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Check Point Software Technologies

Company

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Check Point Software Technologies - solution provider in the field of information security support. The headquarters of the company is in Israel.
Revenue and Net Profit billions

Number of employees
2007 year
1900

Assets

+ Check Point Software Technologies

Activities

  • Firewall
  • Consolidation of offices in a single network (the protected VPN network)
  • IPS protection (protection of a segment)
  • Web Proxy, MS TMG\ISA Replacement
  • Traffic observation, prohibition of external mailers
  • Protection of mobile users and data
  • Data loss prevention
  • Protection of DPC
  • Protection against DDOS of the attacks
  • Protection of the PCS

Financial Performance

Financial year of the company comes to the end on December 31.

2019: Growth of revenue by 4% to $2 billion

In 2019 revenue of Check Point Software Technologies made almost $2 billion, having increased by 4% concerning the 2018th. This rise was promoted by subscriptions for solutions of information security and also sale of products for opposition to cyberthreats in cloud infrastructures.

Financial performance of Check Point
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We completed decade with revenue almost in $2 billion and more than $1 billion operating income. In 10 years we provided the new Security-as-a-Service model which provides the most advanced technologies in the field of cyber security. In 2019 income from subscriptions reached more than $600 million [$610.3 million against $542.3 million in 2018 are a comment of TAdviser] that was promoted by cloud, mobile and other dominant technologies of prevention of threats of zero day — the founder and the CEO of Check Point Gil Shwed says, summing up the results of 2019. — New decade we began with representation of Infinity NEXT, the most complex in the industry of the platform of cyber security with more than 60 technologies of protection which support more than 50 asset types, including operating systems, cloud workloads, networks of any type, IoT and mobile devices.
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In 2019 the software update and provision of services of support generated to the Israeli vendor about $873.7 million revenue that exceeds an indicator of year prescription in $848.6 million. Sales of products and licenses decreased from $525.6 million to $510.8 million.

The net profit of Check Point in 2019 was $825.7 million against $821.3 million profit the previous year. This growth happened partly at the expense of expense optimization.

In 2019 Check Point made share repurchase of 11.2 million actions for the amount about $1.28 billion. The company intends to continue capital repayment to investors in such format.[1]

Business in Russia

Main article: Check Point Russia and CIS

Deliveries of products of Check Point to Russia and the CIS began in 1997.

Affiliate program of Check Point

Main article: Check Point Affiliate program

History

2019

Purchase of software developer for protection of besserverny Protego technologies

At the beginning of December, 2019 Check Point announced Protego purchase. The financial component of the agreement of the company was decided to be left in a secret. Read more here.

Purchase of the developer for protection of the IoT-equipment against difficult cyber attacks of Cymplify

In the middle of November, 2019 Check Point Software Technologies announced Cymplify acquisition. How much this purchase cost to the decision maker for cyber security, is not reported. Read more here.

Microsoft gave Check Point on the market of big clouds

Sales of the solution Check Point for protection of cloud infrastructure, joint with Microsoft, became the most fast-growing and large direction of cloud business of the last. Itai Greenberg, the vice president for Check Point product management told about this TAdviser in February, 2019. By its estimates, sales with Microsoft generate about 30-40% of revenue of all cloud Check Point direction.

The model of joint sales means that Microsoft together with a cloud platform of Azure suggests the clients to purchase the solution Check Point CloudGuard IaaS intended for protection of cloud infrastructure. In turn, Check Point offers the Azure platform to the customers. Such cooperation provides mutual generation of leads (potential buyers), Greenberg notes.

According to the representative of Check Point, within this cooperation of Microsoft entered special incentive payments to the sales managers for sales of the solutions Check Point together with Azure.

The tool using which sales managers of Microsoft can note the supply requisition of the solution Check Point at Azure sale was created. After input of the request managers of Check Point for closing of the transaction are connected. After this Microsoft pays the commission to the seller for the closed transaction with Check Point, Itay Greenberg tells. Azure Marketplace where clients can test the solution Check Point also is involved in promotion.

Microsoft and Check Point cooperate many years, however began to develop partnership in the field of joint sales of cloud solutions of Check Point especially actively in 2017. According to Greenberg, then it was selected in Check Point as strategic.

In the 2018th cooperation received the continuation including participation in joint actions and customer training of cloud products of Microsoft on protection using the solutions Check Point. Microsoft began to speak as the general sponsor at the Check Point conferences.

Joint sales began with the solution Check Point vSEC for network protection of cloud and virtual infrastructures together with a subscription for the Microsoft Azure platform. Later it was renamed into CloudGuard IaaS and in 2018 is included in the updated line of the cloud products Check Point.

