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SAN CARLOS, Calif., Aug. 01, 2022 (GLOBE NEWSWIRE) -- Check Point&circledR; Software Technologies Ltd. (NASDAQ: CHKP), today announced its financial results for the second quarter ended June 30, 2022.
Second Quarter 2022:
“We are pleased with our second quarter results. Total revenues achieved growth of 9 percent - more than double the rate of a year ago. This was driven by strength in products and subscriptions revenues which generated a strong increase of 12 and 14 percent respectively,&CloseCurlyDoubleQuote; said Gil Shwed, Founder and CEO of Check Point Software Technologies. “Over the past quarter, cyber-attacks have increased by 32 percent while advanced attacks like ransomware have grown by 59 percent, underscoring why cyber-security is so critical to keep our world going. Our strategic vision of a consolidated prevention-first security architecture is more relevant than ever to combat today&CloseCurlyQuote;s cyber challenges.&CloseCurlyDoubleQuote;
Financial Highlights for the Second Quarter of 2022:
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&CloseCurlyDoubleQuote; and “Reconciliation of GAAP to Non-GAAP Financial Information.&CloseCurlyDoubleQuote;
Conference Call and Webcast Information
Check Point will host a conference call with the investment community on August 1, 2022, 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:
Members of Check Point's management team anticipate attending these conferences and events to discuss the latest company strategies and initiatives. Check Point&CloseCurlyQuote;s conference presentations if applicable will be available via webcast on the company's web site. To hear these presentations and access 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 corporate enterprises and governments 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&CloseCurlyQuote;s most comprehensive, intuitive unified security management. Check Point protects over 100,000 organizations of all sizes.
Follow Check Point via:
©2022 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, our beliefs regarding our customers&CloseCurlyQuote; adoption of our products and solutions, and our participation in investor conferences during the third quarter of 2022. Our expectations and beliefs regarding these matters may not materialize, and genuine results or events in the future are subject to risks and uncertainties that could cause genuine 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 products and solutions and new products and 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 14, 2022. 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&CloseCurlyQuote;s management believes the non-GAAP financial information provided in this release is useful to investors&CloseCurlyQuote; understanding and assessment of Check Point&CloseCurlyQuote;s ongoing core operations and prospects for the future. Historically, Check Point has also publicly presented these supplemental non-GAAP financial measures to assist the investment community to see the Company “through the eyes of management,&CloseCurlyDoubleQuote; 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.
|INVESTOR CONTACT:||MEDIA CONTACT:|
|Kip E. Meintzer||Gil Messing|
|Check Point Software Technologies||Check Point Software Technologies|
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,|
|Products and licenses||$||133.2||$||119.1||$||249.1||$||228.4|
|Total revenues from products and security subscriptions||343.1||302.8||660.6||589.5
|Software updates and maintenance||228.0||223.3||453.2||444.2|
|Cost of products and licenses||36.7||23.2||68.1||44.8|
|Cost of security subscriptions||9.5||8.7||19.5||16.7|
|Total cost of products and security subscriptions||46.2||31.9||87.6||61.5|
|Cost of Software updates and maintenance||25.7||25.6||51.2||50.9|
|Amortization of technology||2.9||1.7||6.1||3.4|
|Total cost of revenues||74.8||59.2||144.9||115.8|
|Research and development||86.3||67.5||172.8||135.9|
|Selling and marketing||170.6||148.9||329.2||288.9|
|General and administrative||30.6||28.2||57.9||56.0|
|Total operating expenses||362.3||303.8||704.8||596.6|
|Financial income, net||9.7||10.4||16.8||23.0|
|Income before taxes on income||218.5||232.7||425.8||460.1|
|Taxes on income||44.9||46.7||82.8||91.2|
|Basic earnings per share||$||1.37||$||1.39||$||2.69||$||2.74|
|Number of shares used in computing basic earnings per share||126.5||133.7||127.4||134.8|
|Diluted earnings per share||$||1.36||$||1.38||$||2.66||$||2.71|
|Number of shares used in computing diluted earnings per share||127.7||134.8||128.8||136.1|
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,|
|Non-GAAP operating income||248.7||257.1||487.3||503.4|
|Non-GAAP net income||209.3||217.0||412.9||428.2|
|Diluted Non-GAAP Earnings per share||$||1.64||$||1.61||$||3.21||$||3.15|
|Number of shares used in computing diluted Non-GAAP earnings per share||127.7||134.8||128.8||136.1|
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,|
|GAAP operating income||$||208.8||$||222.3||$||409.0||$||437.1|
|Stock-based compensation (1)||33.7||29.9||66.1||56.5|
|Amortization of intangible assets and acquisition related expenses (2)||6.2||4.9||12.2||9.8|
|Non-GAAP operating income||$||248.7||$||257.1||$||487.3||$||503.4|
|GAAP net income||$||173.6||$||186.0||$||343.0||$||368.9|
|Stock-based compensation (1)||33.7||29.9||66.1||56.5|
|Amortization of intangible assets and acquisition related expenses (2)||6.2||4.9||12.2||9.8|
|Taxes on the above items (3)||(4.2||)||(3.8||)||(8.4||)||(7.0||)|
|Non-GAAP net income||$||209.3||$||217.0||$||412.9||$||428.2|
|Diluted GAAP Earnings per share||$||1.36||$||1.38||$||2.66||$||2.71|
|Stock-based compensation (1)||0.26||0.22||0.51||0.42|
|Amortization of intangible assets and acquisition related expenses (2)||0.05||0.04||0.10||0.07|
|Taxes on the above items (3)||(0.03||)||(0.03||)||(0.06||)||(0.05||)|
|Diluted Non-GAAP Earnings per share||$||1.64||$||1.61||$||3.21||$||3.15|
|Number of shares used in computing diluted Non-GAAP earnings per share||127.7||134.8||128.8||136.1|
|(1) Stock-based compensation:|
|Cost of products and licenses||$||0.1||$||0.1||$||0.2||$||0.2|
|Cost of software updates and maintenance||1.3||1.1||2.3||2.0|
|Research and development||10.3||7.2||20.8||13.7|
|Selling and marketing||10.3||10.5||21.4||18.8|
|General and administrative||11.7||11.0||21.4||21.8|
|(2) Amortization of intangible assets and acquisition related expenses:|
|Amortization of technology-cost of revenues||2.9||1.7||6.1||3.4|
|Research and development||2.2||1.3||4.2||2.6|
|Selling and marketing||1.1||1.9||1.9||3.8|
|(3) Taxes on the above items||(4.2||)||(3.8||)||(8.4||)||(7.0||)|
CHECK POINT SOFTWARE TECHNOLOGIES LTD.
CONDENSED CONSOLIDATED BALANCE SHEET DATA
(Unaudited, in millions)
|June 30,||December 31,|
|Cash and cash equivalents||$||242.8||$||271.9|
|Marketable securities and short-term deposits||1,428.8||1,421.8|
|Trade receivables, net||344.0||597.8|
|Prepaid expenses and other current assets||55.0||46.4|
|Total current assets||2,070.6||2,337.9|
|Property and equipment, net||84.3||83.4|
|Deferred tax asset, net||70.2||51.7|
|Goodwill and other intangible assets, net||1,302.1||1,257.2|
|Total long-term assets||3,542.5||3,562.3|
|Trade payables and other accrued liabilities||457.3||454.7|
|Total current liabilities||1,668.0||1,712.1|
|Long-term deferred revenues||455.2||449.7|
|Income tax accrual||440.2||454.9|
|Other long-term liabilities||25.2||26.4|
|Additional paid-in capital||2,405.6||2,276.7|
|Treasury shares at cost||(11,168.0||)||(10,550.7||)|
|Accumulated other comprehensive gain||(87.8||)||(0.6||)|
|Total shareholders&CloseCurlyQuote; equity||3,024.5||3,257.1|
|Total liabilities and shareholders&CloseCurlyQuote; equity||$||5,613.1||$||5,900.2|
|Total cash and cash equivalents, marketable securities and short-term deposits||$||3,676.1||$||3,783.4|
CHECK POINT SOFTWARE TECHNOLOGIES LTD.
SELECTED CONSOLIDATED CASH FLOW DATA
(Unaudited, in millions)
|Three Months Ended||Six Months Ended|
|June 30,||June 30,|
|Cash flow from operating activities:|
|Adjustments to reconcile net income to net cash provided by operating activities:|
|Depreciation of property and equipment||5.5||5.5||10.5||10.2|
|Amortization of intangible assets||3.4||2.1||6.7||4.2|
|Realized gain on marketable securities||-||(0.2||)||-||(1.5||)|
|Decrease (increase) in trade and other receivables, net||(6.5||)||(24.9||)||246.9||175.3|
|Increase (decrease) in deferred revenues, trade payables and other accrued liabilities||1.0||63.3||(65.8||)||24.0|
|Deferred income taxes, net||1.0||1.9||2.3||0.5|
|Net cash provided by operating activities||211.7||263.6||609.7||638.1|
|Cash flow from investing activities:|
|Payment in conjunction with acquisitions, net of acquired cash||-||-||(48.3||)||-|
|Investment in property and equipment||(6.7||)||(3.3||)||(11.4||)||(7.1||)|
|Net cash used in investing activities||(6.7||)||(3.3||)||(59.7||)||(7.1||)|
|Cash flow from financing activities:|
|Proceeds from issuance of shares upon exercise of options||28.5||14.4||95.4||47.5|
|Purchase of treasury shares||(325.0||)||(324.7||)||(650.0||)||(649.6||)|
|Payments related to shares withheld for taxes||(5.8||)||(4.9||)||(6.5||)||(5.8||)|
|Net cash used in financing activities||(302.3||)||(315.2||)||(561.1||)||(607.9||)|
|Unrealized loss on marketable securities, net||(26.9||)||(6.0||)||(96.2||)||(20.7||)|
|Increase (decrease) in cash and cash equivalents, marketable securities and short term deposits||(124.2||)||(60.9||)||(107.3||)||2.4|
|Cash and cash equivalents, marketable securities and short term deposits at the beginning of the period||3,800.3||4,062.9||3,783.4||3,999.6|
|Cash and cash equivalents, marketable securities and short term deposits at the end of the period||$||3,676.1||$||4,002.0||$||3,676.1||$||4,002.0|
MacPherson has devoted his laboratory to rectifying the dearth of small cell lung cancer research and lack of treatment advancements. After Congress passed the 2013 Recalcitrant Cancer Act, which mandated more research focus on treatment-resistant cancers like SCLC, the NCI put together an SCLC consortium, which MacPherson joined.
