INVESTOR CONTACT:
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MEDIA CONTACT:
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Kip E. Meintzer
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Gil Messing
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Check Point Software
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Check Point Software
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+1.650.628.2040
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+1.650.628.2260
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ir@checkpoint.com
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press@checkpoint.com
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• |
Total Revenues: $599 million, a 6 percent increase year over year
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• |
Security Subscription Revenues: $263 million, a 15 percent increase year over year
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• |
GAAP Operating Income: $194 million, representing 32 percent of total revenues
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• |
Non-GAAP Operating Income: $252 million, representing 42 percent of total revenues
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• |
GAAP EPS: $1.60, a 5 percent increase year over year
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• |
Non-GAAP EPS: $2.04, a 13 percent increase year over year
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Total Revenues: $599 million compared to $566 million in the first quarter 2023, a 6 percent increase year over year.
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• |
GAAP Operating Income: $194 million compared to $200 million in the first quarter 2023, representing 32 percent and 35 percent of total revenues in the first quarter 2024 and 2023, respectively.
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• |
Non-GAAP Operating Income: $252 million compared to $238 million in the first quarter 2023, representing 42 percent of total revenues in both the first quarter 2024 and 2023.
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GAAP Taxes on Income: $33 million compared to $35 million in the first quarter 2023.
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• |
GAAP Net Income & Earnings per Diluted Share: GAAP net income was $184 million same as in the first quarter 2023. GAAP earnings per diluted share were $1.60 compared to $1.52 in the first
quarter 2023, a 5 percent increase year over year.
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• |
Non-GAAP Net Income & Earnings per Diluted Share: Non-GAAP net income was $235 million compared to $218 million in the first quarter 2023. Non-GAAP earnings per diluted share were $2.04
compared to $1.80 in the first quarter 2023, a 13 percent increase year over year.
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• |
Deferred Revenues: As of March 31, 2024, deferred revenues were $1,826 million compared to $1,797 million as of March 31, 2023, a 2 percent increase year over year.
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• |
Cash Balances, Marketable Securities & Short-Term Deposits: $3,035 million as of March 31, 2024, compared to $2,960 million as of December 31, 2023.
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• |
Cash Flow from Operations: Cash flow of $361 million compared to $386 million in the first quarter 2023.
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• |
Share Repurchase Program: During the first quarter of 2024, the company repurchased approximately 2.0 million shares at a total cost of approximately $325 million.
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Three Months Ended
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||||||||
March 31,
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||||||||
2024
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2023
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|||||||
Revenues:
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||||||||
Products and licenses
|
$
|
100.3
|
$
|
108.0
|
||||
Security subscriptions
|
263.4
|
228.2
|
||||||
Total revenues from products and security subscriptions
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363.7
|
336.2
|
||||||
Software updates and maintenance
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235.1
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230.0
|
||||||
Total revenues
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598.8
|
566.2
|
||||||
Operating expenses:
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||||||||
Cost of products and licenses
|
19.9
|
26.2
|
||||||
Cost of security subscriptions
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16.5
|
12.3
|
||||||
Total cost of products and security subscriptions
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36.4
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38.5
|
||||||
Cost of Software updates and maintenance
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28.7
|
26.8
|
||||||
Amortization of technology
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5.8
|
2.8
|
||||||
Total cost of revenues
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70.9
|
68.1
|
||||||
Research and development
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99.2
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91.5
|
||||||
Selling and marketing
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206.2
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177.7
|
||||||
General and administrative
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28.6
|
29.1
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||||||
Total operating expenses
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404.9
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366.4
|
||||||
Operating income
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193.9
|
199.8
|
||||||
Financial income, net
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22.6
|
19.1
|
||||||
Income before taxes on income
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216.5
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218.9
|
||||||
Taxes on income
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32.6
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34.8
|
||||||
Net income
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$
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183.9
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$
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184.1
|
||||
Basic earnings per share
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$
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1.64
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$
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1.54
|
||||
Number of shares used in computing basic earnings per share
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112.3
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119.8
|
||||||
Diluted earnings per share
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$
|
1.60
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$
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1.52
|
||||
Number of shares used in computing diluted earnings per share
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115.2
|
121.1
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2024
|
2023
|
|||||||
Revenues
|
$
|
598.8
|
$
|
566.2
|
||||
Non-GAAP operating income
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252.0
|
238.4
|
||||||
Non-GAAP net income
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234.5
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217.9
|
||||||
Non-GAAP diluted earnings per share
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$
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2.04
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$
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1.80
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||||
Number of shares used in computing diluted Non-GAAP earnings per share
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115.2
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121.1
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Three Months Ended
|
||||||||
March 31,
|
||||||||
2024
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2023
