Check Point Software Technologies Ltd. Files 20-F Annual Report

TL;DR

<b>Check Point Software Technologies Ltd. filed its 20-F annual report for FY2023, detailing financial positions and product revenue breakdowns.</b>

AI Summary

CHECK POINT SOFTWARE TECHNOLOGIES LTD (CHKP) filed a Foreign Annual Report (20-F) with the SEC on April 2, 2024. Filed 20-F annual report for the fiscal year ending December 31, 2023. Unrecognized tax benefit was $17.0 million as of December 31, 2023, up from $16.6 million in 2022. Products and licenses revenue includes Endpoint security, Mobile security, and Security management, each less than 10% of total. Fair value of assets measured using Level 1 inputs includes Cash, Money Market Funds, and Bank Time Deposits as of December 31, 2023. Fair value of assets measured using Level 2 inputs includes U.S. Treasury and Government, Foreign Government Debt Securities, and Corporate Debt Securities as of December 31, 2023.

Why It Matters

For investors and stakeholders tracking CHECK POINT SOFTWARE TECHNOLOGIES LTD, this filing contains several important signals. The filing provides a comprehensive overview of the company's financial health and operational segments for the fiscal year 2023, crucial for investors assessing performance and future outlook. Specific details on unrecognized tax benefits and the fair value measurements of various financial instruments offer insights into the company's financial risk management and asset valuation strategies.

Risk Assessment

Risk Level: low — CHECK POINT SOFTWARE TECHNOLOGIES LTD shows low risk based on this filing. The filing is a standard annual report (20-F) and does not contain immediate negative news or significant changes, indicating a stable operational status.

Analyst Insight

Monitor future filings for updates on product revenue growth and any changes in unrecognized tax benefits or asset valuations.

Revenue Breakdown

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-04-02 — Filing Date (Filed as of date)
• $17.0 — Unrecognized Tax Benefit (2023) (As of December 31, 2023)
• $16.6 — Unrecognized Tax Benefit (2022) (As of December 31, 2022)

Key Players & Entities

• CHECK POINT SOFTWARE TECHNOLOGIES LTD (company) — Filer name
• 2023-12-31 (date) — Conformed period of report
• 2024-04-02 (date) — Filed as of date
• $17.0 (dollar_amount) — Unrecognized tax benefit as of December 31, 2023
• $16.6 (dollar_amount) — Unrecognized tax benefit as of December 31, 2022
• Endpoint security (product) — Product category
• Mobile security (product) — Product category
• Security management (product) — Product category

FAQ

Industry Context

Check Point Software Technologies Ltd. operates in the cybersecurity industry, providing a range of security solutions to protect against threats.

Regulatory Implications

The filing is a Form 20-F, which is an annual report required by the U.S. Securities and Exchange Commission for foreign private issuers.

What Investors Should Do

1. Review the full 20-F filing for detailed financial statements and management discussion.
2. Analyze the product revenue breakdown for insights into growth drivers and segment performance.
3. Track the trend of unrecognized tax benefits for potential future financial implications.

Year-Over-Year Comparison

This filing is the 20-F annual report for the fiscal year ending December 31, 2023, providing updated financial and operational information compared to previous periods.

Filing Documents

• zk2431186.htm (20-F) — 3074KB
• exhibit_2-1.htm (EX-2.1) — 44KB
• exhibit_4-2.htm (EX-4.2) — 120KB
• exhibit_4-3.htm (EX-4.3) — 97KB
• exhibit_4-9.htm (EX-4.9) — 36KB
• exhibit_12-1.htm (EX-12.1) — 13KB
• exhibit_12-2.htm (EX-12.2) — 13KB
• exhibit_13-1.htm (EX-13.1) — 5KB
• exhibit_13-2.htm (EX-13.2) — 5KB
• exhibit_15.htm (EX-15) — 6KB
• exhibit_97-1.htm (EX-97.1) — 32KB
• chkp_img01.jpg (GRAPHIC) — 254KB
• chkp_img02.jpg (GRAPHIC) — 247KB
• 0001178913-24-001196.txt (&nbsp;) — 14229KB
• chkp-20231231.xsd (EX-101.SCH) — 65KB
• chkp-20231231_cal.xml (EX-101.CAL) — 70KB
• chkp-20231231_def.xml (EX-101.DEF) — 271KB
• chkp-20231231_lab.xml (EX-101.LAB) — 882KB
• chkp-20231231_pre.xml (EX-101.PRE) — 437KB
• zk2431186_htm.xml (XML) — 2532KB