Greenberg explains interest in such cooperation from Microsoft with the fact that sale of services in protection of infrastructure can stimulate sales of cloud services.

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If clients see that the cloud platform is protected, they are ready to place in it more applications, - he argues.
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According to Itaya Greenberg, Check Point works on selling also other solutions for cloud protection together with Microsoft. For example, to propose the solution CloudGuard SaaS intended for protection of cloud applicaions together with Office 365.

Products for cloud protection of Check Point are sold also by other partners

One of the largest partners is also Amazon where CloudGuard IaaS is on sale with a cloud platform of Amazon Web Services, Greenberg says. Many clients use at the same time both Amazon Web Services, and Microsoft Azure.

Sales with Amazon Web Services with on volume catch up with sales with Microsoft, in many respects it is connected with the fact that in 2018 Check Point purchased the Israeli company Dome9, Greenberg explains. According to him, with purchase of Dome9 by Check Point company received a large number of clients on Amazon. Before the lead of Microsoft in cloud business of Check Point, according to him, was more.

At the same time in a case with Amazon the promotion model differs from partnership with Microsoft a little, Itay Greenberg says: solutions for protection move ahead, mainly, through a marketplace of Amazon, there are less joint sales.

The co-founder and CEO Dome9 Zohar Alon who after acquisition of the company held a position of the head of cloud products in Check Point, told TAdviser that in the long term several years of Check Point expects to bring a share of cloud business in a total turnover approximately to 25%. In 2018 it was at the level of 5-10%, brought data into the companies.

Gain of the cloud direction in the company in the last two years is in many respects connected with development of new architecture of cyber security of Infinity which Check Point provided in 2017. It represents the consolidated security system which protects data in network, a cloud and on mobile devices.

Purchase of software developer for protection of API and the ForceNock Security web applications

In the middle of January, 2019 the Check Point Software Technologies company announced ForceNock Security acquisition, but did not begin to open a financial component of the agreement. It is supposed that this transaction will allow the buyer to strengthen advanced opportunities of cyber defense on the basis of machine learning. Read more here.

2018

Growth of revenue by 3% to $1.92 billion

At the end of 2018 Check Point Software Technologies gained $1.92 billion that is 3% more in comparison with previous year.

The company earned $525.6 million against $559 million in 2017 from sale of products and licenses. Implementation of subscriptions to cybersecurity products increased from $480.4 million to $542.3 million. One more source of income are services of support and a software update: here in 2018 revenues of the Israeli vendor were measured by $848.6 million whereas in the 2017th earnings made $815.3 million. As notes Reuters agency, subscriptions generate Check Point Software about 70% of revenue.

Financial performance of Check Point Software

As the CEO of Check Point Software Gil Shwed reported, business of the company in the field of subscriptions to security systems continued growth thanks to cloud and mobile computing and also advanced solutions for prevention of cyberthreats.

According to forecasts of the company, its cloud business will grow in 2019 in many respects thanks to acquisition of a startup of Dome9 (the bargain is concluded in the 2018th) providing technologies for protection of cloud processes further. In 2018 sales of mobile products Dome9 were small, but growing, Gil Shwed emphasized.

According to it, expenses on cyber security in the world increased in 2018 by 11%, but a third of consumers still lose the data as the companies do not protect the systems from cyber attacks should in the way.

In 2018 the net profit of Check Point Software grew to $821 million from $803 million the previous year. The free cash flow from transactions grew during this time from $1.09 billion to $1.13 billion. At the end of 2018 the company redeemed about 10.3 million shares for the total amount of $1.1 billion and paid taxes on income in the amount of $158 million[2]

After the publication of financial results of the stock Check Point Software fell in price by 0.6% at the exchange in New York.

Partnership with BlackBerry

On September 13, 2018 BlackBerry Limited and Check Point Software Technologies Ltd companies announced the conclusion of global partnership within the ISV program (Independent Software Vendor) for independent software suppliers. The agreement provides collaborative planning of release on the market and sales of the solution Check Point SandBlast Mobile for protection against mobile threats and also the BlackBerry UEM and BlackBerry Dynamics systems.

For simplification of work with customers specialists of BlackBerry will undergo full training in the solution Check Point SandBlast Mobile further to sell a product and to provide uniform support and professional services.

The organizations implement solutions for mobility worldwide to increase efficiency and to implement projects in the field of digital transformation. At the same time questions of ensuring mobile security often remain indifferently in spite of the fact that the complexity and level of danger of cyberthreats grows. The recent research of Check Point showed that 94% of security experts doubt capability of their companies to prevent cracking of mobile devices of employees.

