Check Point Software Technologies Reports Fourth Quarter and

Check Point Software Technologies Reports Fourth Quarter and Full
Year 2012 Financial Results 
SAN CARLOS, CA -- (Marketwire) -- 01/23/13 --  Check Point(R)
Software Technologies Ltd. (NASDAQ: CHKP) 
Full Year 2012: 


 
--  Total Revenues: $1,342.7 million, representing an 8 percent increase
    year over year
--  Non-GAAP Operating Income: $798.9 million, representing 59 percent of
    revenues versus 58 percent year over year
--  Non-GAAP EPS: $3.19, representing an 11 percent increase year over
    year
--  Cash Flow From Operations: $815.8 million, representing a 14 percent
    increase year over year
--  Share Repurchase Program: $466.2 million, representing a 55 percent
    increase year over year

  
Fourth Quarter 2012: 


 
--  Total Revenues: $368.6 million, representing a 3 percent increase year
    over year
--  Non-GAAP Operating Income: $222.9 million, representing 60 percent of
    revenues, same as last year
--  Non-GAAP EPS: $0.91, representing an 8 percent increase year over year
--  Cash Flow From Operations: $202.4 million, representing a 17 percent
    increase year over year

  
Check Point(R) Software Technologies Ltd. (NASDAQ: CHKP), the worldwide
leader in securing the Internet, today announced financial results
for the fourth quarter and full-year ending December 31, 2012.  
"Throughout 2012, customers continued to adopt the Software Blades
Architecture and further consolidated their security infrastructure
with our new appliance portfolio. Revenues from software blades had a
significant contribution to our growth with over a 50% increase this
year. Overall financial results were good with non-GAAP EPS growth of
11 percent for the year. Cash flow from operations reached $816
million dollars representing 14 percent growth for the year. In the
fourth quarter, cash flow from operations was $202 million dollars
representing 17 percent growth," said Gil Shwed, founder, chairman
and chief executive officer at Check Point Software Technologies. 
Financial Highlights for the Fourth Quarter of 2012 


 
--  Total Revenues: $368.6 million, an increase of 3 percent, compared to
    $356.8 million in the fourth quarter of 2011.
--  GAAP Operating Income: $210.5 million, an increase of 9 percent,
    compared to $192.6 million in the fourth quarter of 2011. GAAP
    operating margin was 57 percent, compared to 54 percent in the fourth
    quarter of 2011.
--  Non-GAAP Operating Income: $222.9 million, an increase of 4 percent,
    compared to $213.7 million in the fourth quarter of 2011. Non-GAAP
    operating margin was 60 percent, same as in the fourth quarter of
    2011.
--  GAAP Net Income and Earnings per Diluted Share: GAAP net income was
    $174.0 million, an increase of 9 percent, compared to $159.8 million
    in the fourth quarter of 2011. GAAP earnings per diluted share were
    $0.85, an increase of 13 percent, compared to $0.75 in the fourth
    quarter of 2011.
--  Non-GAAP Net Income and Earnings per Diluted Share: Non-GAAP net
    income was $185.1 million, an increase of 4 percent, compared to
    $178.1 million in the fourth quarter of 2011. Non-GAAP earnings per
    diluted share were $0.91, an increase of 8 percent, compared to $0.84
    in the fourth quarter of 2011.
--  Deferred Revenues: As of December 31, 2012, Check Point had deferred
    revenues of $589.7 million, an increase of 7 percent, compared to
    $552.2 million as of December 31, 2011.
--  Cash Flow: Cash flow from operations was $202.4 million, an increase
    of 17 percent, compared to $173.2 million in the fourth quarter of
    2011.
--  Share Repurchase Program: During the fourth quarter of 2012, the
    company repurchased 3.6 million shares at a total cost of $160.1
    million.
--  Cash Balances and Marketable Securities: $3,295.4 million as of
    December 31, 2012, an increase of $416.0 million, compared to $2,879.4
    million as of December 31, 2011.

