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 July, 2007
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 | Allison Wagda |
| Check Point Software Technologies | Check Point Software Technologies |
| 650.628.2040 | 650.628.2070 |
| ir@us.checkpoint.com | press@us.checkpoint.com |
CHECK POINT SOFTWARE REPORTS FINANCIAL RESULTS FOR THE
SECOND QUARTER OF 2007
Company Exceeded Its High-End Revenue Projections with a 27 Percent Growth
Year over Year; Non-GAAP EPS Grew 20 Percent Year over Year
REDWOOD CITY, Calif., – July 24, 2007 – Check Point® Software Technologies Ltd. (NASDAQ: CHKP), the worldwide leader in securing the Internet, today announced financial results for the second quarter ended June 30, 2007.
Financial Highlights for the Second Quarter of 2007
| — | Revenues: $176.2 million, an increase of 27 percent, compared to $138.9 million in the second quarter of 2006. In the second quarter of 2007, network security contributed $155.8 million to revenues, an increase of 12 percent, compared to the second quarter of 2006. Data security contributed $20.4 million to revenues, an increase of 17 percent, compared to the first quarter of 2007. |
| — | Earnings Per Diluted Share – GAAP: $0.31, an increase of 13 percent, compared to $0.27 in the second quarter of 2006. GAAP earnings per share in the second quarter of 2007 included charges that were not included in the second quarter of 2006, in the amount of $0.03 per share, for equity based compensation expenses and acquisition related charges (net), in connection with the acquisitions of Protect Data and NFR Security. |
| — | Earnings Per Diluted Share – Non GAAP1: $0.38, an increase of 20 percent, compared to $0.32 in the second quarter of 2006. Non-GAAP EPS exclude equity based compensation expenses and acquisition related charges2. |
| — | Net Income – GAAP: $69.5 million, an increase of 6 percent, compared to $65.7 million in the second quarter of 2006. GAAP net income in the second quarter of 2007 included charges that were not included in the second quarter of 2006, in the amount of $7.5 million, for equity based compensation expenses and acquisition related charges (net), in connection with the acquisitions of Protect Data and NFR Security. |
|
1 See
“Use of Non-GAAP Financial Information” and “Reconciliation
between GAAP and Non-GAAP Statement of Income” below for more information
regarding Check Point’s use of Non-GAAP financial measures. 2 “Equity based compensation expenses” refer to the amortized fair value of all equity based awards granted to employees. “Acquisition related charges” refer to the impact of the amortization of intangible assets and other acquisition related expenses. |
| — | Net Income – Non GAAP: $85.7 million, an increase of 13 percent, compared to $76.0 million in the second quarter of 2006. Non-GAAP net income excludes equity based compensation expenses and acquisition-related charges. |
| — | Deferred Revenues: $236.2 million, an increase of $59.7 million, or 34 percent, over deferred revenues as of June 30, 2006. |
| — | Share Repurchase Program: During the second quarter of 2007, Check Point purchased 2.1 million shares at a total cost of approximately $50.0 million. |
| — | Operating Cash Flow: Cash flow from operations was $81.5 million, compared to $88.6 million in the second quarter of 2006. |
“During the second quarter of 2007, we continued to generate strong financial results which exceeded our projections,” said Gil Shwed, chairman and chief executive officer of Check Point Software. “These results were driven by growth in our core enterprise network security business complemented by our data security business.”