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The modern world of hyper communications requires ultra-security. Too often we hear about the enterprises which think of the strategy of mobility of security too late when it can be the weakest link. BlackBerry and Check Point create structure which rotates around cyber security, and with each company bringing different industry solutions, partnership is natural approach and excellent addition to our ISV ecosystem.
Mark Wilson, marketing director of BlackBerry
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The companies need to use consecutive comprehensive protection against threats on mobile devices that they did not become a door for malefactors. Thanks to the fact that Check Point and BlackBerry combine efforts for prevention of mobile cyber attacks we provide technologies of prevention of threats for mobile devices which are necessary for each business.
Jeremy Kai, vice president for the solutions Mobile Security Solutions of Check Point Software Technologies company
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The solution Check Point SandBlast Mobile works with the BlackBerry Dynamics platform and is integrated with the system of uniform control of the end devices BlackBerry Unified Endpoint Management (UEM). SandBlast Mobile 3.0 reflects mobile phishing attacks and also fixes receipt of harmful network traffic on devices and back for the purpose of security of information and employees. Users will be able to start downloaded on phones and tablets of the application in a virtual cloud environment for the analysis of their behavior. After such check of software it is marked as approved or harmful. Other SandBlast Mobile functions — protection of network from the device thanks to tracking and control of the entering and outbound network traffic, blocking of phishing attacks in all applications and browsers, a rupture of connections with harmful command servers.

2015

Growth of revenue by 9% to $1.63 billion

At the global level annual revenues of the company grew by 9% to $1.63 billion. Operating profit according to the GAAP standard was $840 million, having increased by 4.8% in comparison with $801 million in 2014. Operating profit not on GAAP was $927 million that is 7% more in comparison with $866 million for 2014. Earning per share not on GAAP was $4.17, having increased by 12% in comparison with $3.72 for 2014.

Lacoon Mobile purchase

The first half of 2015 was mentioned for Check Point by acquisition of a startup of Hyperwise which developed technology of prevention of threats at the level of the central processor (CP), and Lacoon Mobile Security companies whose technologies of advanced prevention of mobile threats added the solutions Check Point in the field of mobile protection. Transaction amount is not disclosed.

In August, 2015 Check Point provided Mobile Threat Prevention, platform for counteraction to mobile threats on devices iOS and Android. In the summer the company also expanded a product line in the field of protection of industrial management systems (ICS) and released the new hardware gateway of security 1200R.

Within cooperation increase with VMware Check Point company issued the solution vSEC integrated with the platform of network virtualization VMware NSX which allows customers to control security of all traffic of DPCs systematically.

In September, 2015 the company announced a new solution for prevention of threats of SandBlast, and in the first quarter 2016 released the version of SandBlast Agent for advanced protection of network and the user devices from threats of zero day.

The second quarter 2015

On July 27, 2015 Check Point Software Technologies Ltd. announced financial results for the second quarter 2015.

  • revenue: $395 million that is 9% more in comparison with the second quarter 2014;
  • operating income (non-GAAP): $221 million that is 7% more in comparison with the same period in 2014;
  • earning per share (non-GAAP): $0.99 that is 11% more in comparison with last year;
  • deferred revenues: $780 million that is 18% more in comparison with last year.

"We saved good financial results in the second quarter. Total sales from sale of products and licenses for program blades show the increase for 11% caused by high demand from the industry and business. Safety controls for data processing centers, to Super High-End and SMART-1 provided growth of proceeds from sales of products. Increase in income from licenses was caused by demand for our new and innovative technologies, including Threat Emulation and Threat Extraction intended for fight against advanced cyber attacks" — Gil Shwed, the founder and the chief executive officer of Check Point Software Technologies noted.

Main financial results of the second quarter 2015:

  • revenue: $395 million, in comparison with $363 million in the second quarter 2014.
  • operating income (GAAP): $199 million, in comparison with $190 million in the second quarter 2014.
  • operating income (non-GAAP): $221 million, in comparison with $207 million in the second quarter 2014.
  • net profit and profit on the diluted action (GAAP): net profit on GAAP was $163 million, in comparison with $160 million in the second quarter 2014. Profit on the diluted action (GAAP) was $0.88, in comparison with $0.83 in the second quarter 2014.
  • net profit and profit on the diluted action (non-GAAP): net profit not on GAAP of $183 million, in comparison with $172 million in the second quarter 2014. Profit on the diluted action (non-GAAP) of $0.99, in comparison with $0.89 in the second quarter 2014.
  • deferred revenues: for June 30, 2015 deferred revenues made $780 million, in comparison with $660 million for June 30, 2014.
  • cash flow: cash flow from primary activity grew to $193 million in comparison with $168 million in the second quarter 2014.
  • program of redemption of stocks: during the second quarter 2015 the company redeemed 2.9 million shares on the total cost of $255 million, in comparison with $194 million in the second quarter 2014.
  • balance in cash and cost of marketable securities: for June 30, 2015 made $3,611 million, in comparison with $3,643 million for June 30, 2014. Change reflects the active cash flow compensated the expanded programme of redemption of stocks and recent acquisitions of the company.