He and his team used SCLC cells floating in patients’ blood to set up patient-derived xenografts, or PDX, models in which human tumor tissue grows in mice. These allow the group to test potential therapies on human SCLC tissue growing in an environment that more closely mimics a patient than a lab dish ever could. MacPherson’s work on SCLC became one of the four clinically focused lung cancer research projects in the Hutch’s NCI-funded Specialized Program of Research Excellence in lung cancer. The SPORE initiative is designed to accelerate the timeline from basic science breakthrough to clinical advancement.
As scientists put more effort into untangling the biology of SCLC, it became clear that there are several “flavors” of the disease, MacPherson said.
Different tumors carry different key mutations. And the pattern of genes that are turned on or off also varies between tumors. Investigators outlined a highly neuroendocrine, or NE, SCLC type, which has stronger neural and hormonal features than other tumor types, and an inflamed type, which shows signs of heightened immune activity. These types were also linked to prognosis: NE tumors tend to be more aggressive, while inflamed tumors often have a better prognosis.
MacPherson turned his attention to molecules that regulate DNA packaging, which can change which genes are on or off and affect tumor behavior. One regulator of DNA packaging is a molecule called LSD1. In a prior study, MacPherson and his team had tested an LSD1 inhibitor against SCLC patient-derived tumor tissue growing in immunocompromised mice, a PDX model derived from a chemo-resistant tumor, which melted away. Though other models didn’t respond as dramatically, the investigators saw that the LSD1 inhibitor suppressed NE features and turned up expression of a gene called Notch in every PDX model they tested it against.
At the time, other researchers began reporting on characteristics of SCLC tumors that respond to immunotherapy. They reported reduced NE features and higher levels of Notch.
“And that’s exactly what LSD1 inhibition was doing [in the lab],” MacPherson said.
This prompted the researchers to test whether they could make SCLC tumors sensitive to immunotherapy by using an LSD1 inhibitor to ramp down their NE qualities and ramp up Notch.
This time, the researchers used mice with fully functional immune systems and mouse SCLC tumors engineered to better simulate human SCLC features. (Mouse immune systems will reject human tissue, making it impossible to create a human PDX model in standard immunocompetent mice.)
They then tested whether an LSD1 inhibitor called bomedemstat, provided by Imago Biosciences, improved responses to an immune checkpoint inhibitor. Immune checkpoint inhibitors work by blocking molecular brakes that keep tumor-attacking immune cells called T cells in check. Treatment with the checkpoint inhibitor did not reduce tumor growth compared to untreated tumors. Bomedemstat on its own reduced tumor size a little. Together, bomedemstat and the immunotherapy drug kept tumor growth strongly in check.
The team also found that significantly more immune cells made their way into tumors in doubly treated mice than in mice left untreated or given either treatment alone.
Additionally, the researchers revealed a key cellular change that helped explain bomedemstat’s immune-amplifying capabilities. They found that bomedemstat treatment boosted levels of a molecule that T cells can use to “see” the mutations lurking within tumor cells. Tumors that lack this molecule essentially hide from T cells, so turning this molecule back on could keep small cell tumors from flying under the immune system’s radar.
MacPherson noted that a study from another group in New York, published last month, found similar results.
The laboratory results were so exciting — and meshed so well with clinical findings — that Hiatt and MacPherson have already opened a clinical trial in collaboration with Dr. Rafael Santana-Davila at the University of Washington. Imago Bioscience will provide bomedemstat to patients but is not funding or overseeing the trial. Two participants have enrolled so far.
In the current standard of care, patients with SCLC receive treatment in two phases: an initial phase of chemotherapy plus an immune checkpoint inhibitor, followed by a second phase of checkpoint inhibitor alone to maintain tumor regression. The trial will add bomedemstat to the maintenance phase to see if this drug can extend the length of time before a patient’s disease progresses or recurs. The scientists will compare data from patients on the trial to historical data to measure bomedemstat’s effect.
The trial is also designed to help scientists learn more about biological features of SCLC tumors that correlate with how well the drug combination works.
“We always want to do a better job of identifying who benefits the most from standard treatments or from new treatments,” Hiatt said. “But probably even more importantly, [we need to identify] who's not going to benefit at all and would need a totally different strategy.”
So the trial team will also monitor cancer DNA found in patients’ blood (also known as a liquid biopsy) to see if they can uncover molecular markers that distinguish tumors that respond from those that don’t (and perhaps also hint at the molecular basis for a response). With Hutch colleague Dr. Gavin Ha, the team is developing a test that can look at patterns in DNA packaging proteins to glean information about the molecular state of the tumors.
“There’s also a lot to understand about how LSD1 inhibition is augmenting the immune response,” MacPherson said. “The next steps are to tease out its impact on the immune system more broadly and detail the molecular mechanisms involved.”
The team’s clinical ties strengthen their laboratory work, they said. His clinical experience informs what questions he tackles and how he designs his experiments, Hiatt said.
“It’s very rewarding to go back to the lab to try to come up with new strategies that could theoretically be helpful for these patients,” he said.
The laboratory studies were supported by funding from the Fred Hutch Lung SPORE. The ongoing clinical trial is funded by Fred Hutchinson Cancer Center.
Report Highlights:. • CD47 Inhibitor Drug Market Trends & Future Prospects. • Insight On More Than 50 CD47 Inhibitors Drugs In Clinical Trials. • Orphan, Fast Track, Breakthrough Therapy Designation Insight.
New York, Aug. 03, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Global CD47 Inhibitor Drug Clinical Trials Insight 2028" - https://www.reportlinker.com/p06311956/?utm_source=GNW
• Insight On CD47 Inhibitors Drugs Biomarkers Sourced During Clinical Trials
• CD47 Inhibitors Drug Clinical Trials Insight By Company, Indication & Phase
• CD47 Inhibitors Drug Clinical Trials Insight As Mono & Combination Therapy
• Global CD47 Inhibitor Drug Market Dynamics
Immunotherapy particularly with immune checkpoint inhibitor has shown to transform the global cancer therapeutics market. However, despite these huge advancements in the field of cancer therapeutics, the majority of patients does not respond to or develop resistance to immunotherapy, highlighting the need for additional approaches to expand cancer immunotherapy. In last few years, technological advancements have enabled the identification of various other receptors which can be of therapeutic potential. Recently, CD47 has gained major focus of researchers as therapeutic potential target for drug development.
Till date, no CD47 targeting antibody has gained market authorization. However, the pipeline is highly crowded indicating encouraging role of CD47 targeting therapies in the management of cancer. Magrolimab developed by GlaxoSmithKline is one of the most promising CD47 targeting antibodies in clinical development. Currently, the company is evaluating the drug in phase-III clinical trial accessing the efficacy and safety of Magrolimab in combination with azacitidine for the management of acute myeloid leukemia and myelodysplastic syndrome. The drug has received fast track designation from US FDA and is expected to enter the market by 2024.
Apart from this, several other pharmaceutical giants have developed a robust clinical pipeline of the CD47 targeting therapies which are being evaluated in various phase-I/II clinical trials. The companies have also adopted strategic alliances such as collaboration, partnership, or acquisitions to maintain their competitive edge in the market. For instance, AbbVie entered into collaboration with I-Mab for the development and commercialization of lemzoparlimab (also known as TJC4), an innovative anti-CD47 monoclonal antibody internally discovered and developed by I-Mab for the treatment of multiple cancers. In addition, the two partners have the potential to expand the collaboration to additional transformative therapies.
To further enhance the therapeutic potential of CD47 targeting therapies, researchers have also initiated clinical trials evaluating their role in combination therapies. For instance, Arch Oncology and Merck are currently conducting phase-I/II clinical trial to evaluate AO-176, the Company’s novel anti-CD47 antibody in combination with Keytruda for the treatment of patients with select solid tumors including relapsed, platinum-resistant ovarian cancer, endometrial cancer, and gastroesophageal cancer. Another, ALX Oncology in collaboration with Eli Lilly to evaluate the combination of ALX148, a next generation CD47 blocker and Cyramza for the treatment of patients with HER2-positive gastric cancer or gastroesophageal junction cancer. It is suggested that combination therapies will dominate the global market owing to their enhanced efficacy and specificity towards the cancer cells.
