CHKP Q4 2018 Earnings Report — Check Point Software Technologies Ltd. Revenue & Financial Results | Market Cap Arena

Check Point Software Technologies Ltd.CHKP

Q4 2018 Earnings

Reported April 23, 2019

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q4 2018	Q3 2018	Q4 2017	QoQ Change	YoY Change
Revenue	$526M	$471M	$506M	11.6%	3.9%
Op. Income	$250M	$226M	$267M	10.7%	-6.1%
Gross Margin	88.7%	89.5%	88.5%	-0.8pp	0.3pp
Net Margin	45.3%	42.1%	47.3%	3.2pp	-2.0pp
EPS (Diluted)	$1.51	$1.25	$1.46	20.8%	3.4%
Free Cash Flow	$258M	$245M	$262M	5.2%	-1.4%

Revenue Flow

Item	Amount
REVENUE	$526M
Cost of Revenue	$59M
GROSS PROFIT	$466M
R&D Expenses	$57M
Selling & Marketing	$132M
General & Administrative	$26M
SG&A Expenses	$159M
Other Expenses	$0
Operating Expenses	$216M
Cost & Expenses	$275M
OPERATING INCOME	$250M
Interest Income	$17M
Interest Expense	$38M
Other Income/Expenses	$17M
INCOME BEFORE TAX	$267M
Income Tax Expense	$29M
Net Income from Continuing Ops	$238M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$238M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$238M
D&A	$6M
EBIT	$318M
EBITDA	$323M
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$526M
Cost of Revenue	$59M
GROSS PROFIT	$466M
R&D Expenses	$57M
Selling & Marketing	$132M
General & Administrative	$26M
SG&A Expenses	$159M
Other Expenses	$0
Operating Expenses	$216M
Cost & Expenses	$275M
OPERATING INCOME	$250M
Interest Income	$17M
Interest Expense	$38M
Other Income/Expenses	$17M
INCOME BEFORE TAX	$267M
Income Tax Expense	$29M
Net Income from Continuing Ops	$238M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$238M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$238M
D&A	$6M
EBIT	$318M
EBITDA	$323M
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$238M
Depreciation & Amortization	$6M
Stock-Based Compensation	$25M
Deferred Income Tax	$9M
Other Non-Cash Items	$15M
Change in Working Capital	-$31M
OPERATING CASH FLOW	$262M
Capital Expenditure	-$4M
Acquisitions (Net)	$0
Purchases of Investments	$0
Sales/Maturities of Investments	$0
Other Investing Activities	-$313M
NET CASH FROM INVESTING	-$317M
Net Debt Issuance	$0
Common Stock Repurchased	-$305M
Common Dividends Paid	$0
Other Financing Activities	$171M
NET CASH FROM FINANCING	-$134M
FREE CASH FLOW	$258M
Net Change in Cash	-$3.8B

Balance Sheet

Item	Amount
Cash & Equivalents	$304M
Short-Term Investments	$1.4B
Net Receivables	$495M
Inventory	$0
Other Current Assets	$23M
TOTAL CURRENT ASSETS	$2.3B
PP&E (Net)	$79M
Goodwill	$951M
Intangible Assets	$41M
Long-Term Investments	$2.3B
Tax Assets	$85M
Other Non-Current Assets	$64M
TOTAL NON-CURRENT ASSETS	$3.5B
TOTAL ASSETS	$5.8B
Account Payables	$21M
Short-Term Debt	$0
Deferred Revenue	$980M
Other Current Liabilities	$174M
TOTAL CURRENT LIABILITIES	$1.3B
Long-Term Debt	$0
Deferred Revenue NC	$358M
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$366M
TOTAL NON-CURRENT LIABILITIES	$724M
TOTAL LIABILITIES	$2.1B
Common Stock	$774.0K
Additional Paid-In Capital	$1.6B
Retained Earnings	$9.0B
Treasury Stock	-$6.8B
Accum. Other Comp. Income	-$24M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$3.8B
Minority Interest	$0
TOTAL EQUITY	$3.8B
TOTAL LIABILITIES & EQUITY	$5.8B
Total Debt	$0
Net Debt	-$304M