2013: Growth of revenue to $1.39 billion, profit to $620 million, leadership in EMEA

The net profit of the Israeli company Check Point on US GAAP in 2013 grew by 5% — to 652.8 million dollars in comparison with 620 million dollars in 2012. Revenue in reporting period grew by 4% — to 1.39 billion dollars against 1.34 billion dollars in 2012. Earning per share was 3.27 dollars in comparison with 2.96 dollars in 2012. Operating profit in 2013 was 760.9 million dollars in comparison with 746.5 million dollars in 2012.

The market of security aids of the region Europe, the Middle East and Africa (EMEA) grew by 2.4% in comparison with 2012 and made 2.5 bln. dollars. The largest and quickly developing segment of the considered market analysts call multifunction hardware and software systems for protection of computer networks – UTM solutions (Unified threat management). At the same time IDC predicts that the market of technical means information security by 2018 will reach in value term 4.2 bln. dollars with an annual average growth in 5.4%.

At the end of 2013 Check Point took the leading position among suppliers on revenue from sales of technical means of information security in EMEA region. According to IDC, revenue of vendor in this segment for this year grew by 3.8% and made 374.64 million dollars that corresponds to a market share in 19.3%.

2012: Growth of revenue by 8% to 1.34 billion rub

Key results of financial activities in 2012 (came to the end on December 31, 2012)

  • Revenue: $1,342.7 million that is 8% more in comparison with $1,247.0 million in 2011.

  • Operating income (GAAP): 746.5 million US dollars that is 16% more in comparison with 642.2 million US dollars in 2011. The current profit (GAAP) made 56% whereas in 2011 it was 51%.

  • Operating income (non-GAAP): 798.9 million US dollars that is 10% more in comparison with 725.9 million US dollars in 2011. The current profit (non-GAAP) made 59% whereas in 2011 it was 58%.

  • Net profit and income on the diluted action (GAAP): Net profit was 620.0 million US dollars that is 14% more in comparison with 544.0 million US dollars in 2011. Income on the diluted action (GAAP) was 2.96 US dollars that is 17% more in comparison with 2.54 US dollars in 2011.

  • Net profit and income on the diluted action (non-GAAP): Net profit was 667.9 million US dollars that is 9% more in comparison with 613.6 million US dollars in 2011. Income on the diluted action (non-GAAP) was 3.19 US dollars that is 11% more in comparison with 2.87 US dollars in 2011.

  • Cash flow: Cash flow from transactions made 815.8 million US dollars that means growth by 14% in comparison with 714.9 million US dollars in 2011.

  • Program of redemption of stocks: during 2012 the company redeemed 9.5 million shares on the total cost of 466.2 million US dollars.

2011: Growth of revenue by 14% to $1.09 billion

The key financial performance for 2011 which came to the end on December 31, 2011

  • Revenue: 1247 million dollars that is 14% more in comparison with 1097.9 million dollars in 2010.

  • Operating income (GAAP): 642.2 million dollars that is 20% more in comparison with 535.0 million dollars in 2010. The current profit (GAAP) made 51%, having increased in comparison with 49% in 2010.

  • Operating income (non-GAAP): 725.9 million dollars that is 17% more in comparison with 622.7 million dollars in 2010. The current profit (non-GAAP) made 58%, having increased in comparison with 57% in 2010.

  • Net profit and income on the diluted action (GAAP): net profit was 544.0 million dollars that is 20% more in comparison with 452.8 million dollars in 2010. Income on the diluted action (GAAP) was 2.54 dollars that is 19% more in comparison with 2.13 dollars in 2010.

  • Net profit and income on the diluted action (non-GAAP): net profit was 613.6 million dollars that is 16% more in comparison with 528 million dollars in 2010. Income on the diluted action (non-GAAP) was 2.87 dollars that is 16% more in comparison with 2.48 dollars in 2010.

  • Cash flow: cash flow from transactions made 714.9 million dollars in comparison with 674.1 million dollars in 2010.

