Artificial Intelligence
Check Point Software Technologies Reports 2021 Second Quarter Financial Results
SAN CARLOS, Calif., July 26, 2021 (GLOBE NEWSWIRE) — Check Point® Software Technologies Ltd. (NASDAQ: CHKP), today announced its financial results for the second quarter ended June 30, 2021.
Second Quarter 2021:
- Total Revenue: $526 million, a 4 percent increase year over year
- Deferred Revenues: $1,472 million, a 10 percent increase year over year
- GAAP Operating Income: $222 million, representing 42 percent of revenues
- Non-GAAP Operating Income: $257 million, representing 49 percent of revenues
- GAAP EPS: $1.38, same as last year
- Non-GAAP EPS: $1.61, a 2 percent increase year over year
- Cash flow from operations: $264 million, a 4 percent increase year over year
“We had a good second quarter. Strong execution drove double-digit growth across CloudGuard and Harmony, and triple-digit growth in Infinity platform sales. Overall we grew our security subscription revenues by 12 percent,” said Gil Shwed, Founder and CEO of Check Point Software Technologies. “We’ve seen a 93 percent increase in ransomware attacks, as Gen V attacks are now the new norm. We believe organizations can stop the next cyber pandemic by adopting a prevention-first approach to security across the network, cloud and remote users.”
Financial Highlights for the Second Quarter of 2021:
- Total Revenue: $526 million compared to $506 million in the second quarter of 2020, a 4 percent increase year over year.
- GAAP Operating Income: $222 million compared to $221 million in the second quarter of 2020, representing 42 percent and 44 percent of revenues in the second quarter of 2021 and 2020, respectively.
- Non-GAAP Operating Income: $257 million compared to $253 million in the second quarter of 2020, representing 49 percent and 50 percent of revenues in the second quarter of 2021 and 2020, respectively.
- GAAP Taxes on Income: $47 million compared to $43 million in the second quarter of 2020.
- GAAP Net Income: $186 million compared to $196 million in the second quarter of 2020.
- Non-GAAP Net Income: $217 million compared to $225 million in the second quarter of 2020.
- GAAP Earnings per Diluted share: $1.38 same as in the second quarter of 2020.
- Non-GAAP Earnings per Diluted share: $1.61 compared to $1.58 in the second quarter of 2020, a 2 percent increase year over year.
- Deferred Revenues: As of June 30, 2021, deferred revenues were $1,472 million compared to $1,338 million as of June 30, 2020, a 10 percent increase year over year.
- Cash Balances, Marketable Securities and Short Term Deposits: $4,002 million as of June 30, 2021, compared to $3,959 million as of June 30, 2020.
- Cash Flow: Cash flow from operations of $264 million compared to $252 million in the second quarter of 2020, a 4 percent increase year over year.
- Share Repurchase Program: During the second quarter of 2021, the company repurchased approximately 2.7 million shares at a total cost of approximately $325 million.
For information regarding the non-GAAP financial measures discussed in this release, as well as a reconciliation of such non-GAAP financial measures to the most directly comparable GAAP financial measures, please see “Use of Non-GAAP Financial Information” and “Reconciliation of GAAP to Non-GAAP Financial Information.”
Business Highlights
In June, Check Point Software Technologies extended the capabilities of its Quantum Hybrid Data Center Security solution to deliver advanced protection for complex hybrid data centers.
- Check Point R81.10 software: New version of the Cyber Security platform delivers major improvements in security operational efficiency with unified security management from the web browser and parallel multi-admin support.
- The latest Quantum Maestro 175: Enables Quantum gateway orchestration to the capacity and performance of 52 gateways in minutes, giving companies elastic flexibility with Terabit per second threat prevention throughput
- Quantum Smart-1: Security Management appliances provide advanced protections for complex hybrid data centers with automated operations and an ultra-scalable platform.
To support the new ‘work from anywhere’ (WFA) environment, organizations accelerated their transition to the cloud which left them vulnerable to cloud-targeted attacks. Check Point expanded the capabilities of its unified Cloud Native Security Platform, to deliver application-first workload protection with Check Point CloudGuard Workload Protection. This fully automated cloud workload security solution empowers security teams with tools to automate security across applications, Application Programing Interfaces (APIs) and microservices from development to runtime via a single interface.
Check Point extended its multi-cloud support through the integration of Check Point CloudGuard with Alibaba Cloud, the digital intelligence and technology backbone of Alibaba Group and a global leader in cloud computing and artificial intelligence. Alibaba Cloud’s customers will benefit from enhanced cloud network security and posture management, while other organizations have the opportunity to leverage Alibaba Cloud within their multi-cloud environments.
Partnerships & Customers
Throughout the quarter, Check Point demonstrated its ongoing commitment to provide cyber-security education and training at all levels. In May, Check Point launched the Global Cloud Academy Education with its Platinum Elite ATC Partners – Arrow Electronics, Red Education and Westcon Security. Check Point is the first security solutions provider to address the knowledge gap in the industry by offering a dedicated certified education program specializing in cloud security globally.
In April, Check Point Software introduced new initiatives to its channel sales model to further accelerate benefits and profits for partners. The four new initiatives in Check Point’s Partner Growth Program further increase value to partners, and accelerate their access to benefits and rewards for sales-generating activities through closer collaboration with Check Point.