During the second quarter of 2007, we introduced products aligned with our PURE focus on IT security and strengthened our unified security architecture. Recent key business highlights and product introductions included the following:
| — | CoreXL Acceleration Technology in VPN-1 Power Achieved Performance Breakthrough – Leveraging off-the-shelf multi-core processors, VPN-1 Power with CoreXL is the first network security gateway that enables security administrators to gain data center level performance without compromising on deep security inspection. Key performance statistics include 12 Gbps firewall inspection and 5.3 Gbps intrusion prevention inspection. |
| — | IPS-1 Integrated into Check Point’s Unified Security Architecture – Check Point has successfully integrated IPS-1 into its key security event correlation and management components. Recently acquired dedicated intrusion prevention solution delivers accurate, real-time mitigation against known and unknown attacks. |
| — | Data and Endpoint Security for Vista – Pointsec PC, Check Point’s full-disk encryption solution for laptop and desktop PCs, is now available to protect enterprise computers running the Windows Vista™ operating system. Check Point also introduced its consumer ZoneAlarm Internet Security Suite for Vista. |
| — | Successful Check Point Experience Event for Partners and Customers in the Americas – Check Point held a major business and networking event to educate partners and customers on Check Point solutions. Participants benefited from valuable technical and business discussions and product demonstrations to improve technical know-how and expertise. |
Partial List of Awards in the Second Quarter of 2007
| — | Gil Shwed Inducted to the CRN Industry Hall of Fame – CRN honored Shwed for his work as an early firewall pioneer and for recently diversifying Check Point into data security. The CRN Industry Hall Of Fame honors outstanding individuals who create breakthrough technology and propel the high-tech industry and channel to new heights. |
| — | Amnon Bar-Lev Named as a CRN Channel Chief – Check Point’s vice president of field operations was recognized for creating, promoting and executing effective channel partner programs and strategies. This is the fourth award Check Point has received from CRN in the last three years for its channel and partner programs. |
| — | Check Point Won Information Security Magazine and SearchSecurity.com 2007 Readers’Choice Award in UTM Category – A gold award was given to VPN-1 UTM for the depth of security it provides under a single platform that can be centrally controlled and updated in real time. |
Mr. Shwed continued, “The results in the first half of 2007 validate our strategy to be the leading pure-play IT security company, offering a Unified Security Architecture across the network-security and the data-security layers. We look forward to the second half of 2007 as we continue to focus on executing our strategy.”
Conference Call and
Webcast Information
Check Point will host a conference
call with the investment community on July 24, 2007 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 August 7, 2007 at the company’s website http://www.checkpoint.com/ir or by telephone at (973) 341-3080, pass code 8987537.
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 and earnings per share, which are adjustments from
results based on GAAP to exclude non-cash equity based compensation charges in accordance
with SFAS 123R and acquisition related charges. 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 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. 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 Statement
Certain statements in this press
release are forward-looking statements. Forward-looking statements include statements
regarding Check Point’s belief that its second quarter results validate its strategy
to be the leading pure-play company in IT security offering a Unified Security
Architecture across the network-security and data-security layers, and Check Point’s
plans to continue to focus on executing its strategy in the second half of 2007. Because
these statements pertain to future events they are subject to various risks and
uncertainties, and 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: whether customers purchase and adopt Check Point
solutions for their IT security architecture, the mix of sales of new products and
long-term subscriptions; economic and political uncertainties; the impact of political
changes and weaknesses in various regions of the world, including the commencement or
escalation of hostilities or acts of terrorism; the 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; timely availability and customer
acceptance of Check Point’s new and existing products; and other factors and risks
discussed in Check Point’s Annual Report on Form 20-F for the year ended December 31,
2006, which is on file with the Securities and Exchange Commission. Check Point assumes no
obligation to update information concerning its expectations.
About Check Point
Software Technologies Ltd.
Check Point Software Technologies
Ltd. (www.checkpoint.com) is a leader in securing the Internet. The company is a
market leader in the worldwide enterprise firewall, personal firewall, data security and
VPN markets. Check Point’s PURE focus is on IT security with its extensive
portfolio of network security, data security and security management solutions. Through
its NGX platform, Check Point delivers a unified security architecture for a broad range
of security solutions to protect business communications and resources for corporate
networks and applications, remote employees, branch offices and partner extranets. The
company also offers market leading data security solutions through the Pointsec product
line, protecting and encrypting sensitive corporate information stored on PCs and other
mobile computing devices. Check Point’s award-winning ZoneAlarm Internet Security
Suite and additional consumer security solutions protect millions of consumer PCs from
hackers, spyware and data theft. Extending the power of the Check Point solution is its
Open Platform for Security (OPSEC), the industry’s framework and alliance for
integration and interoperability with “best-of-breed” solutions from hundreds of
leading companies. 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.