  
Financial Highlights for the Year Ended December 31, 2012 


 
--  Total Revenues: $1,342.7 million, an increase of 8 percent, compared
    to $1,247.0 million in 2011.
--  GAAP Operating Income: $746.5 million, an increase of 16 percent,
    compared to $642.2 in 2011. GAAP operating margin was 56 percent,
    compared to 51 percent in 2011.
--  Non-GAAP Operating Income: $798.9 million, an increase of 10 percent,
    compared to $725.9 million in 2011. Non-GAAP operating margin was 59
    percent, compared to 58 percent in 2011.
--  GAAP Net Income and Earnings per Diluted Share: GAAP net income was
    $620.0 million, an increase of 14 percent, compared to $544.0 million
    in 2011. GAAP earnings per diluted share were $2.96, an increase of 17
    percent, compared to $2.54 in 2011.
--  Non-GAAP Net Income and Earnings per Diluted Share: Non-GAAP net
    income was $667.9 million, an increase of 9 percent, compared to
    $613.6 million in 2011. Non-GAAP earnings per diluted share were
    $3.19, an increase of 11 percent, compared to $2.87 in 2011.
--  Cash Flow: Cash flow from operations was $815.8 million, an increase
    of 14 percent, compared to $714.9 million in 2011.
--  Share Repurchase Program: The Company repurchased 9.5 million shares
    at a total cost of $466.2 million during 2012.

  
For information regarding the non-GAAP financial measures discussed in
this release, please see "Use of Non-GAAP Financial Information" and
"Reconciliation of GAAP to Non-GAAP Financial Information." 
2012 Business Highlights
 Over the course of 2012, Check Point
introduced new and innovative products focused on fighting cyber
threats and making enterprises more secure including:  


 
--  Check Point ThreatCloud(TM) - The first collaborative network to
    fight cybercrime. ThreatCloud gathers attack data from thousands of
    gateways and sensors around the world and distributes the intelligence
    to participating security gateways. In the fourth quarter, the company
    continued to expand the ThreatCloud offering with the introduction of
    new managed security services.
--  Anti-Bot Software Blade - The Anti-bot software blades address one of
    the key cyber threats used by the most sophisticated attacks. Bots are
    malicious software agents that hide inside personal computers awaiting
    instructions from their remote operators. They are utilized to steal
    data and attack other computers as well as other malicious activities.
    The anti-bot software blades detect the bot presence on the network
    using a multi-dimensional approach and block their activity.
--  New Appliance Product Line Transition - Over 90 percent of appliances
    sold during the fourth quarter were from the new appliance product
    line. Our 2012 Appliances models are optimized for Check Point's
    Software Blade Architecture(TM) and deliver approximately three
    times the performance of previous generations.
--  New Secure OS (GAiA) - GAiA is our new secure operating system that
    unifies the operations of the company's new and existing appliances,
    integrating the functions and features of multiple product lines.
--  Software Version R74.40 - New software version for the company's core
    network security products. This version includes more than 100 new
    features, including the Anti-Bot Software Blade and an updated version
    of the company's Anti-Virus Software Blades powered by Check Point
    ThreatCloud.
--  Check Point Virtual Systems- New solution for private cloud
    environments and data centers that enables the consolidation of up to
    250 security gateways on a single hardware platform.
--  DDoS Protector(TM) Appliances - Check Point expanded into a new and
    critical security market segment. These new solutions combat a wide
    range of Distributed Denial of Service (DDoS) attacks and are
    integrated with the Check Point Security Management environment.
--  Security Acceleration Module- The Security Acceleration Module with
    advanced SecurityCore(TM) technology enables customers in
    high-performance and low latency environments, such as financial
    trading floors, to significantly boost network performance by
    accelerating key security operations. Customers are able to achieve
    110 Gbps of firewall throughput and sub-five micro second (5 us)
    latency - enabling the industry's highest-performing two rack-unit
    firewall.