In July, Check Point Software became a sponsor of Deloitte’s new Industry 4.0 immersive experience center based in Wichita. The sponsorship identifies the need for cyber security as a core component of any secure smart factory and enables Check Point customers’ access to experience the advanced manufacturing methods and technologies at the heart of digital transformation.
Research & Cyber Security
Ransomware attacks continue to Surge, hitting a 93% increase year over year: Check Point Research (CPR) issued an updated data snapshot of global ransomware trends, including attacks per organizations by industry and regional attack trends. CPR found that average number of ransomware attacks each week increased by 20% in the last two months, 41% in the last six months, and 93% in the last 12 months. The recent attack on a U.S. pipeline is confirmation that the acceleration in sophisticated ransomware attacks is continuing. Following this attack, Check Point Research warned of a new ransomware threat called Triple Extortion.
Vulnerabilities in Applications & Infrastructure:
Security Flaws in Atlassian’s Platform Led to Account Takeover in One Click: Check Point Research (CPR) identified security flaws on Atlassian, the team collaboration and productivity platform used by 180,000 customers worldwide. With just one click, an attacker could have used the flaws to take over accounts and control some of Atlassian’s applications, including Jira and Confluence.
Four Security Vulnerabilities were found in Microsoft Office: Four security vulnerabilities affected products in the Microsoft Office suite, including Excel and Office online. If exploited, the vulnerabilities would grant an attacker the ability to execute code on targets via malicious Office documents, such as Word (.DOCX), Excel (.XLS) and Outlook (.EML). The vulnerabilities are the result of parsing mistakes made in legacy code found in Excel95 File Formats, giving researchers reason to believe that the security flaws have existed for several years.
Misconfiguration of third party cloud services exposed data of over 100 million users: After examining 23 Android applications on Google Play, Check Point discovered that mobile app developers have exposed the personal data of over 100 million users through a variety of misconfigurations of third party cloud services. Personal data included emails, chat messages, location, passwords and photos which, in hands of hackers, could lead to fraud and identity-theft.
Companies’ 5 Million Personal identifiable information records detected on an AWS service due to misconception of users: By analyzing and enumerating public AWS Systems Manager (SSM) documents, CPR retrieved over five million personally identifiable information records and credit card transactions of companies, including a global sportswear manufacturer.
Android users’ privacy at risk as Check Point Research identifies vulnerability on Qualcomm’s mobile station modems: Check Point Research (CPR) found a security vulnerability in Qualcomm’s mobile station modem (MSM), the chip responsible for cellular communication in nearly 40% of the world’s phones. If exploited, the vulnerability would have allowed an attacker to use Android OS itself as an entry point to inject malicious and invisible code into phones, granting them access to SMS messages and audio of phone conversations.
Malware and Campaigns Research:
Cybercriminals go after Amazon Prime Day Shoppers: Cybercriminals impersonated the Amazon brand ahead of the annual shopping event in order to trick consumers into credential theft of their email addresses, payment details and passwords, and more. In the run-up to Amazon Prime Day 2021, nearly 80% of domains containing the word “Amazon” were potentially dangerous.
New ‘ToxicEye’ RAT is the latest to use Telegram for command & control: There is a growing cyber threat where hackers use Telegram, the instant messaging app with over 500 million active users, as a command and control system to distribute malware into organizations. Even when Telegram is not installed or being used, the system allows hackers to send malicious commands and operations remotely via the instant messaging app.
Research & Recognitions
We continued our focus on security through innovation, industry research and recognition including:
Secure Access Service Edge (SASE) Solutions are the Future: Survey Uncovers Organizations’ Security Priorities for Hybrid Working: Check Point revealed the results from a survey showing how organizations have been impacted by the pandemic, particularly when it comes to IT and security strategies. The survey of 450 IT and security professionals revealed the impact that the pandemic has had on organizations as well as their security priorities for the hybrid workplace
Check Point Software Technologies Recognized as a Microsoft Security 20/20 Partner Award Winner for Most Transformative Integration Partner: At the second annual Microsoft Security 20/20 Awards held May 12, 2021, Microsoft announced award winners in 18 categories spanning security, compliance and identity. This year, Check Point Software is a winner for Microsoft Security 20/20 Most Transformative Integration Partner award. The company was honored among a global field of top Microsoft partners for demonstrating excellence in innovation, integration, and customer implementation with Microsoft technology.
MITRE Engenuity ATT&CK® Evaluations Highlight Check Point Software’s Leadership in Endpoint Security: In the MITRE ATT&CK Endpoint Protection Product Evaluation, Check Point Harmony Endpoint successfully detected 100% of the unique techniques used during the evaluations. Furthermore, Check Point Harmony Endpoint achieved the highest technique detection level for 96% of the unique techniques used in the evaluations.
Conference Call and Webcast Information
Check Point will host a conference call with the investment community on July 26, 2021, at 8:30 AM ET/5:30 AM PT. To listen to the live video cast or replay, please visit the website: www.checkpoint.com/ir.