US & Chinese pharmaceutical firms are currently dominating the CD47 inhibitors drugs R&D landscape driven by encouraging clinical pipeline, increasing cancer research activities to find innovative therapies, and favorable government policy framework. For instance in 2022, US FDA has granted orphan drug designation to AO-176 for the management of relapsed or refractory multiple myeloma. AO-173 is investigational CD47 targeting monoclonal antibody developed by Arch Oncology. Another, ALX Oncology has also received orphan drug designation for evorpacept for the treatment of patients with acute myeloid leukemia. The orphan drug designation is associated with incentives which favor the rapid approval of the drug in the region.
As per our report findings, the global CD47 market opportunity is expected to surpass US$ 2 Billion by 2028. This is mainly due to large number of clinical pipeline products which are expected to gain approval and their encouraging response in the management of cancer. Further, the huge investments by pharmaceutical giants and special designations also suggest the promising growth of the market.
Read the full report: https://www.reportlinker.com/p06311956/?utm_source=GNW
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Video of the scene -- whose related hashtag has been viewed over a billion times on China's Twitter-like platform Weibo -- shows a confrontation between the driver, identified by police as a 41-year-old woman surnamed Hao, her father and a local police officer, who stopped Hao at a security checkpoint because she did not have proper clearance.
In the video, shot in the northeastern city of Dandong, Hao has gotten out of her car and can be heard yelling -- with palpable angst -- that she already took a Covid-19 test, and that her housing community gave her permission to leave to go the hospital to pick up the medicine.
The police officer blocks her from re-entering the car and pushes her. She then falls to the ground and her father, aged 70, slaps the officer in the face.
Later in the video, the officer can be seen forcibly dragging Hao out of her car to the ground.
Hao's apparent transgression? Her health code was not green, but yellow -- a status that meant she was not cleared to travel within the city under local rules that rely on the codes, now ubiquitous in China, to control who can move where.
In a statement Wednesday, a day after the incident, local police said they had issued Hao a 10-day administrative detention for obstructing their work, while her father had received a "criminal compulsory measure" -- that could result in further charges, according to state media -- on suspicion of assaulting a police officer.
The two "broke through checkpoints" and were stopped "according to the law," the police statement said, adding that Hao had "refused to cooperate and abide by the epidemic prevention regulations."
In a separate statement the following day, the police said the results from Hao's test were not yet available, which is why her code was still yellow, and that her father had not taken the required test, according to state-run China News Weekly.
Hao also responded publicly after the incident, explaining in a widely shared social media video that she was driving to pick up a difficult-to-find medicine for her father, who was recovering from surgery and suffered from a form of neuralgia.
"With this kind of pain, he can't eat, he can't talk, he can't sleep," she said. "Who said a yellow code can't pass? If that's the case sick people can only wait there and die?"
CNN reached out but was unable to make contact with Hao.
But as video of the situation circulated in the following days, the police response struck a nerve with the Chinese public, many of whom are growing increasingly frustrated with the stringent rules that now dictate their freedom of movement amid the country's adherence to a "zero-Covid" strategy, in which eradicating infection is the top priority.
"This wave of public opinion has already risen, and normal people would for sure support the father and daughter," one user wrote on Weibo, in a comment that received tens of thousands of likes.
"If you don't allow the father and daughter to go out, you should help them solve the problem. If you can help them, they will not go out then. The policeman knew that they were going to get medicine. Why can't the police help them get medicines? Epidemic prevention is to serve and protect the people, not a reason to stop the people," the comment read.
The incident follows countless reports of people being unable to access proper or timely medical care due to heavy Covid-19 restrictions.
Those issues and frustrations with China's Covid-19 regulations have been most visible in Shanghai, where an earlier, two-month lockdown of 25 million people sparked small-scale protests and became a symbol of the lengths China's Communist Party will go to enforce its zero-Covid goal.
But the incident in Dandong last week has brought into focus the situation in smaller cities, particularly those near China's land borders. Such places often suffer more stringent measures as authorities fear they could be an entry point for imported virus cases, but may not be in the public eye.
Ruili, a city of some 200,000 in Yunnan province on the border with Myanmar, has undergone intermittent lockdowns since the pandemic began.
"In a place like Shanghai, you hear stories that show the rise in social discontent, the rise in socioeconomic cost, but in smaller cities like (Ruili) and Dandong, you won't get a sense of what's going on until such stories become headlines on social media," said Yanzhong Huang, a senior fellow for global health at the Council on Foreign Relations in New York.
In Dandong, which is separated from North Korea by the Yalu River, a string of outbreaks since late April has pushed authorities to keep the city of 2.2 million largely under strict lockdown.
A brief and limited easing in mid-May was swiftly replaced by a new round of lockdown days later.
That's left Dandong isolated from the rest of the country, with flights and trains suspended for months, according to state media.
And fears of the virus spreading from across the border after North Korea reported a major outbreak last month also had officials calling on residents living near the river to keep their windows closed on windy days and not to touch the water -- measures with little connection to scientific norms around Covid-19 prevention.
Since May 24, Dandong has seen 249 confirmed cases in its central urban area, authorities said Friday. China does not include asymptomatic cases in its confirmed case counts.
On the heels of the uproar over the situation between Hao, her father and the police, Dandong on Thursday announced an easing of certain restrictions in the city -- essentially removing obstacles on movement within the city for residents in areas not under special control.
But even with the easing, heavy restrictions remain. People can only leave the city under "special circumstances," and residents who can move freely still need a negative Covid-19 test taken within 48 hours. Schools remain online and public transport has not reopened, according to the government announcement.
At a press conference on Friday, city mayor Hao Jianjun said he was "soberly aware" of a gap between the city's epidemic prevention measures and residents' expectations.
"The initiatives we're taking are not precise enough, and the fatigue of running operations for a long time has caused some workers to tire and become lax and their methods are simple and crude," he said, pledging to take into account residents' opinions.
The easing in Dandong came as Shanghai's top official on Saturday declared that the city has "won the battle" against Covid-19 after the city reported zero local infections for the first time since February 23. Starting Wednesday, dine-in services would be reinstated in low-risk areas, roughly four weeks after the city's lockdown was lifted.
But even as cities tentatively lift some measures, it's clear that stringent testing requirements and health code checks are here to stay across the country for as long as the zero-Covid policy remains.
For the daughter in Dandong, Hao, who would not serve her 10-day detention currently due to the pandemic, according to state media, there remained a human side to be acknowledged amid the restrictions.
"Maybe you also have a sick family member, a child, or a senior at home. You might have encountered the same issue as I did when you were trying to seek medical help," she said in her online statement.
"People without empathy cannot understand what you felt at that time."
CNN's Beijing bureau contributed to this report.
Click right to view major scientific milestones of the Sloan Kettering Institute.
On August 8, 1945 — two days after the atomic bombing of Hiroshima — General Motors executive Alfred P. Sloan, Jr., and engineer Charles F. Kettering announce the creation of the Sloan-Kettering Institute for Cancer Research. The two founders seek to apply lessons gleaned from the automobile industry to cancer research.
As conceived by its founders, the Sloan Kettering Institute would be devoted solely to scientific research and would serve as both the physical and intellectual center of MSK. "The Sloan-Kettering Institute building will stand squarely in the middle of Memorial Cancer Center," Reginald Coombe, Memorial's president, said at the time.
Between 1946 and 1959, SKI investigators test thousands of natural and synthetic chemicals that they hope might selectively kill cancer cells, while leaving normal cells unharmed. This large-scale screening program brings to oncology some of the first effective chemotherapy drugs, including 6-mercaptopurine and the nitrogen mustards.
Virologist Charlotte Friend identifies a virus that causes leukemia in mice. Her work lends strong support to the controversial idea that viruses can cause cancer. The virus she discovered is now known as the Friend leukemia virus.
Immunologist Lloyd J. Old discovers that certain bacterial products can boost an animal’s innate immunity to cancer. Mice injected with a weakened version of a bacterium called Bacillus Calmette-Guerin (BCG) are resistant to the growth of implanted tumors. This discovery marks the beginning of modern tumor immunology.
Pioneering virologist Frank Horsfall becomes director of SKI. During his tenure, he encourages the study of virology and immunology.
Geneticist Edward (Ted) Boyse and immunologist Lloyd Old use antibodies to identify surface markers on different functional subsets of T cells. This paves the way for the cluster of differentiation, or CD, system for identifying T cells, such as CD4 and CD8.
In 1968, physician-scientist Robert Good performed the first successful bone marrow transplant from a sibling, permanently curing a boy born with severe combined immunodeficiency. At SKI, he continues to research and develop the science of bone marrow transplantation.
Virologist and geneticist Mathilde Krim was influential in promoting the study of interferons and cancer. She was a member of SKI from 1962 to 1985. In 1983, she cofounded the AIDS Medical Foundation (later the American Foundation for AIDS Research, or amfAR) to raise money and support AIDS research.
Lloyd Old, Elizabeth Carswell, and colleagues identify tumor necrosis factor (TNF), a powerful immune system molecule that causes tumors to hemorrhage and die. This work provides a clear link between the immune system and cancer.
Molecular biologist Robert Krug, who was a member of SKI from 1967 to 1989, discovers the process of "cap-snatching," by which the influenza virus tricks a host cell into making new proteins from its messenger RNA. A drug targeting this process (Xofluza) was approved in 2018 as a treatment for the flu.
