CHKP Q3 2019 Earnings Report — Check Point Software Technologies Ltd. Revenue & Financial Results | Market Cap Arena

Check Point Software Technologies Ltd.CHKP

Q3 2019 Earnings

Reported October 28, 2019

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q3 2019	Q2 2019	Q3 2018	QoQ Change	YoY Change
Revenue	$491M	$488M	$471M	0.6%	4.3%
Op. Income	$214M	$213M	$226M	0.6%	-5.4%
Gross Margin	89.3%	89.3%	89.5%	0.0pp	-0.2pp
Net Margin	38.3%	38.0%	42.1%	0.3pp	-3.8pp
EPS (Diluted)	$1.25	$1.21	$1.25	3.3%	0.0%
Free Cash Flow	$239M	$228M	$245M	4.9%	-2.6%

Revenue Flow

Item	Amount
REVENUE	$491M
Cost of Revenue	$52M
GROSS PROFIT	$438M
R&D Expenses	$60M
Selling & Marketing	$137M
General & Administrative	$27M
SG&A Expenses	$165M
Other Expenses	$0
Operating Expenses	$225M
Cost & Expenses	$277M
OPERATING INCOME	$214M
Interest Income	$21M
Interest Expense	$0
Other Income/Expenses	$21M
INCOME BEFORE TAX	$235M
Income Tax Expense	$47M
Net Income from Continuing Ops	$188M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$188M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$188M
D&A	$6M
EBIT	$214M
EBITDA	$220M
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$491M
Cost of Revenue	$52M
GROSS PROFIT	$438M
R&D Expenses	$60M
Selling & Marketing	$137M
General & Administrative	$27M
SG&A Expenses	$165M
Other Expenses	$0
Operating Expenses	$225M
Cost & Expenses	$277M
OPERATING INCOME	$214M
Interest Income	$21M
Interest Expense	$0
Other Income/Expenses	$21M
INCOME BEFORE TAX	$235M
Income Tax Expense	$47M
Net Income from Continuing Ops	$188M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$188M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$188M
D&A	$6M
EBIT	$214M
EBITDA	$220M
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$188M
Depreciation & Amortization	$6M
Stock-Based Compensation	$29M
Deferred Income Tax	$4M
Other Non-Cash Items	-$300.0K
Change in Working Capital	$17M
OPERATING CASH FLOW	$244M
Capital Expenditure	-$6M
Acquisitions (Net)	$400.0K
Purchases of Investments	$0
Sales/Maturities of Investments	$0
Other Investing Activities	$0
NET CASH FROM INVESTING	-$5M
Net Debt Issuance	$0
Common Stock Repurchased	-$323M
Common Dividends Paid	$0
Other Financing Activities	$22M
NET CASH FROM FINANCING	-$302M
FREE CASH FLOW	$239M
Net Change in Cash	-$55M

Balance Sheet

Item	Amount
Cash & Equivalents	$302M
Short-Term Investments	$1.4B
Net Receivables	$292M
Inventory	$0
Other Current Assets	$0
TOTAL CURRENT ASSETS	$2.0B
PP&E (Net)	$87M
Goodwill	$0
Intangible Assets	$992M
Long-Term Investments	$2.4B
Tax Assets	$59M
Other Non-Current Assets	$88M
TOTAL NON-CURRENT ASSETS	$3.6B
TOTAL ASSETS	$5.6B
Account Payables	$355M
Short-Term Debt	$0
Deferred Revenue	$900M
Other Current Liabilities	$0
TOTAL CURRENT LIABILITIES	$1.3B
Long-Term Debt	$0
Deferred Revenue NC	$342M
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$461M
TOTAL NON-CURRENT LIABILITIES	$803M
TOTAL LIABILITIES	$2.1B
Common Stock	$774.0K
Additional Paid-In Capital	$1.7B
Retained Earnings	$9.6B
Treasury Stock	-$7.8B
Accum. Other Comp. Income	$21M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$3.6B
Minority Interest	$0
TOTAL EQUITY	$3.6B
TOTAL LIABILITIES & EQUITY	$5.6B
Total Debt	$0
Net Debt	-$302M