Third Quarter Investor Conference Participation Schedule:
- Oppenheimer 24th Annual Virtual Technology, Internet & Communications Conference
August 9, 2021 – Virtual 1×1’s - Nasdaq Virtual Asia Investor Conference
August 9-10, 2021 – Virtual 1×1’s - KeyBanc Virtual Technology Leadership Forum
August 11, 2021 – Virtual Fireside Chat & 1×1’s - BMO 2021 Virtual Technology Summit
August 24, 2021 – Virtual Fireside Chat & 1×1’s - Deutsche Bank 2021 Technology Conference
September 9-10, 2021 – Physical 1×1’s - Citi 2021 Global Technology Virtual Conference
September 13, 2021 – Virtual 1×1’s - Piper Sandler 2021 Virtual Global Technology Conference
September 14, 2021 – Virtual 1×1’s - Jefferies 2021 Virtual Technology Conference
September 14, 2021 – Virtual 1×1’s - Morningstar Management Behind The Moat Virtual Conference
September 15, 2021 – Virtual 1×1’s
Members of Check Point’s management team are expected to present at these conferences and discuss the latest company strategies and initiatives. Check Point’s conference presentations are expected to be available via webcast on the company’s web site. To access these presentations and the most updated information please visit the company’s web site at www.checkpoint.com/ir. The schedule is subject to change.
About Check Point Software Technologies Ltd.
Check Point Software Technologies Ltd. (www.checkpoint.com) is a leading provider of cyber security solutions to governments and corporate enterprises globally. Check Point Infinity’s portfolio of solutions protects enterprises and public organizations from 5th generation cyber-attacks with an industry leading catch rate of malware, ransomware and other threats. Infinity comprises three core pillars delivering uncompromised security and generation V threat prevention across enterprise environments: Check Point Harmony, for remote users; Check Point CloudGuard, to automatically secure clouds; and Check Point Quantum, to protect network perimeters and datacenters, all controlled by the industry’s most comprehensive, intuitive unified security management. Check Point protects over 100,000 organizations of all sizes.
©2021 Check Point Software Technologies Ltd. All rights reserved
Legal Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally relate to future events or our future financial or operating performance. Forward-looking statements in this press release include, but are not limited to, statements related to our expectations regarding our products and solutions and partnerships, the effects on our business of the COVID-19 pandemic, expectations related to our new channel initiatives, and our participation in investor conferences during the third quarter of 2021. Our expectations and beliefs regarding these matters may not materialize, and actual results or events in the future are subject to risks and uncertainties that could cause actual results or events to differ materially from those projected. These risks include our ability to continue to develop platform capabilities and solutions; customer acceptance and purchase of our existing solutions and new solutions; the continued effects on our business of the COVID-19 pandemic, the market for IT security continuing to develop; competition from other products and services; and general market, political, economic and business conditions. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in our filings with the Securities and Exchange Commission, including our Annual Report on Form 20-F filed with the Securities and Exchange Commission on April 2, 2021. The forward-looking statements in this press release are based on information available to Check Point as of the date hereof, and Check Point disclaims any obligation to update any forward-looking statements, except as required by law.
Use of Non-GAAP Financial Information
In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Check Point uses non-GAAP measures of operating income, net income and earnings per diluted share, which are adjustments from results based on GAAP to exclude, as applicable, stock-based compensation expenses, amortization of intangible assets and acquisition related expenses and the related tax affects. Check Point’s management believes the non-GAAP financial information provided in this release is useful to investors’ understanding and assessment of Check Point’s ongoing core operations and prospects for the future. Historically, Check Point has also publicly presented these supplemental non-GAAP financial measures in order to assist the investment community to see the Company “through the eyes of management,” and thereby enhance understanding of its operating performance. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of the non-GAAP financial measures discussed in this press release to the most directly comparable GAAP financial measures is included with the financial statements contained in this press release. Management uses both GAAP and non-GAAP information in evaluating and operating business internally and as such has determined that it is important to provide this information to investors.
CHECK POINT SOFTWARE TECHNOLOGIES LTD.