  
Industry Accolades & New Research:
 Check Point continued to receive
industry recognition and published a whitepaper on a new attack,
including:  


 
--  Top Position in Worldwide Combined Firewall and UTM Appliance Market -
    Check Point is positioned as the number one vendor in worldwide
    combined Firewall and UTM appliance revenue for Q2 2012 according to
    the IDC Worldwide Q2 2012 Security Appliance Tracker.
--  Leader in Gartner's Magic Quadrant for Mobile Data Protection - Check
    Point is recognized as a leader for its ability to encrypt data and
    secure mobile endpoints.
--  2012 Frost & Sullivan Asia Pacific ICT Award - Named "Network
    Security Vendor of the Year." This is the third time that Check Point
    has received this prestigious distinction.
--  MIS Asia Top 100, Singapore - Global Top 75 IT Vendors.
--  IT Pro Editor's Choice 2012 Hong Kong - Check Point DDoS Protector
    Appliance and Check Point Threat Prevention Gateway
--  SMB World Awards 2012, Hong Kong - Check Point DDoS Protector
    Appliance
--  New Eurograbber Attack - Check Point along with Versafe, uncovered a
    highly sophisticated attack, called Eurograbber, which was used to
    steal millions from corporate and private banking customers across
    Europe. The two companies published "A Case Study of Eurograbber: How
    36 million euros was stolen via malware."

  
"During the year, we expanded the power of the Software Blades
Architecture by introducing the Check Point ThreatCloud, the
industry's first collaborative network to fight cyber threats
globally with thousands of gateways worldwide that contribute attack
information into ThreatCloud. In 2013, we will continue to innovate
and extend our leadership, focusing on threat prevention and mobile
security," said Gil Shwed, founder, chairman and chief executive
officer at Check Point Software Technologies. 
First Quarter Investor Conference Participation Schedule: 


 
--  Stifel Nicolaus Technology & Telecommunications Conference
    
    February 6, 2013 - San Francisco, CA
--  Goldman Sachs Technology & Internet Conference
     February 13, 2013
    - San Francisco, CA
--  Morgan Stanley Global Technology, Media and Telecommunications
    Conference
     February 25, 2013 - San Francisco, CA
--  Raymond James 33rdAnnual Institutional Investor Conference
     March 4,
    2013 - Orlando, FL
--  UBS Technology Conference
     March 13, 2013 - London, UK

  
Members of Check Point's management team will present at these
conferences and discuss the latest company strategies and
initiatives. Check Point's conference presentations are expected to
be available via webcast on the company's web site. To view these
presentations and access the most updated information please visit
the company's web site at www.checkpoint.com/ir. The schedule is
subject to change.  
Conference Call and Webcast Information
 Check Point will host a
conference call with the investment community on January 23, 2013 at
8:30 AM ET/5:30 AM PST. To listen to the live webcast, please visit
the website at: www.checkpoint.com/ir. A replay of the conference
call will be available through January 30, 2013 on the company's
website or by telephone at +1.201.612.7415, replay ID number 407539. 
About Check Point Software Technologies Ltd. 
 Check Point Software
Technologies Ltd. (www.checkpoint.com), the worldwide leader in
securing the Internet, provides customers with uncompromised
protection against all types of threats, reduces security complexity
and lowers total cost of ownership. Check Point first pioneered the
industry with FireWall-1 and its patented stateful inspection
technology. Today, Check Point continues to develop new innovations
based on the Software Blade Architecture, providing customers with
flexible and simple solutions that can be fully customized to meet
the exact security needs of any organization. Check Point is the only
vendor to go beyond technology and define security as a business
process. Check Point 3D Security uniquely combines policy, people and
enforcement for greater protection of information assets and helps
organizations implement a blueprint for security that aligns with
business needs. Customers include tens of thousands of organizations
of all sizes, including all Fortune and Global 100 companies. Check
Point's award-winning ZoneAlarm solutions protect millions of
consumers from hackers, spyware and identity theft.  
Copyright2013 Check Point Software Technologies Ltd. All rights
reserved 
Legal Notice Regarding Forward-Looking Statements
 This press release
contains forward-looking statements within the meaning of Section 27A
of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Forward-looking statements generally relate to
future events or our future financial or operating performance.
Forward-looking statements in this press release include, but are not
limited to, statements related to our expectations that, in 2013, we
will continue the focus on threat prevention with further expansion
of our mobile security offerings and will continue to innovate and
lead the internet security industry. Our expectations and beliefs
regarding these matters may not materialize, and actual results in
future periods are subject to risks and uncertainties that could
cause actual results to differ materially from those projected. These
risks include our ability to continue to develop platform
capabilities and solutions; customer acceptance and purchase of our
existing solutions and new solutions; the market for IT security
continuing to develop; competition from other products and services;
and general market, political, economic and business conditions. The
forward-looking statements contained in this press release are also
subject to other risks and uncertainties, including those more fully
described in our filings with the Securities and Exchange Commission,
including our Annual Report on Form 20-F filed with the Securities
and Exchange Commission on April 9, 2012. The forward-looking
statements in this press release are based on information available
to Check Point as of the date hereof, and Check Point disclaims any
obligation to update any forward-looking statements, except as
required by law. 
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, operating income, operating margin and earnings per share,
which are adjustments from results based on GAAP to exclude non-cash
equity-based compensation charges, amortization of acquired
intangible assets, loss (gain) on sale of marketable securities
previously impaired, and the related tax affects. 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 ongoing core operations and prospects for the future.
Historically, Check Point has also publicly presented these
supplemental non-GAAP financial measures in order to assist the
investment community to see the Company "through the eyes of
management," and thereby enhance understanding of its operating
performance. 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. A reconciliation of the
non-GAAP financial measures discussed in this press release to the
most directly comparable GAAP financial measures is included with the
financial statements contained in this press release. 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. 