Basic science at SKI grows dramatically under the leadership of Paul Marks, who became president of MSK in 1980. In his own research, Dr. Marks made important contributions to the early understanding of epigenetic changes in cells. The FDA-approved drug vorinostat (Zolinza) is based on his work.
Molecular biologist William Hayward, working with scientists at The Rockefeller University, discovers that mutations in a gene called MYC can cause cancer, pinpointing it as an oncogene.
Richard Rifkind, who had been a colleague of Paul Marks when they were at Columbia University, becomes the fourth SKI director. He serves from 1983 to 1999.
Biochemist Jerard Hurwitz, who co-discovered RNA polymerase in 1960, comes to SKI in 1984 as part of an effort to grow the molecular biology program.
Physician-scientists Malcolm Moore and Karl Welte isolate a protein from human cells that stimulates new blood cell growth. Called G-CSF, this protein forms the basis of filgrastim (Neupogen), one of the most important cancer drugs ever developed.
Biochemist Ora Rosen, working in collaboration with researchers at Genentech, clones the gene for the insulin receptor, the molecule to which the insulin hormone binds and through which it signals to the cell.
Molecular biologist Ken Marians, who arrived at SKI in 1984, makes numerous contributions to the understanding of how prokaryotes replicate their DNA. His research shows that the process is intrinsically tolerant of DNA damage, and that there are various ways to bypass it.
Physician-scientist John Mendelsohn, who co-led the SKI Molecular Pharmacology Program from 1985 to 1990, developed the concept of using antibodies to block the epidermal growth factor receptor (EGFR) as a way to treat cancer. At MSK, he conducts important laboratory research and, with MSK colleagues, spearheads pivotal clinical trials that spur the development of the EGFR-blocking drug cetuximab (Erbitux). This work blazes a path for other growth factor receptor-targeting drugs such as trastuzumab (Herceptin).
Cell biologist Joan Massagué delineates the TGF-beta signal transduction pathway from membrane receptors to nuclear targets, establishing the central concept for how this family of pleiotropic signals controls stem cell division, immunity, and metastasis. Dr. Massagué arrived at SKI in 1989, becoming chair of the Cell Biology Program.
Biochemist James Rothman teases apart the mechanism that cells use to package and transport proteins. For this work, he shared the 2013 Nobel Prize in Physiology or Medicine. Dr. Rothman was a member of SKI from 1991 to 2003 and founding chair of the Cellular Biochemistry and Biophysics Program.
Cancer geneticist Kenneth Offit, who has a joint appointment in the Cancer Biology and Genetics Program at SKI, discovers the most common mutation of BRCA2. This inherited mutation is associated with a much higher risk of breast and ovarian cancers in women.
Organic chemist Samuel Danishefsky synthesizes a type of cancer drug called an epothilone, which exhibits a manner of cell killing similar to that of the chemotherapy drug Taxol.
Developmental biologist Lee Niswander shows that bone morphogenetic protein (BMP) controls the programmed cell death that occurs between the digits of the developing chick limb. Blocking BMP signaling results in chicks with webbed feet, similar to what is seen in ducks.
Nicknamed the "guardian of the genome," the p53 gene is mutated in more than half of all cancers. Using X-ray crystallography, structural biologist Nikola Pavletich determines the structure of the p53 protein, showing how it binds to DNA, a major milestone in cancer research.
Molecular biologist Mark Ptashne, who won the Albert Lasker Award for Basic Medical Research in 1997, joins SKI the same year. Through his work on the lambda repressor, conducted at Harvard, Dr. Ptashne showed how gene transcription — turning genes on and off — could be regulated by a simple "molecular switch" composed of proteins binding specifically to DNA.
Molecular biologist Maria Jasin uses a mouse model to show that the BRCA1 protein is necessary for the repair of double-strand breaks in DNA by homologous recombination. Inherited mutations in the BRCA1 and BRCA2 genes are responsible for a large share of familial cancers.
As president of MSK from 2000 to 2010, physician-scientist Harold Varmus greatly expands the institution's research efforts. Dr. Varmus, together with J. Michael Bishop, discovered that the proto-oncogene src is a normal part of cellular DNA. For this work, they were awarded the Nobel Prize for Physiology or Medicine in 1989.
David Scheinberg and colleagues publish the first practical methods for selectively targeting highly potent alpha particles, derived from Department of Energy programs, to various cancers. Clinical trials in people with leukemia soon follow.
Founded and directed by molecular pharmacologist David A. Scheinberg, this center is the first and largest of several collaborative research centers to be established at MSK. Its purpose is to encourage drug development and speed the translation of discoveries from the laboratory to the bedside.
Michel Sadelain, Renier Brentjens, and Isabelle Rivière develop genetically engineered T cells with a chimeric antigen receptor (CAR), now a powerful way to fight leukemia and other blood cancers. CARs are hybrid proteins made up of different immune molecules joined together.
Molecular biologist Thomas Kelly joins SKI as director after a 30-year career at the Johns Hopkins University School of Medicine. Dr. Kelly helps to strengthen the basic science programs at SKI by recruiting many new investigators to the institution.
Kathryn Anderson, a prominent developmental biologist who had been at SKI since 1996, becomes the first female chair of an SKI program, Developmental Biology, in 2003.
Immunologist James Allison joins SKI to help steer the clinical development of a new drug that blocks a molecule on immune cells called CTLA-4. Dr. Allison was the first to show, in 1996, that blocking CTLA-4 could cure cancer in mice. The new drug, called ipilimumab, opens up a whole new approach to cancer treatment geared toward “releasing the brakes” on the immune system. Dr. Allison, along with Tasuku Honjo, won the 2018 Nobel Prize in Medicine or Physiology for this work.
Molecular pharmacologist Neal Rosen shows how inhibiting different parts of the RAS-RAF-MEK-ERK and PI3K-AKT-mTOR pathways with targeted drugs leads to feedback allowing cancers to adapt to these drugs.
Former MSK President and physician-scientist Paul Marks conducts laboratory work leading to the development of the first HDAC inhibitor, called SAHA or vorinostat. This drug works by targeting an enzyme called histone deacetylease, altering the way DNA is wrapped around proteins called histones. Marketed by Merck as Zolinza, the drug was approved in 2006 for the treatment of advanced refractory cutaneous T cell lymphoma.
Developmental biologist Kathryn Anderson shows that an important signaling protein in mammals, Hedgehog, depends on a cell structure called the primary cilium for its action.
Structural biologist Dinshaw Patel, working with David Allis at The Rockefeller University, determines the structure of a protein that binds to and reads the instructions imprinted on histones, DNA’s packaging proteins. The research reveals new mechanisms by which some diseases, including certain types of leukemia, may arise.
Immunologist Alexander Rudensky, who joined SKI in 2009, is a world expert on the biology and function of regulatory T cells (Tregs), an important subset of immune cells that help keep the immune system in check. Understanding Tregs has implications for treating cancer as well as autoimmune diseases.
Current MSK President and Member of the SKI Cancer Biology and Genetics Program Craig Thompson is recognized for having rekindled interest in cancer metabolism as a means to understand and treat the disease.
Ipilimumab (Yervoy®), the first immune checkpoint inhibitor, is approved by the FDA for the treatment of advanced melanoma, based on clinical trials led by Jedd Wolchok, a joint member of the SKI Immunology Program. Patients at MSK began receiving ipilimumab in 2004, under the care of Dr. Wolchok. These patients are some of the earliest patients in the world to receive this drug, and a number of them are still alive today.
Biologist Scott Lowe joins MSK in 2011. While a graduate student at the Massachusetts Institute of Technology, together with his advisor, Tyler Jacks, Dr. Lowe showed that p53 is required for the cell-killing action of certain chemotherapy drugs. DNA damage triggers p53 to induce the cell to commit suicide.
SKI development biologist and Howard Hughes Medical Institute Investigator Jennifer Zallen discovers that receptor proteins of the Toll family direct the oriented cell rearrangements required for the elongation of the head-to-tail axis during Drosophila development.
Joan Massagué, who joined SKI in 1989, becomes its director in 2014. Dr. Massagué is internationally known for his work on the TGF-beta family of growth factors and his contributions to the growing understanding of the biology of metastasis. He launches new SKI programs and collaborative research centers and increases interactions between experimental and clinical researchers at MSK.
Scott Lowe, an expert in genetic models of cancer, finds that restoring the activity of a gene called APC, which is often mutated in colorectal cancer, turns the cells to normal.
Dana Pe’er becomes Chair of the Computational and Systems Biology Program and launches a research program to decipher the identity and activity of thousands of individual cells, both cancerous and noncancerous, in human tumor samples.
SKI purchases an FEI Titan Krios cryo-electron microscope with a Gatan K2 Summit detector. This powerful device promises to greatly enhance scientists’ ability to understand the structure and function of biological molecules, including those that malfunction in cancer.
The FDA approves two chimeric antigen receptor (CAR) T therapies for blood cancers. This approach was pioneered by SKI scientists Michel Sadelain, Isabelle Rivière, and Renier Brentjens.
The US Food and Drug Administration approves the drug enasidenib (Idhifa) for the treatment of IDH-mutant acute myeloid leukemia that has stopped responding to other therapies. MSK’s President and CEO, Craig Thompson, did much of the preclinical work deciphering the relationship between the IDH mutations and cancer, including work done while he was at the University of Pennsylvania.