©2003–2007 Check Point Software Technologies Ltd. All rights reserved. Check Point, AlertAdvisor, Application Intelligence, Check Point Express, Check Point Express CI, the Check Point logo, Check Point Pointsec Protector, ClusterXL, Confidence Indexing, ConnectControl, Connectra, Connectra Accelerator Card, Cooperative Enforcement, Cooperative Security Alliance, CoSa, DefenseNet, Dynamic Shielding Architecture, Eventia, Eventia Analyzer, Eventia Reporter, Eventia Suite, FireWall-1, FireWall-1 GX, FireWall-1 SecureServer, FloodGate-1, Hacker ID, Hybrid Detection Engine, IMsecure, INSPECT, INSPECT XL, Integrity, Integrity Clientless Security, Integrity SecureClient, InterSpect, IPS-1, IQ Engine, MailSafe, NG, NGX, Open Security Extension, OPSEC, OSFirewall, Pointsec, Pointsec Mobile, Policy Lifecycle Management, Provider-1, Safe@Home, Safe@Office, SecureClient, SecureClient Mobile, SecureKnowledge, SecurePlatform, SecurePlatform Pro, SecuRemote, SecureServer, SecureUpdate, SecureXL, SecureXL Turbocard, Sentivist, SiteManager-1, SmartCenter, SmartCenter Express, SmartCenter Power, SmartCenter Pro, SmartCenter UTM, SmartConsole, SmartDashboard, SmartDefense, SmartDefense Advisor, Smarter Security, SmartLSM, SmartMap, SmartPortal, SmartUpdate, SmartView, SmartView Monitor, SmartView Reporter, SmartView Status, SmartViewTracker, SofaWare, SSL Network Extender, Stateful Clustering, TrueVector, Turbocard, UAM, UserAuthority, User-to-Address Mapping, UTM-1, VPN-1, VPN-1 Accelerator Card, VPN-1 Edge, VPN-1 Express, VPN-1 Express CI, VPN-1 Power, VPN-1 Power VSX, VPN-1 Pro, VPN-1 SecureClient, VPN-1 SecuRemote, VPN-1 SecureServer, VPN-1 UTM, VPN-1 UTM Edge, VPN-1 VSX, Web Intelligence, ZoneAlarm, ZoneAlarm Anti-Spyware, ZoneAlarm Antivirus, ZoneAlarm Internet Security Suite, ZoneAlarm Pro, ZoneAlarm Secure Wireless Router, Zone Labs, and the Zone Labs logo are trademarks or registered trademarks of Check Point Software Technologies Ltd. or its affiliates. ZoneAlarm is a Check Point Software Technologies, Inc. Company. All other product names mentioned herein are trademarks or registered trademarks of their respective owners. The products described in this document are protected by U.S. Patent No. 5,606,668, 5,835,726, 5,987,611, 6,496,935, 6,873,988, 6,850,943, and 7,165,076 and may be protected by other U.S. Patents, foreign patents, or pending applications.