CONSOLIDATED STATEMENT OF INCOME
(Unaudited, in millions, except per share amounts)
Three Months Ended |
Six Months Ended |
||||||||||
June 30, |
June 30, |
||||||||||
2021 |
2020 |
2021 |
2020 |
||||||||
Revenues: |
|
|
|||||||||
Products and licenses |
$ |
119.1 |
$ |
122.6 |
$ |
228.4 |
$ |
232.8 |
|||
Security subscriptions |
183.7 |
164.0 |
361.1 |
322.8 |
|||||||
Total revenues from products and security |
302.8 |
286.6 |
589.5 |
555.6 |
|||||||
Software updates and maintenance |
223.3 |
219.0 |
444.2 |
436.5 |
|||||||
Total revenues |
526.1 |
505.6 |
1,033.7 |
992.1 |
|||||||
Operating expenses: |
|||||||||||
Cost of products and licenses |
23.2 |
22.5 |
44.8 |
43.4 |
|||||||
Cost of security subscriptions |
8.7 |
6.1 |
16.7 |
12.6 |
|||||||
Total cost of products and security |
31.9 |
28.6 |
61.5 |
56.0 |
|||||||
Cost of Software updates and |
25.6 |
24.0 |
50.9 |
47.2 |
|||||||
Amortization of technology |
1.7 |
1.6 |
3.4 |
3.2 |
|||||||
Total cost of revenues |
59.2 |
54.2 |
115.8 |
106.4 |
|||||||
|
|||||||||||
Research and development |
67.5 |
62.4 |
135.9 |
124.6 |
|||||||
Selling and marketing |
148.9 |
140.4 |
288.9 |
283.4 |
|||||||
General and administrative |
28.2 |
27.7 |
56.0 |
56.2 |
|||||||
Total operating expenses |
303.8 |
284.7 |
596.6 |
570.6 |
|||||||
Operating income |
222.3 |
220.9 |
437.1 |
421.5 |
|||||||
Financial income, net |
10.4 |
18.7 |
23.0 |
38.0 |
|||||||
Income before taxes on income |
232.7 |
239.6 |
460.1 |
459.5 |
|||||||
Taxes on income |
46.7 |
43.2 |
91.2 |
84.4 |
|||||||
Net income |
$ |
186.0 |
$ |
196.4 |
$ |
368.9 |
$ |
375.1 |
|||
Basic earnings per share |
$ |
1.39 |
$ |
1.39 |
$ |
2.74 |
$ |
2.63 |
|||
Number of shares used in computing basic earnings per share |
133.7 |
141.5 |
134.8 |
142.8 |
|||||||
Diluted earnings per share |
$ |
1.38 |
$ |
1.38 |
$ |
2.71 |
$ |
2.58 |
|||
Number of shares used in computing diluted earnings per share |
134.8 |
142.6 |
136.1 |
145.3 |
CHECK POINT SOFTWARE TECHNOLOGIES LTD.
SELECTED FINANCIAL METRICS
(Unaudited, in millions, except per share amounts)
Three Months Ended |
Six Months Ended |
|||||||||||
June 30, |
June 30, |
|||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||
Revenues |
$ |
526.1 |
$ |
505.6 |
$ |
1,033.7 |
$ |
992.1 |
||||
Non-GAAP operating income |
257.1 |
253.2 |
503.4 |
484.4 |
||||||||
Non-GAAP net income |
217.0 |
225.0 |
428.2 |
430.9 |
||||||||
Diluted Non-GAAP Earnings per share |
$ |
1.61 |
$ |
1.58 |
$ |
3.15 |
$ |
2.96 |
||||
Number of shares used in computing diluted Non-GAAP earnings per share |
134.8 |
142.6 |
136.1 |
145.3 |
CHECK POINT SOFTWARE TECHNOLOGIES LTD.
RECONCILIATION OF GAAP TO NON GAAP FINANCIAL INFORMATION
(Unaudited, in millions, except per share amounts)
Three Months Ended |
Six Months Ended |
|||||||||||||||
June 30, |
June 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
GAAP operating income |
$ |
222.3 |
$ |
220.9 |
$ |
437.1 |
$ |
421.5 |
||||||||
Stock-based compensation (1) |
29.9 |
28.0 |
56.5 |
54.4 |
||||||||||||
Amortization of intangible assets and |
4.9 |
4.3 |
9.8 |
8.5 |
||||||||||||
Non-GAAP operating income |
$ |
257.1 |
$ |
253.2 |
$ |
503.4 |
$ |
484.4 |
||||||||
GAAP net income |
$ |
186.0 |
$ |
196.4 |
$ |
368.9 |
$ |
375.1 |
||||||||
Stock-based compensation (1) |
29.9 |
28.0 |
56.5 |
54.4 |
||||||||||||
Amortization of intangible assets and |
4.9 |
4.3 |
9.8 |
8.5 |
||||||||||||
Taxes on the above items (3) |
(3.8 |
) |
(3.7 |
) |
(7.0 |
) |
(7.1 |
) |
||||||||
Non-GAAP net income |
$ |
217.0 |
$ |
225.0 |
$ |
428.2 |
$ |
430.9 |
||||||||
Diluted GAAP Earnings per share |
$ |
1.38 |
$ |
1.38 |
$ |
2.71 |
$ |
2.58 |
||||||||
Stock-based compensation (1) |
0.22 |
0.20 |
0.42 |
0.37 |
||||||||||||
Amortization of intangible assets and |
0.04 |
0.03 |
0.07 |
0.06 |
||||||||||||
Taxes on the above items (3) |
(0.03 |
) |
(0.03 |
) |
(0.05 |
) |
(0.05 |
) |
||||||||
Diluted Non-GAAP Earnings per share |
$ |
1.61 |
$ |
1.58 |
$ |
3.15 |
$ |
2.96 |
||||||||
Number of shares used in computing diluted |
134.8 |
142.6 |
136.1 |
145.3 |
||||||||||||
(1) Stock-based compensation: |
||||||||||||||||
Cost of products and licenses |
$ |
0.1 |
$ |
0.1 |
$ |
0.2 |
$ |
0.2 |
||||||||
Cost of software updates and maintenance |
1.1 |
1.0 |
2.0 |
1.9 |
||||||||||||
Research and development |
7.2 |
5.5 |
13.7 |
10.3 |
||||||||||||
Selling and marketing |
10.5 |
8.8 |
18.8 |
16.6 |
||||||||||||
General and administrative |
11.0 |
12.6 |
21.8 |
25.4 |
||||||||||||
29.9 |
28.0 |
56.5 |
54.4 |
|||||||||||||
(2) Amortization of intangible assets and |
||||||||||||||||
Amortization of technology-cost of revenues |
1.7 |
1.6 |
3.4 |
3.2 |
||||||||||||
Research and development |
1.3 |
0.9 |
2.6 |
1.7 |
||||||||||||
Selling and marketing |
1.9 |
1.8 |
3.8 |
3.6 |
||||||||||||
4.9 |
4.3 |
9.8 |
8.5 |
|||||||||||||
(3) Taxes on the above items |
(3.8 |
) |
(3.7 |
) |
(7.0 |
) |
(7.1 |
) |
||||||||
Total, net |
$ |
31.0 |
$ |
28.6 |
$ |
59.3 |
$ |
55.8 |
CHECK POINT SOFTWARE TECHNOLOGIES LTD.
