All rights reserved.
Classification: [Unrestricted] For Everyone| P. 4 |
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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|||||||||||||||
2013
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2012
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2013
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2012
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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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$ | 121,081 | $ | 121,036 | $ | 348,373 | $ | 354,373 | ||||||||
Software updates, maintenance and subscription
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223,046 | 211,320 | 658,656 | 619,748 | ||||||||||||
Total revenues
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344,127 | 332,356 | 1,007,029 | 974,121 | ||||||||||||
Operating expenses:
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Cost of products and licenses
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21,727 | 20,606 | 61,492 | 60,881 | ||||||||||||
Cost of software updates, maintenance and subscription
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18,342 | 17,380 | 54,395 | 50,164 | ||||||||||||
Amortization of technology
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60 | 294 | 552 | 3,688 | ||||||||||||
Total cost of revenues
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40,129 | 38,280 | 116,439 | 114,733 | ||||||||||||
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Research and development
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30,034 | 28,517 | 88,717 | 82,621 | ||||||||||||
Selling and marketing
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68,783 | 64,501 | 201,093 | 189,415 | ||||||||||||
General and administrative
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18,690 | 18,412 | 53,995 | 51,288 | ||||||||||||
Total operating expenses
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157,636 | 149,710 | 460,244 | 438,057 | ||||||||||||
Operating income
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186,491 | 182,646 | 546,785 | 536,064 | ||||||||||||
Financial income, net
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9,098 | 10,452 | 25,548 | 30,688 | ||||||||||||
Income before taxes on income
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195,589 | 193,098 | 572,333 | 566,752 | ||||||||||||
Taxes on income
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35,888 | 40,691 | 113,664 | 120,738 | ||||||||||||
Net income
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$ | 159,701 | $ | 152,407 | $ | 458,669 | $ | 446,014 | ||||||||
Earnings per share (basic)
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$ | 0.82 | $ | 0.75 | $ | 2.33 | $ | 2.17 | ||||||||
Number of shares used in computing earnings per share (basic)
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194,931 | 203,928 | 196,570 | 205,170 | ||||||||||||
Earnings per share (diluted)
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$ | 0.80 | $ | 0.73 | $ | 2.29 | $ | 2.12 | ||||||||
Number of shares used in computing earnings per share (diluted)
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198,668 | 208,717 | 200,380 | 210,831 |
softwarebladesTM |
©2013 Check Point Software Technologies Ltd. All rights reserved.
Classification: [Unrestricted] For Everyone| P. 5 |
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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|||||||||||||||
2013
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2012
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2013
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2012
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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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$ | 186,491 | $ | 182,646 | $ | 546,785 | $ | 536,064 | ||||||||
Stock-based compensation (1)
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13,642 | 12,029 | 38,564 | 33,734 | ||||||||||||
Amortization of intangible assets (2)
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662 | 922 | 2,410 | 6,107 | ||||||||||||
Non-GAAP operating income
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$ | 200,795 | $ | 195,597 | $ | 587,759 | $ | 575,905 | ||||||||
GAAP net income
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$ | 159,701 | $ | 152,407 | $ | 458,669 | $ | 446,014 | ||||||||
Stock-based compensation (1)
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13,642 | 12,029 | 38,564 | 33,734 | ||||||||||||
Amortization of intangible assets (2)
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662 | 922 | 2,410 | 6,107 | ||||||||||||
Taxes on the above items (3)
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(5,115 | ) | (1,250 | ) | (6,426 | ) | (3,013 | ) | ||||||||
Non-GAAP net income
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$ | 168,890 | $ | 164,108 | $ | 493,217 | $ | 482,842 | ||||||||
GAAP Earnings per share (diluted)
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$ | 0.80 | $ | 0.73 | $ | 2.29 | $ | 2.12 | ||||||||
Stock-based compensation (1)
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0.07 | 0.06 | 0.19 | 0.16 | ||||||||||||
Amortization of intangible assets (2)
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- | 0.01 | 0.01 | 0.03 | ||||||||||||
Taxes on the above items (3)
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(0.02 | ) | (0.01 | ) | (0.03 | ) | (0.02 | ) | ||||||||
Non-GAAP Earnings per share (diluted)
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$ | 0.85 | $ | 0.79 | $ | 2.46 | $ | 2.29 | ||||||||
Number of shares used in computing Non-GAAP earnings per share (diluted)
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198,668 | 208,717 | 200,380 | 210,831 | ||||||||||||
(1) Stock-based compensation:
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Cost of products and licenses
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$ | 19 | $ | 12 | $ | 60 | $ | 50 | ||||||||
Cost of software updates, maintenance and subscription
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266 | 234 | 714 | 539 | ||||||||||||
Research and development
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2,108 | 1,951 | 6,897 | 6,504 | ||||||||||||
Selling and marketing
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3,201 | 2,445 | 8,773 | 7,272 | ||||||||||||
General and administrative
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8,048 | 7,387 | 22,120 | 19,369 | ||||||||||||
13,642 | 12,029 | 38,564 | 33,734 | |||||||||||||
(2) Amortization of intangible assets:
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Amortization of technology-cost of revenues
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60 | 294 | 552 | 3,688 | ||||||||||||
Selling and marketing
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602 | 628 | 1,858 | 2,419 | ||||||||||||
662 | 922 | 2,410 | 6,107 | |||||||||||||
(3) Taxes on the above items
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(5,115 | ) | (1,250 | ) | (6,426 | ) | (3,013 | ) | ||||||||
Total , net
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$ | 9,189 | $ | 11,701 | $ | 34,548 | $ | 36,828 |
softwarebladesTM |
©2013 Check Point Software Technologies Ltd. All rights reserved.