CHECK POINT SOFTWARE TECHNOLOGIES LTD.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share amounts)
| Three Months Ended |
Six Months Ended |
|||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June 30, |
June 30, |
|||||||||||||
| 2007 |
2006 |
2007 |
2006 | |||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||
| Revenues: | ||||||||||||||
| Products and licenses | $ | 73,318 | $ | 58,492 | $ | 139,366 | $ | 113,311 | ||||||
| Software subscriptions | 69,987 | 63,550 | 137,563 | 126,077 | ||||||||||
| Total product, license and software subscriptions | ||||||||||||||
| revenues | 143,305 | 122,042 | 276,929 | 239,388 | ||||||||||
| Services | 32,887 | 16,894 | 63,232 | 33,140 | ||||||||||
| Total revenues | 176,192 | 138,936 | 340,161 | 272,528 | ||||||||||
| Operating expenses: | ||||||||||||||
| Cost of revenues | 19,800 | 8,888 | 36,760 | 16,955 | ||||||||||
| Research and development | 20,775 | 15,911 | 39,643 | 32,194 | ||||||||||
| Selling and marketing | 55,176 | 39,716 | 107,338 | 76,079 | ||||||||||
| General and administrative | 11,621 | 10,393 | 25,721 | 22,554 | ||||||||||
| Acquired in process research and | ||||||||||||||
| development | - | - | 17,000 | - | ||||||||||
| Total operating expenses | 107,372 | 74,908 | 226,462 | 147,782 | ||||||||||
| Operating income | 68,820 | 64,028 | 113,699 | 124,746 | ||||||||||
| Financial income, net | 11,645 | 16,218 | 24,713 | 31,726 | ||||||||||
| Income before income taxes | 80,465 | 80,246 | 138,412 | 156,472 | ||||||||||
| Taxes on income | 11,004 | 14,530 | 22,003 | 29,123 | ||||||||||
| Net income | $ | 69,461 | $ | 65,716 | $ | 116,409 | $ | 127,349 | ||||||
| Earnings per share (basic) | $ | 0.31 | $ | 0.27 | $ | 0.52 | $ | 0.53 | ||||||
| Number of shares used in computing earnings per | ||||||||||||||
| share (basic) | 223,291 | 240,982 | 222,989 | 242,349 | ||||||||||
| Earnings per share (diluted) | $ | 0.31 | $ | 0.27 | $ | 0.52 | $ | 0.52 | ||||||
| Number of shares used in computing earnings per | ||||||||||||||
| share (diluted) | 226,151 | 240,951 | 225,806 | 243,325 | ||||||||||
CHECK POINT SOFTWARE TECHNOLOGIES LTD.
RECONCILIATION OF SUPPLEMENTAL FINANCIAL INFORMATION
(In thousands, except per share amounts)
| Three Months Ended |
Six Months Ended |
|||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June 30, |
June 30, |
|||||||||||||
| 2007 |
2006 |
2007 |
2006 | |||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||
| GAAP operating income | $ | 68,820 | $ | 64,028 | $ | 113,699 | $ | 124,746 | ||||||
| Stock-based compensation (1) | 8,588 | 9,315 | 16,926 | 20,915 | ||||||||||
| Amortization of intangible assets and acquisition | ||||||||||||||
| related expenses (2) | 10,338 | 1,505 | 19,301 | 3,937 | ||||||||||
| Acquired in process research and development | - | - | 17,000 | - | ||||||||||
| Non-GAAP operating income | $ | 87,746 | $ | 74,848 | $ | 166,926 | $ | 149,598 | ||||||
| GAAP net income | $ | 69,461 | $ | 65,716 | $ | 116,409 | $ | 127,349 | ||||||
| Stock-based compensation (1) | 8,588 | 9,315 | 16,926 | 20,915 | ||||||||||
| Amortization of intangible assets and acquisition | ||||||||||||||
| related expenses (2) | 10,338 | 1,505 | 19,301 | 3,937 | ||||||||||
| Acquired in process research and development | - | - | 17,000 | - | ||||||||||
| Taxes on stock-based compensation and amortization | ||||||||||||||
| of intangible assets and acquisition related | ||||||||||||||
| expenses (3) | (2,698 | ) | (542 | ) | (5,344 | ) | (1,084 | ) | ||||||
| Non-GAAP net income | $ | 85,689 | $ | 75,994 | $ | 164,292 | $ | 151,117 | ||||||
| GAAP Earnings per share (diluted) | $ | 0.31 | $ | 0.27 | $ | 0.52 | $ | 0.52 | ||||||
| Stock-based compensation (1) | 0.03 | 0.04 | 0.07 | 0.08 | ||||||||||