 
                                                                            
                                                                            
                                                                            
                   CHECK POINT SOFTWARE TECHNOLOGIES LTD.                   
                      CONSOLIDATED STATEMENT OF INCOME                      
                                                                            
                  (In thousands, except per share amounts)                  
                                                                            
                                Three Months Ended          Year Ended      
                             ----------------------- -----------------------
                                   December 31,            December 31,     
                             ----------------------- -----------------------
                                 2012        2011        2012        2011   
                             ----------- ----------- ----------- -----------
                             (unaudited) (unaudited) (unaudited)  (audited) 
Revenues:                                                                   
  Products and licenses      $   150,907 $   158,229 $   505,280 $   503,475
  Software updates,                                                         
   maintenance and                                                          
   subscription                  217,667     198,529     837,415     743,511
                             ----------- ----------- ----------- -----------
Total revenues                   368,574     356,758   1,342,695   1,246,986
                             ----------- ----------- ----------- -----------
                                                                            
Operating expenses:                                                         
  Cost of products and                                                      
   licenses                       26,216      25,648      87,097      81,043
  Cost of software updates,                                                 
   maintenance and                                                          
   subscription                   17,918      17,483      68,082      63,469
  Amortization of technology         294       7,623       3,982      31,171
                             ----------- ----------- ----------- -----------
Total cost of revenues            44,428      50,754     159,161     175,683
                                                                            
  Research and development        29,290      26,917     111,911     110,147
  Selling and marketing           65,930      68,414     255,345     253,800
  General and administrative      18,455      18,062      69,743      65,182
                             ----------- ----------- ----------- -----------
Total operating expenses         158,103     164,147     596,160     604,812
                             ----------- ----------- ----------- -----------
                                                                            
Operating income                 210,471     192,611     746,535     642,174
Financial income, net              9,644      10,041      40,332      41,040
                             ----------- ----------- ----------- -----------
Income before taxes on                                                      
 income                          220,115     202,652     786,867     683,214
Taxes on income                   46,129      42,840     166,867     139,248
                             ----------- ----------- ----------- -----------
Net income                   $   173,986 $   159,812 $   620,000 $   543,966
                             =========== =========== =========== ===========
                                                                            
Earnings per share (basic)   $      0.87 $      0.78 $      3.04 $      2.63
                             =========== =========== =========== ===========
Number of shares used in                                                    
 computing earnings per                                                     
 share (basic)                   200,230     206,083     203,918     206,917
                             =========== =========== =========== ===========
                                                                            