Classification: [Unrestricted] For Everyone| P. 6 |
September 30,
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December 31,
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|||||||
2013
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2012
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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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$ | 221,082 | $ | 574,802 | ||||
Marketable securities and short-term deposits
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1,039,364 | 928,535 | ||||||
Trade receivables, net
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256,665 | 373,755 | ||||||
Prepaid expenses and other current assets
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58,487 | 47,827 | ||||||
Total current assets
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1,575,598 | 1,924,919 | ||||||
Long-term assets:
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Marketable securities
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2,403,843 | 1,792,027 | ||||||
Property and equipment, net
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38,056 | 36,973 | ||||||
Severance pay fund
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6,193 | 6,038 | ||||||
Deferred tax asset, net
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30,192 | 25,553 | ||||||
Other intangible assets, net
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16,801 | 19,211 | ||||||
Goodwill
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727,875 | 727,875 | ||||||
Other assets
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19,620 | 19,797 | ||||||
Total long-term assets
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3,242,580 | 2,627,474 | ||||||
Total assets
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$ | 4,818,178 | $ | 4,552,393 |
Current liabilities:
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Deferred revenues
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$ | 498,588 | $ | 524,627 | ||||
Trade payables and other accrued liabilities
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442,887 | 346,568 | ||||||
Total current liabilities
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941,475 | 871,195 | ||||||
Long-term deferred revenues
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68,166 | 65,063 | ||||||
Income tax accrual
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303,558 | 259,547 | ||||||
Deferred tax liability, net
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4,764 | - | ||||||
Accrued severance pay
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10,712 | 10,279 | ||||||
387,200 | 334,889 | |||||||
Total liabilities
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1,328,675 | 1,206,084 | ||||||
Shareholders’ equity:
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Share capital
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774 | 774 | ||||||
Additional paid-in capital
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737,876 | 693,212 | ||||||
Treasury shares at cost
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(2,303,499 | ) | (1,955,328 | ) | ||||
Accumulated other comprehensive income
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2,636 | 14,606 | ||||||
Retained earnings
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5,051,716 | 4,593,045 | ||||||
Total shareholders’ equity
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3,489,503 | 3,346,309 | ||||||
Total liabilities and shareholders’ equity
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$ | 4,818,178 | $ | 4,552,393 | ||||
Total cash and cash equivalents, marketable securities and short-term deposits
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$ | 3,664,289 | $ | 3,295,364 |
softwarebladesTM |
©2013 Check Point Software Technologies Ltd. All rights reserved.
Classification: [Unrestricted] For Everyone| P. 7 |
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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2013
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2012
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2013
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2012
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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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$ | 159,701 | $ | 152,407 | $ | 458,669 | $ | 446,014 | ||||||||
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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2,205 | 2,228 | 6,302 | 6,010 | ||||||||||||
Amortization of intangible assets
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662 | 922 | 2,410 | 6,107 | ||||||||||||
Stock-based compensation
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13,642 | 12,029 | 38,564 | 33,734 | ||||||||||||
Realized gain on marketable securities
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(226 | ) | (396 | ) | (1,300 | ) | (493 | ) | ||||||||
Decrease in trade and other receivables, net
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7,595 | 9,359 | 112,846 | 115,219 | ||||||||||||
Increase in deferred revenues, trade payables and other accrued liabilities
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19,986 | 6,200 | 132,547 | 3,961 | ||||||||||||
Excess tax benefit from stock-based compensation
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(3,075 | ) | (1,854 | ) | (9,180 | ) | (1,619 | ) | ||||||||
Deferred income taxes, net
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(5,012 | ) | (448 | ) | (9,279 | ) | 4,374 | |||||||||
Net cash provided by operating activities
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195,478 | 180,447 | 731,579 | 613,307 | ||||||||||||
Cash flow from investing activities:
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Investment in property and equipment
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(2,759 | ) | (1,175 | ) | (7,385 | ) | (4,876 | ) | ||||||||
Net cash used in investing activities
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(2,759 | ) | (1,175 | ) | (7,385 | ) | (4,876 | ) | ||||||||
Cash flow from financing activities:
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Proceeds from issuance of shares upon exercise of options
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18,030 | 13,837 | 51,460 | 55,461 | ||||||||||||
Purchase of treasury shares
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(128,276 | ) | (156,059 | ) | (402,710 | ) | (306,058 | ) | ||||||||
Excess tax benefit from stock-based compensation
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3,075 | 1,854 | 9,180 | 1,619 | ||||||||||||
Net cash used in financing activities
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(107,171 | ) | (140,368 | ) | (342,070 | ) | (248,978 | ) | ||||||||
Unrealized gain (loss) on marketable securities, net
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8,089 | 6,068 | (13,199 | ) | 7,926 | |||||||||||
Increase in cash and cash equivalents, marketable securities and short term deposits
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93,637 | 44,972 | 368,925 | 367,379 | ||||||||||||
Cash and cash equivalents, marketable securities and short term deposits at the beginning of the period
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3,570,652 | 3,201,812 | 3,295,364 | 2,879,405 | ||||||||||||
Cash and cash equivalents, marketable securities and short term deposits at the end of the period
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$ | 3,664,289 | $ | 3,246,784 | $ | 3,664,289 | $ | 3,246,784 |
softwarebladesTM |
©2013 Check Point Software Technologies Ltd. All rights reserved.
Classification: [Unrestricted] For Everyone| P. 8 |
CHECK POINT SOFTWARE TECHNOLOGIES LTD.
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By:
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/s/ Tal Payne | |
Tal Payne | |||
Chief Financial Officer | |||
softwarebladesTM |
©2013 Check Point Software Technologies Ltd. All rights reserved.
Classification: [Unrestricted] For Everyone| P. 9 |