| Amortization of intangible assets and acquisition | ||||||||||||||
| related expenses (2) | 0.05 | 0.01 | 0.09 | 0.02 | ||||||||||
| Acquired in process research and development | 0.00 | 0.00 | 0.07 | 0.00 | ||||||||||
| Taxes on stock-based compensation and amortization | ||||||||||||||
| of intangible assets and acquisition related | ||||||||||||||
| expenses (3) | (0.01 | ) | 0.00 | (0.02 | ) | 0.00 | ||||||||
| Non-GAAP Earnings per share (diluted) | $ | 0.38 | $ | 0.32 | $ | 0.73 | $ | 0.62 | ||||||
| Number of shares used in computing Non-GAAP | ||||||||||||||
| earnings per share (diluted) | 226,151 | 240,951 | 225,806 | 243,325 | ||||||||||
| (1) Stock-based compensation: | ||||||||||||||
| Cost of revenues | $ | 206 | $ | 59 | $ | 334 | $ | 169 | ||||||
| Research and development | 1,060 | 2,968 | 2,070 | 6,517 | ||||||||||
| Selling and marketing | 2,627 | 2,197 | 4,348 | 4,816 | ||||||||||
| General and administrative | 4,695 | 4,091 | 10,174 | 9,413 | ||||||||||
| Total before taxes | $ | 8,588 | $ | 9,315 | $ | 16,926 | $ | 20,915 | ||||||
| (2) Amortization of intangible assets and | ||||||||||||||
| acquisition related expenses: | ||||||||||||||
| Cost of revenues | $ | 7,154 | $ | 1,354 | $ | 13,416 | $ | 2,708 | ||||||
| Selling and marketing | 3,184 | 151 | 5,885 | 302 | ||||||||||
| General and administrative | - | - | - | 927 | ||||||||||
| Total before taxes | 10,338 | 1,505 | 19,301 | 3,937 | ||||||||||
| (3) Taxes on stock-based compensation and | ||||||||||||||
| amortization of intangible assets and acquisition | ||||||||||||||
| related expenses | (2,698 | ) | (542 | ) | (5,344 | ) | (1,084 | ) | ||||||
| Total , net | $ | 16,228 | $ | 10,278 | $ | 30,883 | $ | 23,768 | ||||||
CHECK POINT SOFTWARE TECHNOLOGIES LTD.
CONDENSED CONSOLIDATED BALANCE SHEET DATA
(In thousands)
ASSETS
| June 30, 2007 |
December 31, 2006 | |||||||
|---|---|---|---|---|---|---|---|---|
| (unaudited) | (unaudited) | |||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 262,164 | $ | 519,443 | ||||
| Marketable securities | 452,886 | 571,621 | ||||||
| Trade receivables, net | 132,393 | 141,881 | ||||||
| Other receivables and prepaid expenses | 23,519 | 22,408 | ||||||
| Total current assets | 870,962 | 1,255,353 | ||||||
| Long-term assets: | ||||||||
| Marketable securities | 435,126 | 558,874 | ||||||
| Property, plant and equipment, net | 55,803 | 47,192 | ||||||
| Intangible assets, net | 180,809 | 23,117 | ||||||
| Goodwill | 659,316 | 182,115 | ||||||
| Deferred income taxes, net | 4,598 | 6,977 | ||||||
| Other assets | 697 | 534 | ||||||
| Total long-term assets | 1,336,349 | 818,809 | ||||||
| Total assets | $ | 2,207,311 | $ | 2,074,162 | ||||
LIABILITIES AND
SHAREHOLDERS' EQUITY
| Current liabilities: | ||||||||
| Deferred revenues | $ | 236,228 | $ | 204,149 | ||||
| Trade payables and other accrued liabilities | 169,158 | 153,900 | ||||||
| Total current liabilities | 405,386 | 358,049 | ||||||
| Deferred tax liability, net | 38,662 | - | ||||||
| Accrued severance pay, net | 5,224 | 4,580 | ||||||
| Minority | 447 | - | ||||||
| Total liabilities | 449,719 | 362,629 | ||||||
| Shareholders' equity: | ||||||||
| Share capital | 774 | 774 | ||||||
| Additional paid-in capital | 440,333 | 422,381 | ||||||
| Treasury shares at cost | (815,937 | ) | (728,909 | ) | ||||
| Accumulated other comprehensive loss | (3,944 | ) | (6,293 | ) | ||||
| Retained earnings | 2,136,366 | 2,023,580 | ||||||
| Total shareholders' equity | 1,757,592 | 1,711,533 | ||||||
| Total liabilities and shareholders' equity | $ | 2,207,311 | $ | 2,074,162 | ||||
| Total cash and cash equivalents, deposits and marketable | ||||||||
| securities | 1,150,176 | 1,649,938 | ||||||
CHECK POINT SOFTWARE TECHNOLOGIES LTD.