Using cryo-electron microscopy, and building on their earlier X-ray crystallography work, SKI scientists including Nikola Pavletich and Haijuan Yang solve the complete structure of mTORC1, a key regulator of cellular growth.
Check Point Software Technologies Ltd. (NASDAQ:CHKP) Q2 2022 Earnings Conference Call August 1, 2022 8:30 AM ET
Kip Meintzer - Investor Relations
Gil Shwed - Founder and Chief Executive Officer
Tal Payne - Chief Financial Officer and Chief Operating Officer
Conference Call Participants
Gregg Moskowitz - Mizuho
Tal Liani - BofA
Adam Tindle - Raymond James
Saket Kalia - Barclays
Joel Fishbein - Truist Securities
Brad Zelnick - Deutsche Bank
Shaul Eyal - Cowen
Matthew Hedberg - RBC Capital Markets
Gray Powell - BTIG
[Technical Difficulty] 2022 Financial Results Video Conference Call. [Operator Instructions] Joining me remotely today are Gil Shwed, Founder and CEO, along with our CFO and COO, Tal Payne. As a reminder, the video conference is live on our website and is recorded for replay. To access the live conference and replay information, please visit the company’s website at checkpoint.com. For your convenience, the replay will be available on our website. If you would like to reach us after the call, please contact Investor Relations by e-mail at firstname.lastname@example.org.
During this presentation, Check Point’s representatives may make certain forward-looking statements. These forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934, include but are not limited to, statements related to Check Point’s expectations regarding our products and solutions, expectations regarding customer adoption of our products and solutions, expectations related to cyber security and other threats, expectations regarding our Q3 2022 projections, our 2022 initiatives, the market for IT security, competition from other products and services, supply chain, general market, political, economic and business conditions, including the impact of the COVID-19 pandemic. These forward-looking statements 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 SEC.
The forward-looking statements in the presentation 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. In our press release, which has been posted on our website, we present GAAP and non-GAAP results, along with a reconciliation of such results as well as the reasons for our presentation of non-GAAP information.
Now, I’d like to turn the call over to Tal Payne for a review of our financial results.
Thank you, Kate. Good morning and good afternoon to everyone joining us on the call. I will start with a review of the second quarter and right at the back, you can see that we had an excellent quarter. Both revenues and earnings per share were at the high-end of our projections, $571 million revenues, which is $11 million above the midpoint of our projections, earnings per share of $1.64, which is also at the high end of our guidance and $0.04 above the midpoint of our projections.
Before I proceed further into the numbers, let me remind you that our GAAP financial results include stock-based compensation charges, amortization of acquired intangible assets and acquisition-related expenses as well as the related tax effects. Keep in mind, as applicable non-GAAP information is presented excluding these items.
Now, let’s take a dive into the numbers and I will start first with the revenues, which were quite nice this quarter, I will start from the total revenues. Revenues for the quarter accelerated reaching $571 million, which is 9% increase and increased from the $526 million. It’s basically more than double the growth rate compared to last year Q2, which was around 4%.
I know you will ask me about the billing. So let’s hit as we start, billing in the quarter reached $571 million, which is a 6% increase. I want to remind you that the billing for us is affected significantly by the deal timing, duration and the payment terms. Hence, it can fluctuate between quarter to quarter. Specifically, when we have the mega deals, mega deals is $20 million, $30 million, $40 million deals. In Q2 last year, if you recall and go through the script back then, we said specifically, we had quite a few mega deals, which were built in advance. So mega deal can happen, but can be built over time or once a year in the split payment. Last year, we had a few large deals, which were built actually in advance, which created the dip in the billing right now, but no effect on the run-rate and on the growth rate in general, which you can see very clearly in the P&L.
Deferred revenues is somewhat including that, because if you compare the deferred revenues, if deals came instead of in Q2. In Q4 or got advanced a bit, then it will be part of the deferred revenues. So, you can see deferred revenues, is healthy at $1.66 billion, which is an increase of $194 million or 13% growth year-over-year. So, that’s to cover the subject of the revenues.
If you go to the split in the revenues, first, let’s start with the two line items that together called product and subscription revenues, together with a double-digit growth, 13% growth year-over-year, reaching $343 million. It’s a double-digit growth in these two lines together for two quarters in a row. So, it’s nice to see it stabilizing on a double-digit, and hopefully, it’s planned to continue. So, it’s a great milestone for us. Even more than that for the first time in many, many quarters, probably maybe 10 years, we had a really strong product and license revenues.
I will remind you that last quarter, when you asked me about the billing, I told you – some of it is products that had delayed delivery Infinity, where we wait for customers to pull or just delivery of 2, 3 weeks after the order. It could happen every quarter. It also happened this quarter. We have quite a lot of that as well in this quarter. So, this is also slightly affecting the billing, but you can start it already seeing it translating into the P&L and we see 12% growth in our appliances. It came from like last quarter when we talked about it also from SMB mid large appliances, Maestro was very strong, which is the switches that enable us hyperscale network. We see Infinity customers also starting to use their product in loans as they implement the security solution in the organization. So, it’s very nice quarter for the product reaching double-digits for the first time in a long time.
If you look at the subscription, it was double-digit for a while and it continues to be nice with 14% growth in the subscription, reaching $210 million, an increase from the 12% last year of the $184 million last year. The growth continues to be driven by all the items growing, Quantum, CloudGuard, Harmony, but the double-digit is driven by a CloudGuard and Harmony, both of them considered new pillars for us on the last year or two. Our Harmony e-mail security continues to deliver great results and reminding you that we acquired some of the e-mail came from an acquisition in September last year, which will be annualized in September. So, we see nice growth in both of them, both cloud and in Harmony. All in all, it’s about 37% of our revenue is the subscription now. So, it’s becoming quite a large engine for us in the revenue growth and creation.
If I am going to revenues by geographies. So what you can see here, the percentages are the same like last year. So, you see 44% in EMEA, 44% of our revenues coming from Americas and 12% from APAC. If you calculate year-over-year, you will see the revenues grew across all geographies in quite a similar rate. So, quite healthy business all across our regions. So, that’s also pretty nice and stable.
I will move to the profitability. So of course, we hear it from many, many companies, us included, revenues we discussed. Gross profit moved up from $470 million to $501 million, strong gross margins. So, we continue to have strong with 88%. It’s a tick down. We actually pay significantly – we talked about in the last two quarters in a row. It’s – I actually expect it to continue for the rest of the year, which is part of the pressure on the margin, but it’s okay. It’s the temporary increase in the costs relating to either putting our hands on raw material on the open market or expediting shipment, because you need to get it early to the production line. These are strong margins taking into account these higher material costs and also shipping costs. Hopefully, this temporary phenomena will go back to normal towards in 2022. It’s too early to say, but it looks like for the second half of the year, it’s still here. We see the raw material coming in. This raw material that we produce now, are going to be part of the cost in the next two quarters. So, great results taking into account the massive pressures that all the companies are seeing in the raw material market.
Operating expenses, very similar to last quarter. We see operating expenses increasing faster than the revenues in 18%. This is in line with our plan from the beginning of the year. I will just remind you, our plan was – we are going to continue to increase our workforce, mainly in sales and R&D. We continue the elevated investment in our bucket, which is mainly CloudGuard and Harmony. So in line with the plan, we increased our workforce year-over-year, even double-digits, both in sales and in R&D. In sales, we still have some recruiting to continue. The year-over-year operating expenses increased mainly as a result of that fact, the compensation. Of course, return to travel and face-to-face interaction some cloud expenses and the acquisition that we had last year of Avanan and Spectral this year. So, that’s also part of those expenses. And there was not part of the original guidance therefore us meeting the EPS after these acquisitions as well it just shows the strength of the results.
If I am moving to the – below the operating income, so what we can see here, operating margin is higher than we planned. It’s actually 44%. We planned it slightly below, because we are still in the recruiting process. We still haven’t finished. Financial income, we are starting – you don’t see it here, because Q2 versus Q2 is $10 million, but if you compare to Q1, the sequential quarter, you will see it’s an increase. As our portfolio is being released, we invested in higher interest rate and we start to see an increase there.
On the other hand, on the taxes, tax provisions are getting indexed since – as you know, the index is quite high. The inflation, which is the indexation, is quite higher than nobody planned for it. It’s part of our tax expenses. That’s why you see it moving up to 19%. They deducted each other. Therefore, the net effect was minimal this quarter. And the total net income is $209 million, earnings per share, $1.64, which is $0.04 above the midpoint of our guidance, so quite good earnings per share and operating income.
If I am moving to our cash position and cash flow, I will start with the cash balances. So, our cash balances as of the end of the quarter, was $3.7 billion. Our operating cash flow this quarter was $212 million. I am reminding you that we hedge our balance sheet against currency fluctuations in order to minimize the effect on the P&L. So as you do balance sheet hedge, it minimize an effect on the P&L and protect our P&L and also this quarter it happened, but the fluctuations you see in the cash flow. This quarter, the fluctuation in the cash flow was significant. It was about $47 million, the hedge cash expense versus $6 million income in Q2 last year.
Net operating cash flow, excluding the effect of the hedge and taxes is an increase of 2%. So quite a healthy cash flow with continued strong collection from our customers and expenses in line with the growth of our headcount and expenses in the P&L. During the quarter, we also continue our buyback. You can see here, $325 million share repurchase continue. We purchased 2.6 million shares for $325 million, an average price of $127 per share. So, that’s the cash position.