2010

Financial results in a year: growth of turnover by 19%

Key results of the financial activities in 2010 which ended on December 31, 2010:

  • Total income: 1097.9 million dollars that is 19 percent more in comparison with 924.4 million in 2009.

  • Operating margin — according to the GAAP standards: 535.0 million dollars that is 29 percent more in comparison with 415.0 million in 2009. Net profit according to the GAAP standards was 49 percent, in comparison with 45 percent in 2009.

  • Operating margin — not according to the GAAP standards: 622.7 million dollars that for 23 percent it is more in comparison with 505.7 million in 2009. Net profit according to the GAAP standards was 57 percent, in comparison with 55 percent in 2009.

  • Net profit and income on a watered action according to the GAAP standards: Net income from the GAAP standards was 452.8 million dollars that is 27 percent more in comparison with 357.5 million dollars for 2009. Income on a watered action according to the GAAP standards was 2.13 dollars that is 26 percent more in comparison with 1.68 dollars for 2009.

  • Net profit and income on a watered action not according to the GAAP standards: Net income not according to the GAAP standards was 528.0 million dollars that is 21 percent more in comparison with 435.3 million dollars for 2009. Income on a watered action not according to the GAAP standards was 2.48 dollars that is 21 percent more in comparison with 2.05 dollars for 2009.
  • Cash flow: Money from primary activity was 674.1 million dollars that is 23 percent more in comparison with 548.7 million dollars for 2009.

Financial results for the 4th quarter: growth of turnover by 17%

Key results of financial activities for the fourth quarter 2010, ended on December 31, 2010:

  • Total income: 318.5 million dollars that is 17 percent more in comparison with 272.1 million dollars for the fourth quarter 2009.
  • Operating margin — according to the GAAP standards: 162.0 million dollars that is 24 percent more in comparison with 130.6 million dollars for the fourth quarter 2009. Net profit according to the GAAP standards was 51 percent in comparison with 48 percent in the fourth quarter 2009.
  • Operating margin — not according to the GAAP standards: 183.6 million dollars that is 20 percent more in comparison with 152.7 million dollars for the fourth quarter 2009. Net profit not according to the GAAP standards was 58 percent in comparison with 56 percent in the fourth quarter 2009.
  • Net profit and diluted earnings per share according to the GAAP standards: net income from the GAAP standards was 137.4 million dollars that is 25 percent more in comparison with 109.5 million dollars for the fourth quarter 2009. Diluted earnings per share according to the GAAP standards made 0.64 dollars that is 25 percent more in comparison with 0.51 dollars for the fourth quarter 2009.
  • Net profit and diluted earnings per share not according to the GAAP standards: net income not according to the GAAP standards was 156.2 million dollars that is 21 percent more in comparison with 129.5 million dollars for the fourth quarter 2009. Diluted earnings per share not according to the GAAP standards made 0.73 dollars that is 20 percent more in comparison with 0.61 dollars for the fourth quarter 2009.
  • The postponed revenue: 464.6 million US dollars for December 31, 2010 that is 9 percent more in comparison with 425.3 million dollars for December 31, 2009.
  • Cash flow: money from primary activity was 162.8 million dollars that is 18 percent more in comparison with 138.1 million dollars for the fourth quarter 2009.
  • Program of redemption of stocks: for the fourth quarter 2010 we redeemed 1.16 million shares with a total cost of 50 million dollars.
  • The cash and investments bringing interest income: 2414.9 million dollars for December 31, 2010 that for 567.9 million dollars it is more in comparison and 1847.0 million dollars for December 31, 2009.

2008: Growth of turnover by 11% to $808 million

The gross income of Check Point for 2008 financial year made $808.5 million that is 11% more in comparison with $730.9 million in 2007. Operating income on GAAP was $356.5 million ($370.6 million in 2007). Net profit on GAAP reached a point of $324 million that is 15% more in comparison with $281.1 million for 2007. Net profit not on GAAP was $386 million that is 8% more in comparison with an indicator in $358.7 million for previous year.

Income on the diluted action on GAAP was $1.5 that is 20% more in comparison with $1.25 for 2007; the similar indicator not on GAAP was $1.78 that for 12% exceeds an indicator in the amount of $1.59 for 2007. Cash flow made $429.9 million that is 16% more in comparison with $371.6 million in 2007. The cash amount and investments as of December 31, 2008 made $1.444 billion.

During 2008 the Check Point company redeemed only about 10.9 million shares for the total amount of $239.5 million.

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Stock price dynamics

Ticker company on the exchange: NASDAQ:CHKP