SELECTED CONSOLIDATED CASH FLOW DATA
(In thousands)
| Three Months Ended |
Six Months Ended |
|||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June 30, |
June 30, |
|||||||||||||
| 2007 |
2006 |
2007 |
2006 | |||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||
| Cash flow from operating activities: | ||||||||||||||
| Net income | $ | 69,461 | $ | 65,716 | $ | 116,409 | $ | 127,349 | ||||||
| Adjustments to reconcile net income to net cash | ||||||||||||||
| provided by operating activities: | ||||||||||||||
| Depreciation and amortization of property, plant and equipment | 1,707 | 1,334 | 2,944 | 2,745 | ||||||||||
| Decrease in trade and other receivables, net | 2,063 | 13,416 | 40,631 | 42,884 | ||||||||||
| Increase (decrease) in deferred revenues, trade payables | ||||||||||||||
| and other accrued liabilities | (7,557 | ) | (2,923 | ) | (13,343 | ) | 6,133 | |||||||
| Acquisition of in process research and development | - | - | 17,000 | - | ||||||||||
| Amortization of intangible assets | 10,338 | 1,505 | 19,301 | 3,010 | ||||||||||
| Stock-based compensation | 8,588 | 9,315 | 16,926 | 20,915 | ||||||||||
| Deferred income taxes, net | (3,136 | ) | 221 | (8,396 | ) | 2,153 | ||||||||
| Net cash provided by operating activities | 81,464 | 88,584 | 191,472 | 205,189 | ||||||||||
| Cash flow from investing activities: | ||||||||||||||
| Cash paid in conjunction with the acquisition of Protect Data, net | (260 | ) | - | (594,294 | ) | - | ||||||||
| Investment in property, plant and equipment | (5,564 | ) | (38,837 | ) | (9,986 | ) | (40,010 | ) | ||||||
| Net cash used in investing activities | (5,824 | ) | (38,837 | ) | (604,280 | ) | (40,010 | ) | ||||||
| Cash flow from financing activities: | ||||||||||||||
| Proceeds from issuance of shares upon exercise of options | 7,418 | 23,040 | 14,935 | 40,448 | ||||||||||
| Purchase of treasury shares | (50,000 | ) | (138,433 | ) | (105,627 | ) | (202,358 | ) | ||||||
| Tax benefit related to exercise of stock options | - | 2,200 | - | 3,450 | ||||||||||
| Net cash used in financing activities | (42,582 | ) | (113,193 | ) | (90,692 | ) | (158,460 | ) | ||||||
| Unrealized gain (loss) on marketable securities, net | (4,388 | ) | (1,414 | ) | 3,738 | (5,995 | ) | |||||||
| Increase (decrease) in cash and cash equivalents, deposits | ||||||||||||||
| and marketable securities | 28,670 | (64,860 | ) | (499,762 | ) | 724 | ||||||||
| Cash and cash equivalents, deposits and marketable securities | ||||||||||||||
| at the beginning of the period | 1,121,506 | 1,790,927 | 1,649,938 | 1,725,343 | ||||||||||
| Cash and cash equivalents, deposits and marketable securities | ||||||||||||||
| at the end of the period | 1,150,176 | 1,726,067 | 1,150,176 | 1,726,067 | ||||||||||
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.
July 24, 2007 |
CHECK POINT SOFTWARE TECHNOLOGIES LTD. By: /s/ Eyal Desheh —————————————— Eyal Desheh Executive Vice President & Chief Financial Officer |