So if I summarize, we had strong results, revenues and EPS in the high-end of our projection with accelerated revenue growth, double-digit growth in products, double-digit growth in subscription and we continue to be focused on the top line, while maintaining very strong profitability.
And now, I will turn over the call to Gil for his insightful comments.
So, thank you, everyone and glad to have you all join us. I will jump right in to give a little bit more color to the business and the environment and mainly about some customer wins, but before that I want to congratulate our Kip for his birthday. You see that Kip picked the very special day for his birthday and the best group of people that you wanted to celebrate with. So, happy birthday, Kip.
Happy birthday, Kip.
Thank you. Thank you very much.
And now, let’s talk a little bit about the first landscape, which as you can see continues to intensify. We have continued – I mean, we are seeing it for a very long time and it’s actually quite rare that for so many years, we are seeing such a, I would say, tense market, but we are seeing 32% increase in overall cyber attack. We see par organization on a global basis and 59% is sophisticated attacks like ransomware. You can see the statistics last quarter, 1 out of every 40 organizations was impacted by ransomware. And even more so, these attacks are now going beyond just small scale attacks or just hacking groups to a much bigger impact. We have seen country extortion. We have seen nation state organization using Gen 5 attack tools. And we have even seen a lot of geopolitical attacks happening in many, many parts of the world when one country is either spike or actually even attacking and using cyber warfare as a way to disrupt life in another country. So, this is something that’s now part of our real life. And with that, we anticipate and I think almost everyone around us that the strong demand for cybersecurity will continue with that continuous wave of fifth-generation cyber attacks.
I believe and I think we are seeing that customers, of course, will need the best security, which is what we stand for and what we aim to provide. I am pretty sure that customers will understand and will prefer solutions that are focusing on prevention and not just on detection of cyber attacks. And I think at the end, consolidation will also take a bigger pace both because it delivers better security and also because most organizations cannot manage the complexity of using tens or even more of different cyber solutions, which is happening in many, many cases. So, that’s kind of the big threat landscape.
How do we address that? Just to remind you, we have in Check Point, what we call the Infinity architecture. I think it’s by far the most integrated, the most comprehensive cybersecurity architecture in the market built on three pillars or three product families, Quantum, most of our business network security; CloudGuard for the cloud; and Harmony to secure users access and now even e-mail, it’s built upon a common management layer; and on ThreatCloud, which actually makes sure that all that information is being shared, integrated and proliferated in real time from one vector to another and we achieved the highest level of security.
How did we do on all these three pillars in the last quarter? And I think the good news is that we have seen accelerated core growth in every product pillar. In Quantum, we have seen nice growth from the low end, from the branches and SMBs all the way to the large installations. We have seen, I mean you heard about the product numbers, the product double-digit growth, but even more so the unit growth was also very good and again, all the way from the very small to the very large. CloudGuard, same thing continues double-digit growth and with Harmony that we have extended Harmony with big investment in e-mail security last year. We have seen over 50% growth in the e-mail security part which is great.
And I think you have already seen this slide from Tal. So I will just repeat that shortly. We have seen 9% revenue growth, highest growth in years, more than double than the rate that we have seen in the last couple of years. And that’s really fueled by the double-digit growth in products and subscription. You see the green line here and you see the correlation between the lines when the green line actually takes up eventually the blue line, the total revenue growth. So I mean, we are very happy about that trend. We have been investing in that for a long time. And the last two, three quarters, we are glad that restrained intensified. How does it go with the different pillars? So, I think the story here is kind of repetitive quantum. We have seen strong product demand from the SMB to the large enterprises, double-digit growth from the gateways.
And let’s look at a few wins. I will actually start from the small gateways here and these are both branch offices and also for small businesses. Here are a few examples. Utility companies in Europe, more than 6,500 ruggedized gateways for the different power stations, that are stationed all over the country. Another example is now the European telco that’s using our product to secure shops across the country, zero-touch deployment, very nice type of deployment. A little bit less usual in Europe, another humanitarian organization that’s actually using our gateways for a Fuji housing project. And this is actually – first, it’s so nice to see that our products are used for such purposes and it’s also nice to see that in 2022, one of the first things that refugees get is actually Internet access and even secure Internet access. That’s so important. So that’s another project that we just won. And last but not least is 2,500 gateways in APAC, a big telco that’s using that to manage service for again 2,500 small businesses across the nation and this somewhat represents some of the wins that we have in the lower part of the market.
If you look at the upper end of the market, I picked here two examples. Both of them are new customers. Both of them are competitive replacements. You can see on the right, the healthcare provider in Asia, support high capacity to get to 20 sites. They liked our management. We replaced their Fortinet and won against Palo Alto. And on the left side, very similar story, slightly different product sets, super high performance with our Maestro scalable performance. And the reason we picked us is wasn’t just for the performance even though we took Maestro is simply because our solution was the only one that actually blocked the malicious file that we are getting. They were getting malicious files all the average solution that they tested merely detected these files, but let them through. So, people can open the attachment and still be infected, even though the system, in some cases, could recognize them, Check Point and again, that’s consistent with our architecture. We were the only solution that actually blocked the malicious files and didn’t let them through. And of course, that’s by no coincidence, should be a winning factor to get such an installation. So, this is for Quantum.
Let’s look at one or two examples around CloudGuard. Again, here also continued the growth and let’s look at these two examples. In Europe, an important financial institution had the business transaction – business acquisition. As a result of that, they were looking a way to control their more sophisticated cloud environment that spans between AWS, Azure and the Google Cloud. They wanted better compliance, better visibility, and they actually – even though by the way, in this case, many organizations are deploying a solution for the first time. Here, we did replace another solution and want this account. Another organization in Europe, a leading retailer, part of our cloud transformation. They wanted to get better manageability. They liked our roadmap of how we provide more and more security to the cloud and another winning factor was the fact that they can connect and control both their on-premise environment and we are a public cloud solution using the same unified experience using similar tools and connect them in a better way. So, another nice win on the cloud front.
Last but not least is the Harmony sector, securing users. And again, we have augmented the Harmony with the e-mail security towards the end of last year and you see the numbers really accelerated there. They were good before, but were even better after the consolidation. And three quarters later, the numbers are still growing very, very nicely with over 50% growth. And here, you can see two examples in the U.S. One is a holding company. They are challenged by the way, similar to what we have seen with Quantum before and that’s the nice thing in Check Point. We apply the same principles, the same technology to different attack vectors, to different entrance vectors to the organization. So here it’s with the Harmony e-mail. Their old security solution didn’t stop the ransomware attempt. Harmony e-mail identified over 2,800 attacks from their mailboxes and not only identified them, but actually blocked them, highest – they found the highest effectiveness of e-mail security packages from everything they have seen.
And to the right, another major company in the U.S. in the safety and regulatory compliance industry. Harmony was the only solution that was able to deliver to the unified experience across e-mail, endpoint and mobile, both cases by the way it’s both new customers and the competitive replacement, which is, in many cases, the best cases. So as you can see, we have this winning streak across all product pillars, across all geographies and across many customer segments.
So to summarize, the quarter what we had, I think you see that the main theme here was the double-digit, the fact that we doubled the revenue growth, the fact that we had a double-digit growth on our products and subscription that drives the new business and drives the business growth. We have got to the upper end of our projection on both revenues and EPS – and we have continued to see healthy demand both from quantum, from the small to the large and for Harmony and CloudGuard. So I think overall, I am very pleased with the results this quarter. And I hope that we will keep seeing good market in the quarters to come.
Now, before we open it for the question and answer, let me touch a little bit on the guidance and the projections for the next quarter. So, let’s speak about the projections. Our projections for the third quarter, as you can see on the slide, revenues in the range of $555 million to $585 million, non-GAAP earnings per share between $1.60 to $1.72, GAAP EPS is expected to be approximately $0.32 less. I always say this caveat, projecting the future is nothing that was given to human kind. I mean, it can be better than what we anticipate, it can be worse. I think overall, we are seeing, on one hand, good execution on the Check Point field side, good enthusiasm for us and our team and the healthy demand in the marketplace. On the other hand, I think you all know that the economy is showing some signs of softness and there is lot of uncertainties around that. Some things we see and we know that will affect us like the increase in cost, the fact that the supply chain remains challenging in our regional model, for example, we were predicting that the supply chain issues will kind of get solved in the second half of this year and cost will return to the original cost. Right now, we don’t think it will happen in the next half of the year that has an impact on the expenses side.
The revenues and the business growth side, that’s something that’s even less in our control and less in our ability to project. But again, I think we remain quite positive and we have actually a little bit up the range for the revenue. So, I mean you can see that for projection for our third quarter, we are actually better than our original plan and better than what many of you expect based on your current models. So that’s – for the forecast, Tal, do you want to add something on the projection before we open it for questions? You are on mute, Tal?
Sorry, no, let’s leave it, because probably they are going to ask questions about it. So, let’s open the floor for the questions.
Good. So I will start the presentation and we’ll open it to your questions.
A - Kip Meintzer
Alright, Gil. [Operator Instructions] Today, we’re going to start out with Gregg Moskowitz from Mizuho followed by Tal Liani of BofA.
Alright. Thanks, Kip and happy 28th birthday to you.
So, question for Gil or Tal or perhaps both of you. Regardless of the macro environment, Gil, if I am understanding your tone correctly, it sounds like the demand drivers for Check Point are still healthy and intact. But similar to last quarter, your billings were a little below consensus. And in the Q1 period, you had called out that bookings grew strong double digits year-over-year, and that RPO grew over 20%. And so wondering if you’re able to share with us what the bookings growth and/or the RPO growth was this quarter? Thanks.