CONDENSED CONSOLIDATED BALANCE SHEET DATA
(Unaudited, in millions)
ASSETS
June 30, |
December 31, |
||||||
2021 |
2020 |
||||||
Current assets: |
|||||||
Cash and cash equivalents |
$ |
356.6 |
$ |
255.7 |
|||
Marketable securities and short-term deposits |
1,502.8 |
1,432.0 |
|||||
Trade receivables, net |
368.4 |
540.8 |
|||||
Prepaid expenses and other current assets |
50.1 |
50.1 |
|||||
Total current assets |
2,277.9 |
2,278.6 |
|||||
Long-term assets: |
|||||||
Marketable securities |
2,142.6 |
2,311.9 |
|||||
Property and equipment, net |
85.0 |
88.1 |
|||||
Deferred tax asset, net |
40.6 |
34.4 |
|||||
Goodwill and other intangible assets, net |
1,036.5 |
1,040.7 |
|||||
Other assets |
76.9 |
85.5 |
|||||
Total long-term assets |
3,381.6 |
3,560.6 |
|||||
Total assets |
$ |
5,659.5 |
$ |
5,839.2 |
LIABILITIES AND
SHAREHOLDERS’ EQUITY
Current liabilities: |
|||||||||
Deferred revenues |
$ |
1,087.3 |
$ |
1,108.6 |
|||||
Trade payables and other accrued liabilities |
434.6 |
435.2 |
|||||||
Total current liabilities |
1,521.9 |
1,543.8 |
|||||||
Long-term liabilities: |
|||||||||
Long-term deferred revenues |
385.1 |
373.3 |
|||||||
Income tax accrual |
452.1 |
422.8 |
|||||||
Other long-term liabilities |
29.8 |
33.1 |
|||||||
867.0 |
829.2 |
||||||||
Total liabilities |
2,388.9 |
2,373.0 |
|||||||
Shareholders’ equity: |
|||||||||
Share capital |
0.8 |
0.8 |
|||||||
Additional paid-in capital |
2,106.1 |
2,028.4 |
|||||||
Treasury shares at cost |
(9,942.5 |
) |
(9,319.0 |
) |
|||||
Accumulated other comprehensive gain |
22.0 |
40.7 |
|||||||
Retained earnings |
11,084.2 |
10,715.3 |
|||||||
Total shareholders’ equity |
3,270.6 |
3,466.2 |
|||||||
Total liabilities and shareholders’ equity |
$ |
5,659.5 |
$ |
5,839.2 |
|||||
Total cash and cash equivalents, marketable |
$ |
4,002.0 |
$ |
3,999.6 |
CHECK POINT SOFTWARE TECHNOLOGIES LTD.
SELECTED CONSOLIDATED CASH FLOW DATA
(Unaudited, in millions)
Three Months Ended |
Six Months Ended |
||||||||||||||
June 30, |
June 30, |
||||||||||||||
2021 |
2020 |
2021 |
2020 |
||||||||||||
Cash flow from operating activities: |
|||||||||||||||
Net income |
$ |
186.0 |
$ |
196.4 |
$ |
368.9 |
$ |
375.1 |
|||||||
Adjustments to reconcile net income to net cash provided by |
|||||||||||||||
Depreciation of property and equipment |
5.5 |
4.4 |
10.2 |
9.0 |
|||||||||||
Amortization of intangible assets |
2.1 |
2.0 |
4.2 |
4.0 |
|||||||||||
Stock-based compensation |
29.9 |
28.0 |
56.5 |
54.4 |
|||||||||||
Realized gain on marketable securities |
(0.2 |
) |
(0.5 |
) |
(1.5 |
) |
(0.7 |
) |
|||||||
Decrease (increase) in trade and other receivables, net |
(24.9 |
) |
(7.0 |
) |
175.3 |
176.1 |
|||||||||
Increase (decrease) in deferred revenues, trade payables and |
63.3 |
23.6 |
24.0 |
(17.0 |
) |
||||||||||
Deferred income taxes, net |
1.9 |
5.5 |
0.5 |
10.5 |
|||||||||||
Net cash provided by operating activities |
263.6 |
252.4 |
638.1 |
611.4 |
|||||||||||
Cash flow from investing activities: |
|||||||||||||||
Investment in property and equipment |
(3.3 |
) |
(3.9 |
) |
(7.1 |
) |
(12.3 |
) |
|||||||
Net cash used in investing activities |
(3.3 |
) |
(3.9 |
) |
(7.1 |
) |
(12.3 |
) |
|||||||
Cash flow from financing activities: |
|||||||||||||||
Proceeds from issuance of shares upon exercise of options |
14.4 |
3.7 |
47.5 |
26.6 |
|||||||||||
Purchase of treasury shares |
(324.7 |
) |
(324.7 |
) |
(649.6 |
) |
(649.7 |
) |
|||||||
Payments related to shares withheld for taxes |
(4.9 |
) |
(4.1 |
) |
(5.8 |
) |
(4.8 |
) |
|||||||
Net cash used in financing activities |
(315.2 |
) |
(325.1 |
) |
(607.9 |
) |
(627.9 |
) |
|||||||
Unrealized gain (loss) on marketable securities, net |
(6.0 |
) |
46.3 |
(20.7 |
) |
39.5 |
|||||||||
Increase (decrease) in cash and cash equivalents, marketable securities and short term deposits |
(60.9 |
) |
(30.3 |
) |
2.4 |
10.7 |
|||||||||
Cash and cash equivalents, marketable securities and short term deposits at the beginning of the period |
4,062.9 |
3,989.7 |
3,999.6 |
3,948.7 |
|||||||||||
Cash and cash equivalents, marketable securities and short term deposits at the end of the period |
$ |
4,002.0 |
$ |
3,959.4 |
$ |
4,002.0 |
$ |
3,959.4 |
INVESTOR CONTACT: | MEDIA CONTACT: |
Kip E. Meintzer | Gil Messing |