Earnings per share (diluted) $      0.85 $      0.75 $      2.96 $      2.54
                             =========== =========== =========== ===========
Number of shares used in                                                    
 computing earnings per                                                     
 share (diluted)                 204,258     212,807     209,170     213,922
                             =========== =========== =========== ===========
                                                                            
                                                                            
                   CHECK POINT SOFTWARE TECHNOLOGIES LTD.                   
          RECONCILIATION OF GAAP TO NON GAAP FINANCIAL INFORMATION          
                  (In thousands, except per share amounts)                  
                                                                            
                            Three Months Ended            Year Ended        
                         ------------------------  ------------------------ 
                               December 31,              December 31,       
                         ------------------------  ------------------------ 
                             2012         2011         2012         2011    
                         -----------  -----------  -----------  ----------- 
                         (unaudited)  (unaudited)  (unaudited)  (unaudited) 
                                                                            
GAAP operating income    $   210,471  $   192,611  $   746,535  $   642,174 
Stock-based compensation                                                    
 (1)                          11,552       10,195       45,287       39,835 
Amortization of                                                             
 intangible assets (2)           922       10,848        7,028       43,925 
                         -----------  -----------  -----------  ----------- 
Non-GAAP operating                                                          
 income                  $   222,945  $   213,654  $   798,850  $   725,934 
                         ===========  ===========  ===========  =========== 
                                                                            
GAAP net income          $   173,986  $   159,812  $   620,000  $   543,966 
Stock-based compensation                                                    
 (1)                          11,552       10,195       45,287       39,835 
Amortization of                                                             
 intangible assets (2)           922       10,848        7,028       43,925 
Gain on sale of                                                             
 marketable securities,                                                     
 previously impaired (3)           -            -            -       (2,017)
Taxes on the above items                                                    
 (4)                          (1,359)      (2,742)      (4,372)     (12,120)
                         -----------  -----------  -----------  ----------- 
Non-GAAP net income      $   185,101  $   178,113  $   667,943  $   613,589 
                         ===========  ===========  ===========  =========== 
                                                                            
GAAP Earnings per share                                                     
 (diluted)                      0.85  $      0.75  $      2.96  $      2.54 
Stock-based compensation                                                    
 (1)                            0.06         0.05         0.22         0.19 
Amortization of                                                             
 intangible assets (2)          0.01         0.05         0.03         0.21 
Gain on sale of                                                             
 marketable securities,                                                     
 previously impaired (3)           -            -            -        (0.01)
Taxes on the above items                                                    
 (4)                           (0.01)       (0.01)       (0.02)       (0.06)
                         -----------  -----------  -----------  ----------- 
Non-GAAP Earnings per                                                       
 share (diluted)         $      0.91  $      0.84  $      3.19  $      2.87 
                         ===========  ===========  ===========  =========== 
                                                                            
Number of shares used in                                                    
 computing Non-GAAP                                                         
 earnings per share                                                         
 (diluted)                   204,258      212,807      209,170      213,922 
                         ===========  ===========  ===========  =========== 
                                                                            
(1) Stock-based                                                             
 compensation:                                                              
  Cost of products and                                                      
   licenses              $        18  $        17  $        68  $        58 
  Cost of software                                                          
   updates, maintenance                                                     
   and subscriptions             222          229          761          909 
  Research and                                                              
   development                 2,090        1,852        8,594        7,471 
  Selling and marketing        2,404        1,979        9,677        7,888 
  General and                                                               
   administrative              6,818        6,118       26,187       23,509 
                         -----------  -----------  -----------  ----------- 
                              11,552       10,195       45,287       39,835 
                         -----------  -----------  -----------  ----------- 
                                                                            
(2) Amortization of                                                         
 intangible assets:                                                         
                                                                            
  Amortization of                                                           
   technology - cost of                                                     
   revenues                      294        7,623        3,982       31,171 
  Selling and marketing          628        3,225        3,046       12,754 
                         -----------  -----------  -----------  ----------- 
                                 922       10,848        7,028       43,925 
                         -----------  -----------  -----------  ----------- 
                                                                            
(3) Gain on sale of                                                         
 marketable securities,                                                     
 previously impaired               -            -            -       (2,017)
                         -----------  -----------  -----------  ----------- 
                                                                            
(4) Taxes on the above                                                      
 items                        (1,359)      (2,742)      (4,372)     (12,120)
                         -----------  -----------  -----------  ----------- 
                                                                            
Total, net               $    11,115  $    18,301  $    47,943  $    69,623 
                         ===========  ===========  ===========  =========== 

 
* Year ended December 31, 2011 include a non-cash gain of $ 2.0
million related to our marketable securities in accordance with ASC
320.  