I will let Tal talk about that. But before that, I’ll just say that I think the main reason for that is that a year ago, we had some mega deals. And these mega deals, again, we have like a group of like a dozen customers worldwide that even get to – not even a dozen, less than a dozen customers. And I think a year ago, we had three of these customers that signed a 3-year contract prepaid in advance, and I’m talking contracts for tens of millions of dollars, that had a very positive impact on the billing last year. So that’s the main reason in this year since they were a 3-year deal, they are not even a renewal or anything like that in this year. So I think overall, for the quarter and for the first half, I think we finished it in line with – or not in line, slightly better than what I would anticipate for what I wanted. And again, Tal, you can speak more about the numbers.
Maybe I’ll just add another one because it’s important. I know we’re going to be asked about it every quarter. And you know, Gregg, because we are following us for so many years. I always said, billing is not a relevant indicator, but I will provide it to you because you’re asking. The reason I said it is always because of that. The mega deals changed dramatically that number and the timing of the payment as well. And if a deal is being pulled one quarter forward, then you have – and it’s a big one, then you will see an effect on the billion with absolutely no effect on the real run rate and vice versa. They can come one week later. It can affect your billing and then a week later, it comes and suddenly it’s very high. So it is an indicator, but I would look at it as part of the bigger picture, and that’s why I’m trying to give you more color. So last quarter, it was not about the comparable. Last quarter was about – we talked about that we had the booking that came, there was not even invoiced yet. And we talked about that in length last time. This quarter end goes. You had invoices billing or bookings that came in was not invoiced. And they are part of the booking.
And I can tell you that the new business grew in double digits this quarter as well, okay? But the biggest effect was really relating to the last year comparable that had a few really large deals, but think if a customer had a large deal last year, it will create a big increase in the billing hence translate over time deferred revenues and so on. But in this quarter, you won’t have it so it will actually create a flat or even a reduction, although the business is very healthy with that customer. So I’ll say be careful from just concluding for billing. That’s why I always say, you look at the deferred revenues, look at the revenues over time, look over four quarters and so on. So I keep saying the same thing. This quarter was mainly about the fact that there was quite a lot of deals last year that not only was booked in advance, but also build in advance.
Helpful. Thank you, both.
Our next up is Tal Liani, BofA, followed by Adam Tindle, Raymond James.
Hi, guys. Good morning. I want to talk about demand and ask. Can you – can you talk about your expectations for demand cyclicality, meaning in past years, we had better years of higher growth and lower growth, and we’re coming here after 3 years of very strong growth of demand for core products. And beyond just the new products, can you talk about your expectations for any demand cyclicality, any reasons for demand to slow down or accelerate for core products? And second, on the same topic, you have new sales management in certain regions and you have new products. Can you talk about the breakdown of new customers and old customers, meaning are the new efforts? Do they help you to bring in new customers that you didn’t have before? Thanks.
First, I don’t see much patterns right now in the cyclicality. There is, of course, many factors. Some people anticipate that the network security business will slow down because there is a shift to the cloud. So far, we haven’t seen that. Actually, if there is a mistake that we made in the past, is maybe under investing in the network security and over-investing in the cloud. On the same time, again, the cloud will become and is becoming a very important factor. So I think the investment that we have here is well justified. But I think the network security so far remains a strong element. And from the cyclicality, again, we have customers all sizes all around the world. So I think a lot of it is our execution. But again, we may see bigger factors than just that.
In terms of sales management, I think you’re hitting on a good point. We do have a relatively new sales management, reenergized, leading our field. Rupal who is running – Rupal Hollenbeck who is running our Global Commercial Organization, sales, marketing, and all these functions joined us about a quarter ago. This was our first quarter in Check Point. Before that, she was a Board member in Check Point. So she knows us quite well and it was very enthusiastic about the opportunity. It’s great to see that refreshed energy. Her team is also relatively new. Our Head of Americas has been with us for just over a year, and our Head of Europe where both is about a little bit more than 1.5 years. So I think overall, it’s a very, very good thing. By the way, interestingly enough, when you look at this new world, this week, we are meeting here in Tel Aviv for the first time in person. So it’s kind of interesting to see that we are a global management team from, I don’t know, five countries, maybe more. That’s been working together for anything from a year, 2, 3 years and are meeting, seeing each other for the first time in person just this week. We started the week by asking everybody to stand up and saying, well, you got legs because for the first time, we’ve met the entire team. And we are also very tolls that’s a challenge. So we are here in Tel Aviv this week.
So in terms of new customers, existing customers, I do put a strong emphasis on new customers. We are seeing that successful, especially in Europe and Asia. We also got some nice wins. I think I showed them in the Americas. But I think in America, in the U.S., especially, we have plenty of potential toward more new customers that will join the Check Point family. And a lot of our growth also comes from existing customers that expand. We are actually seeing that – in many cases, we win new customers with our network security, and we win and with the existing customers, we’ve actually expanded add things like the CloudGuard. So, I think the pattern in many cases is that they like Check Point because of the network security and then we expand to the cloud. With Harmony, I’ve seen both cases some new customers that start with Harmony and some existing customers that expand to Harmony.
Alright. Our next question is going to come from Adam Tindle from Raymond James, followed by Saket Kalia from Barclays.
Alright. Thanks, Kip. I just wanted to ask, you’ve got some company-specific tailwinds to both growth and margins as we look forward and I wanted to double-click on each. On growth, maybe you could recap the pricing actions that you’ve taken to date if I’ve got it right, I think there was maybe another one just about a month ago that you took. So pricing actions to date that should catalyze growth moving forward? And on margin, Tal, you mentioned material costs. You also have some currency that I’m not sure immediately reflects. So the tailwinds to both growth from ASP increases and margin from material costs and currency moving forward would be helpful? Thank you.
Yes. So maybe first on the pricing, you’re correct. We had a price increase from the beginning July. So it’s not relevant for this quarter, theoretically should be relevant for the future, but I would say, there is a gap between the theory and the actuality in terms of what you see when the deals are coming in. So hopefully, it will help. But I’m not counting on it, let’s put it this way, because there is a lot of pressure also on our customers now because we’re all in this new economic environment. So it’s a tool to try to, but I hope it will help, but I’m not sure. So that’s one. Regarding the...
Just to capture that. I think so far, the price increases that we are doing are trying to kind of pay for the increase in COGS. But on the same time, there is a counter pressure on discounts. I think overall, it kind of balances off. It’s not – customers are not paying – let’s – if you look at the average, customers are not paying a higher unit cost to Check Point at the moment.
So, Adam, it is the good result is the discount will not increase, right? I don’t plan it to actually increase test, but maybe who knows. I don’t think so, but we will see. When we’re looking at the cost, it’s definitely increased. You can see, to be honest, I’m not that concerned about it because I believe at this point of time, I think it’s a short-term phenomenon and much more important is to be able to deliver. I think you can see in many industries, there is just no ability to deliver. And that kill the entire model, right? It kills your ability to deliver. So our focus is – even if we need to pay more, we want to pay more in order to get it and to be able to ship it to our customers and keep them secure. So that’s our – and the price for it is that we lose a few sells, but I don’t think it’s a big deal. I was hoping that it will fade away in the second half of 2022, but it doesn’t look like it’s going to fade away at this point of time. So we will follow up, and we will update you as we see some changes. But again, for a company like us, $10 million is not nice, but it’s not something that move us to a problem, right? We have profit. It’s okay. So that’s regarding that. Will it stay the same or increase the gap might even increase, right? Because remember, every time there is something new showing up, some things are moving like problems sold in certain raw material – and some problems are not solved. And if you follow the company or the chip companies that’s published, it doesn’t look like they are going to solve the problem in Q3, I hope, in the future. So everything they see in publish is affecting companies like I think like servers and all the raw material that the server needs. It’s quite a lot of effect.
Alright. Our next up is Saket Kalia, followed by Joel Fishbein.
Okay. Great. Hey, thanks, everyone and happy birthday, Kip.
Tal, maybe for you, just on the mega deals from last year. You talked about a few customers and tens of millions of prepaid. Just to make sure that everyone is on the same page, can you put a finer point on that, right, just so that we could kind of think about that normalized comparable just to make sure we’re not maybe necessarily mispositioned kind of going forward. How do you think about – you called out in Q3, Avanan, I think, is going to lap just as we calibrate our Q3 billings, how much should we think about Avanan sort of lapping year-over-year, if you will?
Avanan actually joined in September. So that’s not a big deal. And in general, remember, Avanan is a few low millions, right? It was when we acquired it will have some effect, maybe on the subscription, right? But it’s not 10%. It’s 1%, maybe 2%, right? So it’s nothing dramatic there. But – so that’s regarding that. Spectral acquisition, a few million dollars increased expenses by it was this year. And again, nothing dramatic, but when you accumulate a few acquisitions, it’s, of course, affected like when you looked at our expenses then of course, it added to our expenses, a few millions of dollars as well, right? So, that’s part of that growth that you see in the year-over-year when you compare Q2 versus Q2. Remember on the mega deals of going back to the billing, it’s also very hard to predict it, right? Because even if you know that you have in a final specific deal, you don’t know if it will account for 1 year or 3 years and what will be the payment is, right? So this is something that’s hard to predict. That’s why I would say billing is a trick. It’s okay for you to measure it, but be careful not to give it overweight. That’s all I’m saying.
