“I am very pleased that we were able to deliver all-time record quarterly results this quarter. We exceeded the high-end of our projections in both revenues and earnings per share,” said Gil Shwed, chairman and chief executive officer at Check Point. “This growth was a result of strong network security product sales across all regions with particular strength coming from the America’s and Asia Pacific.”
Financial Highlights for the Third Quarter of 2010
Total Revenues: $273.2 million, an increase of 17 %, compared to $233.6 million in the third quarter of 2009.
GAAP Operating Income: $135.1 million, an increase of 28 %, compared to $105.5 million in the third quarter of 2009. GAAP operating margin was 49 %, compared to 45 % in the third quarter of 2009.
Non-GAAP Operating Income: $156.9 million, an increase of 23 %, compared to $127.5 million in the third quarter of 2009. Non-GAAP operating margin was 57 %, compared to 55 % in the third quarter of 2009.
GAAP Net Income and Earnings per Diluted Share: GAAP net income was $114.5 million, an increase of 25 %, compared to $91.5 million in the third quarter of 2009. GAAP earnings per diluted share were $0.54, an increase of 26 %, compared to $0.43 in the third quarter of 2009.
Non-GAAP Net Income and Earnings per Diluted Share: Non-GAAP net income was $132.6 million, an increase of 21 %, compared to $109.5 million in the third quarter of 2009. Non-GAAP earnings per diluted share were $0.63, an increase of 21 %, compared to $0.52 in the third quarter of 2009.
Deferred Revenues: As of September 30, 2010, we had deferred revenues of $396.3 million, an increase of 10 %, compared to $360.1 million as of September 30, 2009.
Cash Flow: Cash flow from operations was $144.6 million, an increase of 15 %, compared to $126.1 million in the third quarter of 2009.
Share Repurchase Program: During the third quarter of 2010, we repurchased 1.44 million shares at a total cost of $50 million.
Cash Balances and Marketable Securities: $2,256 million as of September 30, 2010, an increase of $520 million, compared to $1,736 million as of September 30, 2009.
Recent Business Highlights Include:
* Introduction of Check Point Application Control Software Blade – Enables Web 2.0 security through a unique combination of technology, user awareness and broad application control from the world’s largest application classification database, the Check Point AppWiki, with over 50,000 Web 2.0 widgets and more than 4,500 Internet applications. * Security Gateway Virtual Edition (VE) Software Blade – Provides businesses with one-click security protection for private and public clouds with VMsafe integration. * Series 80 Appliance – Designed for remote and branch offices, the new appliance delivers stronger security at 1.5 gigabit per second for under $2,500. * Multi-Domain Management Software Blades – Provides virtual security management to businesses of all sizes and simplifies management by segmenting security into virtual domains based on location, business unit or security functions. * New Check Point R71 Training and Certification Programs – Interactive programs to teach security professionals how to deploy, maintain and optimize the latest Software Blade Architecture protections.
Mr. Shwed concluded. “It is great to see the success of our strategy reflected in our record all-time-high quarterly results. The Software Blade Architecture combined, with a unique focus on our customers’ security needs, continues to drive Check Point’s industry leadership. ”