Check Point Software Technologies | Check Point Software Technologies |
+1.650.628.2040 | +1.650.628.2260 |
[email protected] | [email protected] |
Artificial Intelligence
Clarifai and Crimson Phoenix Partner to Enhance Advanced AI, ML and Unstructured Data Labeling in Defense, Intelligence Communities
Combined Capabilities and Real-World Experience Accelerate AI Readiness to Support Any Mission
WASHINGTON and HERNDON, Va., Oct. 9, 2024 /PRNewswire/ — Clarifai, a global leader in computer vision and pioneer in AI orchestration and development, has partnered Crimson Phoenix, a premier provider of data-enabled solutions. This strategic alliance aims to deliver cutting-edge AI-enabled data labeling and computer vision capabilities for unstructured data such as images and video in the Intelligence and Defense communities.
The strategic partnership builds on an existing relationship as Crimson Phoenix was recently awarded a research contract to support the U.S. Army’s Autonomous Combat Casualty Care Initiative. Leveraging Clarifai’s full-stack AI development and computer vision platform, Crimson Phoenix will efficiently annotate complex medical imagery, ensuring the highest accuracy in AI and ML models for combat casualty care.
Moving forward, the ability to quickly and accurately label geospatial data sets, as well as other video, image, and sensor data will be a key advantage in Defense and Intelligence. The partnership will enable entities to identify targets of interest, track and maintain equipment, distinguish enemy soldiers from civilians, detect irregular activities, and support other mission-critical operations.
“We are thrilled to partner with Crimson Phoenix to manage complex data labeling and model building that will rapidly turn mountains of data into plans of decisive action that support the warfighter and the supply chain,” said Matt Zeiler, Ph.D., CEO of Clarifai. “Clarifai has long worked with the defense industry to improve the use of computer vision in battle and intelligence and this partnership will enable us to bring our industry-leading technology to more entities and use cases.”
Clarifai has delivered cutting-edge AI solutions for programs within United States Special Operations Command (USSOCOM), National Geospatial-Intelligence Agency (NGA), Department of Homeland Security (DHS), Department of Defense (DoD), and other Intelligence communities for years, including via Project Maven, the first large-scale AI program for the government. Clarifai was also named a leader and received the top score in the Current Offering category in The Forrester Wave™: Computer Vision Tools, Q1 2024. For U.S. government projects, Clarifai has cleared personnel and Awardable status through the Chief Digital and Artificial Intelligence Office’s (CDAO) Tradewinds Solutions Marketplace.
The partnership is the first of its kind for both Crimson Phoenix and Clarifai and it underscores the importance of high-quality data labeling and vision model training as AI and ML move deeper into action in Defense and Intelligence.
“By teaming with Clarifai, we aim to solve the most challenging problems of computer vision models and to do it with the efficiency and scale that the Defense and Intelligence industries need. Both Clarifai and Crimson Phoenix have a demonstrated history of delivering mission-critical support to the military, providing the security and resilience our clients demand. With extensive experience in deploying both edge and cloud solutions, we ensure robust, scalable capabilities tailored to the unique needs of our clients,” said Brad Becker, EVP of Crimson Phoenix.
Crimson Phoenix stands at the forefront of computer vision technology in the military, defense, and national security sectors. With a multidisciplinary team of data scientists, engineers, and visualization experts, Crimson Phoenix collaborates with the Defense and Intelligence communities to design and deploy custom AI/ML solutions, optimizing business processes through advanced technologies like computer vision, machine learning pipelines, and data engineering. The company’s expertise spans object detection, action recognition, segmentation, data labeling and data visualization, delivering actionable insights for strategic decision-making.
