Forwarded From: "Spencer, Will" <wspencer@DMWGroup.com>
Check Point Software Technologies Ltd. Reports Record First Quarter
Results
(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
http://www.checkpoint.com.
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.
CHECK POINT SOFTWARE TECHNOLOGIES LTD.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share amount)
Three Months Ended
March 31
Unaudited
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
CHECK POINT SOFTWARE TECHNOLOGIES LTD.
SELECTED CONSOLIDATED BALANCE SHEET DATA
(In thousands)
ASSETS
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/
-o-
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Received on Sat Apr 25 10:28:23 1998