Rubrik: World-wide News/Products & News

Check Point: Strong First Quarter Financial Results

New Perimeter and Internal Security Solutions Fuel Growth

(27.04.04) - Check Point Software Technologies Ltd. (NASDAQ: CHKP) announced its financial results for the first quarter ended March 31, 2004. Revenues for the first quarter were 116.1 million Dollar, an increase of 11 percent compared to 104.8 million Dollar in the first quarter of 2003.

The acquisition of Zone Labs was concluded on March 26, 2004 and its operating results were not included in the Statement of Operations. The impact of the acquisition is reflected in a one time in-process R&D charge and on the Balance Sheet.

Net income and earnings per diluted share for the first quarter of 2004, including the in-process R&D charge of 23.1 million Dollar related to the acquisition of Zone Labs, were 41.9 million Dollar and 0.16 Dollar respectively.

Net income and earnings per diluted share, excluding the impact of the in-process R&D charge, were 65.0 million Dollar and 0.25 Dollar, an increase of 8 percent and 5 percent, respectively, compared to 60.1 Dollar million and 0.24 Dollar in the first quarter of 2003.

The Consolidated Balance Sheet as of March 31, 2004 includes all assets and liabilities of Zone Labs, including goodwill and intangible assets recorded as a result of the acquisition. Intangible assets and stock based compensation in the aggregate amount of 42 million Dollar will be amortized over the next four years.

Deferred revenues increased by a total of 18.5 million Dollar, 9.8 million Dollar of which was generated by the Check Point business during the quarter and 8.7 million Dollar is attributed to the consolidation of Zone Labs.

Cash flow in the first quarter was strong. Excluding the impact of the Zone Labs acquisition, the company generated net cash flow of 75 million Dollar. Total cash and interest bearing investments as of March 31, 2004 was 1.58 billion Dollar.

"The first quarter of 2004 proved to be a strong start to the year," said Gil Shwed, chairman and CEO of Check Point. "We successfully executed our planned strategy of delivering perimeter and internal security solutions and delivered groundbreaking technology to protect networks from internal threats. This was evidenced by the success of our 'VPN-1 Edge' and 'Check Point Express' products introduced last year and our new 'InterSpect' solution released in January." (ma)

Check Point Software Technologies

Kontakt: Hermine Pichler

Tel. (0811) 60052-0, Fax (0811) 60052-99

E-Mail: hermine@checkpoint.com

Web: www.checkpoint.com