Check Point Software Technologies Reports 2020 Fourth Quarter and Full Year Financial Results

SAN CARLOS, Calif., Feb. 03, 2021 (GLOBE NEWSWIRE) — Check Point® Software Technologies Ltd. (NASDAQ: CHKP), today announced its financial results for the fourth quarter and full year ended December 31, 2020.
Fourth Quarter 2020        Total Revenues: $564 million, a 4 percent increase year over yearDeferred Revenues: $1,482 million, a 7 percent increase year over yearGAAP Operating Income: $251 million, representing 45 percent of revenuesNon-GAAP Operating Income: $285 million, representing 51 percent of revenuesGAAP EPS: $1.95, a 6 percent increase year over yearNon-GAAP EPS: $2.17, a 7 percent increase year over yearFull Year 2020Total Revenues: $2,065 million, a 4 percent increase year over yearGAAP EPS: $5.96, a 10 percent increase year over yearNon-GAAP EPS: $6.78, an 11 percent increase year over year
“We are pleased with our fourth quarter and full year 2020 financial results. Business in our fourth quarter grew across all focus areas including cloud, network and remote access security with subscriptions revenue growth of 10 percent and non-GAAP EPS growth of 11 percent year over year. This reflects the continued execution of our strategy and the importance of cyber security during these unprecedented times,” said Gil Shwed, Founder and CEO of Check Point Software Technologies. “The global pandemic drove the new normal, a hybrid work environment and accelerated digital transformation that created security challenges across all types of organizations. The Infinity security platform enables the prevention of Gen V cyber-attacks across all major attack vectors. Delivering cyber security is now more critical than ever and I would like to thank our customers, partners and employees for making that happen.”Financial Highlights for the Fourth Quarter of 2020
Total Revenues: $564 million compared to $544 million in the fourth quarter of 2019, a 4 percent increase year over year.GAAP Operating Income: $251 million compared to $249 million in the fourth quarter of 2019, representing 45 percent and 46 percent of revenues in the fourth quarter of 2020 and 2019, respectively.Non-GAAP Operating Income: $285 million compared to $280 million in the fourth quarter of 2019, representing 51 percent of revenues in the fourth quarter of 2020 and 2019.GAAP Taxes on Income (tax benefit): $5.2 million compared to $3.1 million in the fourth quarter of 2019.GAAP Net Income & Earnings per Diluted share: GAAP net income was $271 million compared to $272 million in the fourth quarter of 2019. GAAP earnings per diluted share were $1.95 compared to $1.84 in the fourth quarter of 2019, a 6 percent increase year over year.Non-GAAP Net Income & Earnings per Diluted share: Non-GAAP net income was $301 million compared to $299 million in the fourth quarter of 2019. Non-GAAP earnings per diluted share were $2.17 compared to $2.02 in the fourth quarter of 2019, a 7 percent increase year over year.Deferred Revenues: As of December 31, 2020, deferred revenues were $1,482 million compared to $1,387 million as of December 31, 2019, a 7 percent increase year over year.Cash Balances, Marketable Securities & Short Term Deposits: $4,000 million as of December 31, 2020, compared to $3,949 million as of December 31, 2019.Cash Flow: Cash flow from operations of $293 million compared to $246 million in the fourth quarter of 2019. The fourth quarter of 2020 includes $26 million of income related to our currency hedging transactions compared to $2 million in the fourth quarter of 2019. In addition, in the fourth quarter of 2019 our cash flow from operations included $12 million of acquisition-related costs.Share Repurchase Program: During the fourth quarter of 2020, the company repurchased approximately 2.7 million shares at a total cost of approximately $323 million.Financial Highlights for the Year Ended December 31, 2020
Total Revenues: $2,065 million compared to $1,995 million in 2019, a 4 percent increase year over year.GAAP Operating Income: $904 million compared to $882 million in 2019, representing 44 percent of revenues in 2020 and 2019.Non-GAAP Operating Income: $1,035 million compared to $1,003 million in 2019, representing 50 percent of revenues in 2020 and 2019.GAAP Taxes on Income: $124 million compared to $137 million in 2019.GAAP Net Income & Earnings per Diluted Share: GAAP net income was $847 million compared to $826 million in 2019. GAAP earnings per diluted share were $5.96 compared to $5.43 in 2019, a 10 percent increase year over year.Non-GAAP Net Income & Earnings per Diluted Share: Non-GAAP net income was $963 million compared to $933 million in 2019. Non-GAAP earnings per diluted share were $6.78 compared to $6.13 in 2019, an 11 percent increase year over year.Cash Flow: Cash flow from operations of $1,152 million compared to $1,102 million in 2019.Share Repurchase Program: During 2020, the company repurchased approximately 11.4 million shares at a total cost of approximately $1,298 million.For information regarding the non-GAAP financial measures discussed in this release, as well as a reconciliation of such non-GAAP financial measures to the most directly comparable GAAP financial measures, please see “Use of Non-GAAP Financial Information” and “Reconciliation of GAAP to Non-GAAP Financial Information.”Business Highlights:Products LaunchesIn April, we announced the transformation of our appliance security gateways into the new Quantum Security Gateways^TM delivering premier security. The new line of 15 security gateway models extends the Infinity architecture from the branch office to the data center. All Quantum models out-of-the box deliver our highest level of threat prevention using the Sandblast Zero-day Protection, providing more than 60 security and threat prevention services. Since its launch and through 2020, we witnessed a high transition rate of over 90% to the new Quantum model.