|
|||||||
GAAP operating income
|
$
|
193.9
|
$
|
199.8
|
||||
Stock-based compensation (1)
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41.6
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32.7
|
||||||
Amortization of intangible assets and acquisition related expenses (2)
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16.5
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5.9
|
||||||
Non-GAAP operating income
|
$
|
252.0
|
$
|
238.4
|
||||
GAAP net income
|
$
|
183.9
|
$
|
184.1
|
||||
Stock-based compensation (1)
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41.6
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32.7
|
||||||
Amortization of intangible assets and acquisition related expenses (2)
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16.5
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5.9
|
||||||
Taxes on the above items (3)
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(7.5
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)
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(4.8
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)
|
||||
Non-GAAP net income
|
$
|
234.5
|
$
|
217.9
|
||||
GAAP diluted earnings per share
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$
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1.60
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$
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1.52
|
||||
Stock-based compensation (1)
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0.36
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0.27
|
||||||
Amortization of intangible assets and acquisition related expenses (2)
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0.15
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0.05
|
||||||
Taxes on the above items (3)
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(0.07
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)
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(0.04
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)
|
||||
Non-GAAP diluted earnings per share
|
$
|
2.04
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$
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1.80
|
||||
Number of shares used in computing diluted Non-GAAP earnings per share
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115.2
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121.1
|
||||||
(1) Stock-based compensation:
|
||||||||
Cost of products and licenses
|
$
|
0.1
|
$
|
0.1
|
||||
Cost of software updates and maintenance
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2.2
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1.2
|
||||||
Research and development
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14.7
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10.6
|
||||||
Selling and marketing
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15.9
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11.3
|
||||||
General and administrative
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8.7
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9.5
|
||||||
41.6
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32.7
|
|||||||
(2) Amortization of intangible assets and acquisition related expenses:
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||||||||
Amortization of technology-cost of revenues
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5.8
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2.8
|
||||||
Research and development
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1.6
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1.9
|
||||||
Selling and marketing
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9.1
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1.2
|
||||||
16.5
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5.9
|
|||||||
(3) Taxes on the above items
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(7.5
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)
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(4.8
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)
|
||||
Total, net
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$
|
50.6
|
$
|
33.8
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March 31,
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December 31,
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|||||||
2024
(Unaudited)
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2023
(Audited)
|
|||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
536.6
|
$
|
537.7
|
||||
Marketable securities and short-term deposits
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1,065.8
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992.3
|
||||||
Trade receivables, net
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386.3
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657.7
|
||||||
Prepaid expenses and other current assets
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79.1
|
70.0
|
||||||
Total current assets
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2,067.8
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2,257.7
|
||||||
Long-term assets:
|
||||||||
Marketable securities
|
1,432.9
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1,429.7
|
||||||
Property and equipment, net
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79.6
|
80.4
|
||||||
Deferred tax asset, net
|
91.4
|
81.8
|
||||||
Goodwill and other intangible assets, net
|
1,735.0
|
1,748.5
|
||||||
Other assets
|
99.9
|
97.4
|
||||||
Total long-term assets
|
3,438.8
|
3,437.8
|
||||||
Total assets
|
$
|
5,506.6
|
$
|
5,695.5
|
Current liabilities:
|
||||||||
Deferred revenues
|
$
|
1,347.0
|
$
|
1,413.8
|
||||
Trade payables and other accrued liabilities
|
433.9
|
502.3
|
||||||
Total current liabilities
|
1,780.9
|
1,916.1
|
||||||
Long-term liabilities:
|
||||||||
Long-term deferred revenues
|
478.9
|
493.9
|
||||||
Income tax accrual
|
446.0
|
436.1
|
||||||
Other long-term liabilities
|
34.0
|
28.4
|
||||||
958.9
|
958.4
|
|||||||
Total liabilities
|
2,739.8
|
2,874.5
|
||||||
Shareholders’ equity:
|
||||||||
Share capital
|
0.8
|
0.8
|
||||||
Additional paid-in capital
|
2,808.0
|
2,732.5
|
||||||
Treasury shares at cost
|
(13,354.6
|
)
|
(13,041.2
|
)
|
||||
Accumulated other comprehensive gain
|
(39.4
|
)
|
(39.2
|
)
|
||||
Retained earnings
|
13,352.0
|
13,168.1
|
||||||
Total shareholders’ equity
|
2,766.8
|
2,821.0
|
||||||
Total liabilities and shareholders’ equity
|
$
|
5,506.6
|
$
|
5,695.5
|
||||
Total cash and cash equivalents, marketable securities, and short-term deposits
|
$
|
3,035.3
|
$
|
2,959.7
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2024
|
2023
|
|||||||
Cash flow from operating activities:
|
||||||||
Net income
|
$
|
183.9
|
$
|
184.1
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation of property and equipment
|
7.3
|
6.9
|
||||||
Amortization of intangible assets
|
13.5
|
3.3
|
||||||
Stock-based compensation
|
41.6
|
32.7
|
||||||
Decrease in trade and other receivables, net
|
265.4
|
285.1
|
||||||
Decrease in deferred revenues, trade payables and other accrued liabilities
|
(140.6
|
)
|
(127.1
|
)
|
||||
Deferred income taxes, net
|
(10.1
|
)
|
0.6
|
|||||
Net cash provided by operating activities
|
361.0
|
385.6
|
||||||
Cash flow from investing activities:
|
||||||||
Investment in property and equipment
|
(6.5
|
)
|
(4.2
|
)
|
||||
Net cash used in investing activities
|
(6.5
|
)
|
(4.2
|
)
|
||||
Cash flow from financing activities:
|
||||||||
Proceeds from issuance of shares upon exercise of options
|
45.6
|
34.1
|
||||||
Purchase of treasury shares
|
(325.0
|
)
|
(324.9
|
)
|
||||
Payments related to shares withheld for taxes
|
(1.1
|
)
|
(1.0
|
)
|
||||
Net cash used in financing activities
|
(280.5
|
)
|
(291.8
|
)
|
||||
Unrealized gain on marketable securities, net
|
1.6
|
26.6
|
||||||
Increase in cash and cash equivalents, marketable securities, and short-term deposits
|
75.6
|
116.2
|
||||||
Cash and cash equivalents, marketable securities, and short-term deposits at the beginning of the period
|
2,959.7
|
3,503.2
|
||||||
Cash and cash equivalents, marketable securities, and short-term deposits at the end of the period
|
$
|
3,035.3
|
$
|
3,619.4
|
CHECK POINT SOFTWARE TECHNOLOGIES LTD.
|
|
By: /s/ Roei Golan
Roei Golan
Chief Financial Officer
|