About ClarifaiClarifai is a global leader in computer vision and pioneer in AI orchestration and development helping organizations, teams, and developers build, deploy, and operationalize AI at scale. Clarifai’s cutting-edge full-stack AI platform leverages today’s modern AI technologies like Large Language Models (LLMs), Large Vision Models (LVMs), and Retrieval Augmented Generation (RAG), data labeling, inference, and more. Founded in 2013, Clarifai is available in cloud, on-premises, or hybrid environments and has been used to build more than 1.5 million AI models with more than 400,000 users in 170 countries. Learn more at www.clarifai.com.
For more information or media requests, contact: [email protected]
About Crimson PhoenixCrimson Phoenix is a premier provider of data-enabled solutions for the Intelligence and Defense Communities. Utilizing the power of AI, ML, and advanced digital technologies, Crimson Phoenix delivers comprehensive services designed to provide a competitive edge across critical domains. For more information about Crimson Phoenix and its innovative solutions, please visit: www.crimsonphoenix.com.
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Artificial Intelligence
Aghanim and Sift Partner to Prevent Fraud in Direct-to-Consumer Mobile Gaming E-commerce
LOS ANGELES, Oct. 9, 2024 /PRNewswire/ — Aghanim, a mobile gaming fintech company founded by Harvard Business School alumni with over 40 years of combined expertise in video games and fintech, today announces a strategic partnership with Sift, the AI-powered fraud decisioning platform securing digital trust for leading global businesses. The combination of AI-driven insights across 1 trillion events and identity signals combined with Aghanim’s decades of expertise in gaming represents an unprecedented anti-fraud solution for mobile games.
Founded in June 2023, Aghanim empowers mobile game publishers to unlock new revenue streams through direct-to-consumer strategies. Its web-based game hubs also drive value for players with exciting competitive, social, and metagame features and rewards in addition to targeted offers. By helping game developers and publishers increase their net revenue by up to 200%, Aghanim enables them to invest additional capital into vital areas such as user acquisition.
Sift is an AI-powered fraud decisioning platform that helps digital businesses optimize their risk-reward equation with advanced machine learning, providing multi-layered fraud prevention for over 700 global businesses. With Sift’s support, Aghanim customers are able to detect fraud, secure every transaction, and improve conversion & engagement.
Constantin Andry, Co-founder and Co-CEO of Aghanim commented:
“Aghanim offers mobile game studios a fully self-managed end-to-end solution, which includes web-based game hub creation and management, integrated e-commerce, live ops automation, community engagement, and a payments platform as a suite of interoperable tools. This partnership with Sift enables us to ensure game developers, publishers, and their players are as protected as possible via secure, compliant, direct-to-consumer web-based solutions.”
Armen Najarian, Chief Marketing Officer at Sift said:
“Aghanim is an exciting player in the fintech world, and one with the potential to solve some of the inherent challenges in mobile gaming. We look forward to supporting their mission as the leading direct-to-consumer platform for mobile games by preventing fraud and creating a trusted, safe environment for their users.”
Aghanim soft-launched in early 2024 with funding from Bessemer Venture Partners, Point72 Ventures, QED Investors, and the A16Z GAMES SPEEDRUN. The company is rapidly expanding its reach and partnering with major mobile games companies to transform how mobile games are monetized and distributed through its proprietary Game Hub Builder and LiveOps Builder technologies.
CLICK HERE FOR VISUAL ASSETS
For more information, please visit Aghanim’s website.
Press Contact: [email protected]
Follow Aghanim on LinkedIn, Twitter, Facebook, and Instagram for updates.
About Aghanim:Aghanim, founded in June 2023, is a mobile gaming fintech company specializing in integrated commerce, liveops automation, community engagement, and payments. With a mission to revolutionize how mobile games are monetized and distributed, Aghanim’s web-based game hubs empower developers to go direct-to-consumer and unlock new revenue streams.
About SiftSift is the AI-powered fraud platform securing digital trust for leading global businesses. Our deep investments in machine learning and user identity, a data network scoring 1 trillion events per year, and a commitment to long-term customer success empower more than 700 customers to grow fearlessly. Brands including DoorDash, Yelp, and Poshmark rely on Sift to unlock growth and deliver seamless consumer experiences. Visit us at sift.com and follow us on LinkedIn.
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View original content:https://www.prnewswire.co.uk/news-releases/aghanim-and-sift-partner-to-prevent-fraud-in-direct-to-consumer-mobile-gaming-e-commerce-302271133.html
Artificial Intelligence
ETQ Launches AI-Based Predictive Quality Analytics Solution
ETQ Reliance eQMS Brings Actionable AI Insights for Early Detection and Resolution of Manufacturing Production Issues with a partnership with Acerta Analytics
BURLINGTON, Mass., Oct. 9, 2024 /PRNewswire/ — ETQ, part of Hexagon, today launched the ETQ Reliance® Predictive Quality Analytics solution, bringing a new level of artificial intelligence (AI)-driven analytics to its ETQ quality management system (QMS). The solution enables automated, early detection and proactive resolution to prevent manufacturing problems, limit production variation, speed decision making, deliver prescriptive solutions to supply chain issues and boost overall delivered quality.
By extending proactive quality management to the shop floor, organizations can boost quality, innovation across the product manufacturing process – enabling product optimizations and continuous improvement.