Item 18

Item 17 Item 18 If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): Yes No Auditor Firm Id: 1281 Auditor Name: Kost Forer Gabbay & Kasierer, a member of Ernst & Young Global Auditor Location: Tel-Aviv, Israel Currency of Presentation and Certain Defined Terms In this Annual Report on Form 20-F, or the Annual Report, references to "U.S." or "United States" are to the United States of America, its territories and possessions; and references to "Israel" are to the State of Israel. References to "$", "dollar" or "U.S. dollar" are to the legal currency of the United States of America; references to "NIS" or "Israeli shekel" are to the legal currency of Israel and references to "Euro" are to the legal currency of the European Union. Our financial statements are presented in U.S. dollars and are prepared in conformity with accounting principles generally accepted in the United States of America, or U.S. GAAP. All references to "we," "us," "our" or "Check Point" shall mean Check Point Software Technologies Ltd., and, unless specifically indicated otherwise or the context indicates otherwise, our consolidated subsidiaries.

Forward-Looking Statements

Forward-Looking Statements In addition to historical fact, this Annual Report contains forward-looking of the Securities Exchange Act of 1934, as amended, or the Exchange Act. These forward-looking statements are subject to risks and uncertainties, and include information about possible or assumed future results of our business, financial condition, results of operations, liquidity, plans and objectives. In some cases you can identify forward-looking statements by terminology such as "may," "will," "could," "would," "should," "expects," "plans," "anticipates," "believes," "intends," "estimates," "predicts," "potential," or "continue" or the negative of these terms or other comparable terminology. These forward-looking statements include, but are not limited to, statements concerning the following: our expectations for our business, trends related to our business and the markets in which we operate and into which we sell products; uncertain macro-economic and industry trends (such as inflation and fluctuations in supply chains), which may impact demand and supply of our products; the effects of increased competition in our market; our ability to timely and effectively scale and adapt our existing technology and infrastructure to meet current and future market demands; the effects on our business of global pandemics, such as COVID-19; our ability to develop or acquire new and more technologically advanced products, and to successfully commercialize these products; our ability to protect our proprietary technology and intellectual property; our ability to protect our information technology systems, networks and products and services from various security threats; our ability to increase adoption of our products and to maintain or increase our market share; our ability to maintain our growth; future amounts and sources of our revenu

Quantitative and Qualitative Disclosures

Quantitative and Qualitative Disclosures about Market Risk 63 Item 12.

Description of Securities Other than Equity

Description of Securities Other than Equity Securities 64 PART II Item 13. Defaults, Dividend Arrearages and Delinquencies 64 Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds 64 Item 15.

Controls and Procedures

Controls and Procedures 64 Item 16A. Audit Committee Financial Expert 65 Item 16B. Code of Ethics 65 Item 16C. Principal Accountant Fees and Services 66 Item 16D. Exemptions from the Listing Standards for Audit Committees 66 Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers 66 Item 16F. Change in Registrant's Certifying Accountant 67 Item 16G. Corporate Governance 67 Item 16H. Mine Safety Disclosure 68 Item 16I. Disclosure Regarding Foreign Jurisdictions that Prevent Inspection 68 Item 16J. Insider Trading Policies 68 Item 16K. Cybersecurity 68 PART III Item 17.

Financial Statements

Financial Statements 70 Item 18.

Financial Statements

Financial Statements 70 Item 19. Exhibits 70 2 PART I

IDENTITY OF DIRECTORS,

ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS Not applicable.

OFFER STATISTICS

ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE Not applicable.

KEY INFORMATION

ITEM 3. KEY INFORMATION

Risk Factors

Risk Factors An investment in our ordinary shares involves a high degree of risk. The risks and uncertainties described below are not the only ones we face. Additional risks and uncertainties that we are unaware of, or that we currently believe are not material, also may become important factors that affect us. If any of the following risks materialize, our business, financial condition, results of operations and prospects could be materially harmed. In that event, the market price of our ordinary shares could decline and you could lose part or all of your investment. Risk Factors Summary The following is a summary of the principal risks that could materially and adversely affect our business, financial condition, operating results and growth prospects. Risks Related to Our Business and Our Market If the market for information and network security solutions does not continue to grow, our business will be adversely affected. We may not be able to successfully compete, which could adversely affect our business and results of operations. If we fail to enhance our existing products, develop or acquire new and more technologically advanced products, or fail to successfully commercialize these products, our business and results of operations will suffer. We may need to change our pricing models to compete successfully. Our business, results of operations and financial condition are subject to the risks of earthquakes, fire, floods, pandemics such as COVID 19 pandemic and other natural events, as well as manmade problems such as power disruptions or terrorism or war, such as the war and hostilities between Israel and Hamas and Israel and Hezbollah have been and may continue to be adversely affected. Prolonged economic uncertainties or downturns, globally or in certain regions or industries, could materially adversely affect our business. If our products fail to protect against attacks and our customers experience security breaches, our reputation and business co

View Full Filing

View this 20-F filing on SEC EDGAR