 
                                                                            
                   CHECK POINT SOFTWARE TECHNOLOGIES LTD.                   
                 CONDENSED CONSOLIDATED BALANCE SHEET DATA                  
                                                                            
                               (In thousands)                               
                                                                            
                                   ASSETS                                   
                                                                            
                                                 December 31,  December 31, 
                                                     2012          2011     
                                                 ------------  ------------ 
                                                  (unaudited)    (audited)  
Current assets:                                                             
Cash and cash equivalents                        $    574,802  $    493,546 
Marketable securities and short-term deposits         928,535       865,994 
Trade receivables, net                                373,755       357,418 
Prepaid expenses and other current assets              47,827        53,045 
                                                 ------------  ------------ 
Total current assets                                1,924,919     1,770,003 
                                                 ------------  ------------ 
                                                                            
Long-term assets:                                                           
Marketable securities                               1,792,027     1,519,865 
Property and equipment, net                            36,973        36,639 
Severance pay fund                                      6,038         6,052 
Deferred tax asset, net                                25,553        25,296 
Other intangible assets, net                           19,211        26,239 
Goodwill                                              727,875       727,875 
Other assets                                           19,797        16,094 
                                                 ------------  ------------ 
Total long-term assets                              2,627,474     2,358,060 
                                                 ------------  ------------ 
                                                                            
Total assets                                     $  4,552,393  $  4,128,063 
                                                 ============  ============ 
                                                                            
                              LIABILITIES AND                               
                            SHAREHOLDERS' EQUITY                            
                                                                            
Current liabilities:                                                        
Deferred revenues                                $    524,627  $    490,655 
Trade payables and other accrued liabilities          346,568       271,815 
                                                 ------------  ------------ 
Total current liabilities                             871,195       762,470 
                                                 ------------  ------------ 
                                                                            
Long-term deferred revenues                            65,063        61,523 
Income tax accrual                                    259,547       219,469 
Deferred tax liability, net                                 -         1,274 
Accrued severance pay                                  10,279        10,236 
                                                 ------------  ------------ 
                                                      334,889       292,502 
                                                                            
                                                 ------------  ------------ 
Total liabilities                                   1,206,084     1,054,972 
                                                 ------------  ------------ 
                                                                            
Shareholders' equity:                                                       
Share capital                                             774           774 
Additional paid-in capital                            693,212       630,508 
Treasury shares at cost                            (1,955,328)   (1,543,886)
Accumulated other comprehensive income                 14,606        12,650 
Retained earnings                                   4,593,045     3,973,045 
                                                 ------------  ------------ 
Total shareholders' equity                          3,346,309     3,073,091 
                                                 ------------  ------------ 
Total liabilities and shareholders' equity       $  4,552,393  $  4,128,063 
                                                 ============  ============ 
Total cash and cash equivalents, marketable                                 
 securities and short-term deposits              $  3,295,364  $  2,879,405 
                                                 ============  ============ 
                                                                          
                   CHECK POINT SOFTWARE TECHNOLOGIES LTD.                 
                    SELECTED CONSOLIDATED CASH FLOW DATA                  
                                                                          
                               (In thousands)                             
                                                                          
                          Three Months Ended            Year Ended        
                       ------------------------  ------------------------ 
                             December 31,              December 31,       
                       ------------------------  ------------------------ 
                           2012         2011         2012         2011    
                       -----------  -----------  -----------  ----------- 
                       (unaudited)  (unaudited)  (unaudited)  (unaudited) 
  Cash flow from                                                          
   operating                                                              
   activities:                                                            
                                                                          