ETQ has partnered with Acerta Analytics, a developer of predictive quality analytics software for manufacturers, to integrate Acerta LinePulse, an AI and machine learning-based solution, with ETQ Reliance. The partnership will allow ETQ and Acerta customers to benefit from a predictive, closed loop quality system that marries real-time data analysis with advanced quality workflows.
“Today’s manufacturers worry about the performance of their plants, how to ensure operational efficiency, meet compliance requirements and manage risk, all while preserving innovation, ensuring on-time delivery of quality products to their customers,” said Vick Vaishnavi, CEO of ETQ. “Heavy on their minds is the possibility of product recalls. In fact, in a recent ETQ Pulse of Quality in Manufacturing survey 73% of respondents said they had a product recall in the last five years, and 48% said there have been more recalls than there were five years ago. The ETQ Reliance Predictive Quality solution combines AI technology and expert human knowledge to help identify production problems sooner and resolve them faster to avoid costly, brand-damaging recalls and other quality issues.”
“We’re pleased to be partnering with ETQ. Coupled with Acerta’s long-standing history of providing AI solutions to large automotive manufacturers, together we will now deliver insights to manufacturers that help them predict and resolve issues with real-time analysis of their shop-floor data, and expert feedback from ETQ Reliance users,” said Greta Cutulenco, Co-founder and CEO, Acerta Analytics. “Our combined solution helps manufacturers work quickly and efficiently to prevent scrap and rework and manage critical quality events.”
ETQ Reliance Quality Analytics
The ETQ Reliance Quality Analytics solution is an AI-driven Predictive Quality Analytics (PQA) application that ingests data from the shop floor via the Acerta LinePulse application. Acerta LinePulse predicts the likelihood of upcoming defects and integrates with the ETQ Reliance QMS to accelerate root cause analysis and speed-to-resolution while also improving predictive algorithms. This early detection and intervention can make a drastic positive impact on critical production KPIs such as scrap and rework, “first time right,” stable production and others.
The solution brings actionable AI to the shop floor by sending early warning alerts when a manufacturing process is at risk of producing defects. These alerts create a quality event in ETQ Reliance so that users can investigate the nature of the alert, determine the resolution to resolve the issue, and return feedback to Acerta LinePulse. By keeping humans in the loop with AI-driven predictive capabilities, customers can reduce field service costs, customer complaints, safety incidents, warranty claims and recalls downstream, while helping product designers, manufacturing engineers and supply chain managers ensure better inputs to the manufacturing process. By reducing the time, it takes to address manufacturing challenges, companies can reduce the number of potential escapes and limit their recall exposure.
The feedback sent from ETQ Reliance to Acerta LinePulse causes the predictive algorithms to continuously learn, and become more effective, accurate over time. Consistently improving predictions using real-time data help make better decisions faster.
Acerta LinePulse brings additional features that improve shop-floor decision making, such as automated root cause analysis and advanced capability monitoring.
Key Features/Benefits:
Manufacturing-specific data ingestion: Collect, analyze and visualize manufacturing data from different sources all in one place, including process data from sensors, environmental data from inside the plant, test results, and quality inspection data.Advanced data analysis: Designed for quality engineers and line operators; no in-house data science expertise is required.Predictive monitoring and alerts: Get alerted about potential quality issues before they occur from the areas of production that make the most impact.Automated root cause analysis: Generate a prioritized list of the most influential signals related to a failed quality inspection or test within minutes.The ETQ Reliance Quality Analytics solution is available immediately and will be sold direct by ETQ, Acerta and other ETQ resellers to both new and existing ETQ Reliance NXG customers.
ETQ Reliance NXG is a comprehensive, cloud-native, analytics-driven quality management system for quality-centric customers in manufacturing, life sciences, electronics, food and beverage, automotive, aerospace, and other industries. The solution is a fully multi-tenant SaaS offering that delivers the limitless power of cloud-native technology to accelerate and elevate quality processes and reduce risk for companies.
Hexagon MI’s Sixth Sense Program and Acerta
Acerta is a member of Hexagon’s Sixth Sense accelerator program launched in January 2022 to assist manufacturing companies by providing them with access to Hexagon’s extensive resources. The program is an open innovation platform that connects companies to address global challenges through manufacturing innovation.
About Acerta
Forged from industrial experience and driven by data science, Acerta helps discrete manufacturers get value out of their manufacturing data. Its ML/AI-powered software enables companies to make the right decisions fast, optimize production, and reduce the costs of poor quality. Acerta translates complex product data into actionable insights.
About ETQ
ETQ, part of Hexagon, is a leading provider of integrated quality management, health, safety, and environmental solutions for manufacturers. Firms around the world rely on ETQ to ensure optimal quality at scale, reduce costs and improve the velocity of data-driven decisions. Learn more at etq.com.
Hexagon is a global leader in digital reality solutions, combining sensor, software and autonomous technologies. Hexagon (Nasdaq Stockholm: HEXA B) has approximately 24,000 employees in 50 countries and net sales of approximately 5.2bn EUR. Learn more at hexagon.com and follow us @HexagonAB
Click here to download a copy of ETQ’s recent industry report: “The Pulse of Quality in Manufacturing 2024.”
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View original content:https://www.prnewswire.co.uk/news-releases/etq-launches-ai-based-predictive-quality-analytics-solution-302270637.html
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