  Net income           $   173,986  $   159,812  $   620,000  $   543,966 
  Adjustments to                                                          
   reconcile net                                                          
   income to net cash                                                     
   provided by                                                            
   operating                                                              
   activities:                                                            
                                                                          
  Depreciation of                                                         
   property and                                                           
   equipment                 1,851        2,260        7,861        7,620 
  Amortization of                                                         
   intangible assets           922       10,848        7,028       43,925 
  Stock-based                                                             
   compensation             11,552       10,195       45,287       39,835 
  Increase in trade                                                       
   and other                                                              
   receivables, net       (126,966)    (156,527)     (11,746)     (78,590)
  Gain on sale of                                                         
   marketable                                                             
   securities,                                                            
   previously impaired           -            -            -       (2,017)
  Realized gain on                                                        
   marketable                                                             
   securities                 (943)        (208)      (1,436)        (672)
  Increase in deferred                                                    
   revenues, trade                                                        
   payables and other                                                     
   accrued liabilities     157,384      152,635      161,344      179,722 
  Excess tax benefit                                                      
   from stock-based                                                       
   compensation             (9,510)      (3,208)     (11,129)      (7,956)
  Deferred income                                                         
   taxes, net               (5,828)      (2,581)      (1,453)     (10,959)
                       -----------  -----------  -----------  ----------- 
  Net cash provided by                                                    
   operating                                                              
   activities              202,448      173,226      815,756      714,874 
                       -----------  -----------  -----------  ----------- 
                                                                          
  Cash flow from                                                          
   investing                                                              
   activities:                                                            
  Cash paid in                                                            
   conjunction with                                                       
   acquisitions, net                                                      
   of acquired cash              -      (15,060)           -      (21,616)
  Investment in                                                           
   property and                                                           
   equipment                (3,319)      (1,721)      (8,195)      (7,195)
                       -----------  -----------  -----------  ----------- 
  Net cash used in                                                        
   investing                                                              
   activities               (3,319)     (16,781)      (8,195)     (28,811)
                       -----------  -----------  -----------  ----------- 
                                                                          
  Cash flow from                                                          
   financing                                                              
   activities:                                                            
  Proceeds from                                                           
   issuance of shares                                                     
   upon exercise of                                                       
   options                   5,551       20,115       61,011       71,493 
  Purchase of treasury                                                    
   shares                 (160,106)     (75,000)    (466,164)    (300,000)
  Excess tax benefit                                                      
   from stock-based                                                       
   compensation              9,510        3,208       11,129        7,956 
                       -----------  -----------  -----------  ----------- 
  Net cash used in                                                        
   financing                                                              
   activities             (145,045)     (51,677)    (394,024)    (220,551)
                       -----------  -----------  -----------  ----------- 
                                                                          
  Unrealized gain                                                         
   (loss) on                                                              
   marketable                                                             
   securities, net          (5,504)      (1,833)       2,422       (1,053)
                       -----------  -----------  -----------  ----------- 
                                                                          
  Increase in cash and                                                    
   cash equivalents,                                                      
   marketable                                                             
   securities and                                                         
   short-term deposits      48,580      102,935      415,959      464,459 
                                                                          
  Cash and cash                                                           
   equivalents,                                                           
   marketable                                                             
   securities and                                                         
   short-term deposits                                                    
   at the beginning of                                                    
   the period            3,246,784    2,776,470    2,879,405    2,414,946 
                       -----------  -----------  -----------  ----------- 
  Cash and cash                                                           
   equivalents,                                                           
   marketable                                                             
   securities and                                                         
   short-term deposits                                                    
   at the end of the                                                      
   period              $ 3,295,364  $ 2,879,405  $ 3,295,364  $ 2,879,405 
                       ===========  ===========  ===========  =========== 

  
INVESTOR CONTACT: 
Kip E. Meintzer 
Check Point Software Technologies 
+1.650.628.2040 
ir@checkpoint.com  
MEDIA CONTACT:
James Rivas 
Check Point Software Technologies 
+1.650.628.2215 
press@checkpoint.com 
 
 
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