Alright. Our next question is coming from Joel Fishbein, followed by Brad Zelnick of Deutsche Bank.
Happy birthday, Kip.
Gil, for you, you did – you helped us with the customer wins around quantum. But I was hoping that you would help give us a little color around some of the customer wins with regard to CloudGuard and Harmony and what the competitive dynamics look like in that – in those two areas.
So I think I gave the examples on all fronts. I gave a few examples with Harmony and we’ve one of them, Harmony e-mail we won because we were – we’re blocking files that over were blocking. And again, that’s ransomware that was impacting the customers. another one, it was that plus the fact that they got a more consolidated view. First, in both cases of Harmony and CloudGuard, the markets are a little bit more fragmented. We actually compete against many, many different vendors, cloud, for example, there is probably a suite of, I don’t know, at least half a dozen, if not more different, even major different subsegments of the market with Harmony even more, it’s from endpoint, mobile e-mail disk and data security, so many categories. I think the value proposition that we provide is not to compete necessarily by against each one of the vendors, especially on the cloud side, but also on the endpoint, but more providing the overall architecture, providing an end-to-end cybersecurity solution. And I think that completeness of solution, the architecture and the vision is something that’s very, very unique to us, especially because these are all integrated. Because when we see a malicious file coming from your e-mail, this file will also get blocked when you try to download it on the network. And I don’t think any other solution does it actually even worse. Many of these average solutions will see the malicious file, we let it through, and 20 minutes later, we will send some alert that says, hey, you have been infected and that’s too late. And again, I don’t think that we get the full credit from customers that understand that. I think we need to do a better job demonstrating showing and winning that. But this is a fact, and this is something that makes the Check Point’s security so much better than anyone else.
Thank you so much.
Alright. Our next call – our next question will come from Brad Zelnick of Deutsche Bank, followed by Shaul Eyal Al from Cowen.
Excellent. Thanks so much and happy birthday, Kip.
Gil, congrats on the accelerating top line results, which seem to demonstrate strong resiliency in the business. You overachieved first half expectations, you’ve guided stronger for Q3 you also gave some caveats when you guided about the environment, and you didn’t update your full year guidance. Is there something you’re seeing in real time that gives you hesitation? Or is not raising the full year just your typical conservatism? But regardless, Check Point has weathered many cycles. And people seem to expect spending on security to be resilient during a downturn. What is your experience from prior downturns and what are you seeing today, Gil?
Okay. That’s very multiple parts. And I think they are all related to the same subject, but it’s excellent because I think your question is something that many people here probably worry about. First, I don’t see anything that you don’t see. I mean my concern about the global economy is what we all see in terms of the Check Point sales force, the Check Point customers, I don’t see any changes. I mean our forecast or our pipeline, the feedback, as I mentioned, we are just seeing here for the first time, our sales leader in person. I haven’t sensed from them that they sense any anything different about the third quarter or about the rest of the year, but we also see the economy, and we know that things can happen.
In terms of the full year guidance, we didn’t want to open the full year guidance. We are still within the range that we’ve provided at the beginning of the year, but we’ve actually looked into that and it’s likely that we will be slightly to the right there. That will be – I mean, we probably won’t get to the lower part of it because we have already got some, I don’t know, over $10 million in additional revenues from the first two quarters. I don’t know, Tal, if you want to discuss it a little bit more detail. But yes, the guidance for the – we can provide we can calculate a narrowing range a little bit more to the right, more to the upper end of the guidance that we provided at the beginning of the year. Tal, do you want to?
Yes. I just said, Brad, it’s like I know you know us, but it’s not only about knowing us. It’s about we gave a guidance in the beginning of the year. We are in a very, I would call it, bizarre macroeconomic environment, many different metrics showing up on different direction, unemployment on the one hand, inflation, on the other hand, interest rate war many moving parts, Ukraine, Russia, there is many things happening and you should be cautious. So on the one hand we don’t see anything to worry about, except for everything that we see around us, right? So – and we never – if you look at our history, we – I don’t think we ever updated our guidance because this is not – we don’t think you should not beat your guidance to the year. Some companies provide guidance only for one quarter. We provided a year, in the beginning of the year and then each quarter going forward. So in the short-term, looking into Q3, you see quite a good guidance. So that means we don’t see anything dramatic. Q4 it looks like beyond the mountains, right. We need to wait to see what’s happening in general in the market. Q3 is ahead of us, and it looks like we gave a very good guidance there. So there is not too much details into that logic.
Okay, thank you.
Alright. Our next question is coming from Shaul Eyal, followed by Mattew Hedberg of RBC.
Thank you for that. Good afternoon, everybody. So maybe let me try and continue on Brad’s prior question on narrowing the annual range. Tal, I understand that maybe you haven’t done it in the past. But in the past, you haven’t even like had a PowerPoint presentation, but you have started like two, three quarters ago. It’s a great thing by the way.
So, maybe it’s a good point to reconsider that.
Okay. So I will tell you what I will do.
In other words, any reason to think that you wouldn’t be growing at least the midpoint or above your former wide range guidance?
I was going to say, you know what, I’ll take you advance. And next quarter, I will update the annual guidance.
We are probably going to come. Again, I want to tell don’t kill me, but I think we will probably be roughly at least $10 million more than – the new midpoint should be probably at least $10 million more than the previous midpoint. On the revenue side and I think we are very happy about that.
I would say just I would just say, if you look at Q4, which is the biggest quarter, the biggest risk always relating to the product line, right? It’s a huge product quarter and to product the very low visibility by the nature of the beast, right? So taking into account the general situation, it’s – think about it, it’s like 6 months away because all the booking coming in December. It’s just a bit too early to be brave about December. That’s my opinion.
No argument. Alright.
Alright. Our next question is going to come from Matthew Hedberg, followed by Gray Powell of BTIG.
Great. Thanks. Happy birthday too, Kip.
You’ve been around security for a long time. And in prior downturns, you were primarily a firewall appliance center. Obviously, now it’s a much more diversified platform. How do you think some of the newer lines like CloudGuard and Harmony will do versus Quantum? And I guess specifically, is there a higher ROI aspect to some of the newer products, maybe quick limitation versus maybe some historical maybe more transformational type sales?
First, you’re right. I mean if you implement the full Infinity architecture, you can get an amazing ROI and you can get much better security in much shorter time. And we’ve seen it. We’ve seen it in some installation. I think I gave the example in Q1 about one we’re getting installed through Harmony agent immediately. So malware we didn’t stop there. And so, that this organization was infected with some really serious spine from probably another country. And within 2 weeks, we completed the full transformation for that organization security architecture with the full Infinity architecture. This process usually takes between 6 to 18 months in most organizations. So I think that potentially, if you jump into the Infinity architecture and adopt both Quantum, CloudGuard and Harmony is huge to elevate the level of security in a short time.
Our most organizations doing that, I think, unfortunately, there is still a lot of work to develop the work methodologies to convince the customer to jump into this deepwater and do the transformation. By the way, once people do the transformation, the ROI is amazing. You’ve got one console, one set of products. You’re seeing your present, again, everybody speaks about visibility. We get much better visibility, but more important, you simply block the attacks that other people don’t, I think, just some of the wind cases that we’ve seen is it’s actually so ridiculous to see that – another solution will take a file, let the filing in and 20 minutes later will tell you, you have been infected. We know how to stop the file from getting in if it’s infected or another solution, you will see a malicious e-mail coming to your organization. You will identify. An hour later, the same file can come from the network because somebody will download it and it won’t be stopped. And these are all the things that are unique about the Check Point architecture. We know how to block all these cases. And I think if customers would implement our CloudGuard, our Harmony and our Quantum solution as part of the Infinity architecture, we will get huge return on investment and much, much better security.
Alright. Our next question and last question will be coming from Gray Powell, BTIG.
Okay. Great. Thank you very much for welcome in, really appreciate it. Yes. So just to follow-up on sort of the macro line of questioning, I was hoping we could drill in on Europe a little bit. How have customer conversations been in Europe, like the last 3 months? Are you seeing any changes in sales cycles there or any additional scrutiny on deals? Just any additional color you can give us on Europe would be great?
No, I haven’t noticed any change in Europe. I mean, it’s – the markets are open. It looks like – I mean our discussion around in Europe is the fact that we are seeing that the everything is being opened up. People behave like there is no corona and you have the corona increases. But it’s not – in terms of cyber spending, I don’t think that I’ve seen much discussion, maybe with the exception of Russia, let’s partly in Europe that has impacted our revenues.
Now, it’s actually, the results in Q2 are very good. So we didn’t see like some issues there.
Okay. Just in terms of the 12% product revenue growth, was that pretty evenly split across geographies or anything stand out Europe or elsewhere?
Yes, you can see that we have had the slide that shows the sales by geography and we were the same this quarter and a year ago, 44% in Europe and in America and 12% in APAC, both Q2 last year and Q2 this year in terms of revenues.
Fair enough. Alright. Thank you very much.
Alright, guys. Thank you very much – guys and gals, thank you for attending today, and thank you for all the birthday wishes. We look forward to seeing you during the quarter. And we will be speaking to you after the call, obviously. So take care, and have a great day. Bye-bye.
And thank you, Kip for sharing your birthday with us.
Thank you. Have a great day, guy. Bye-bye.
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By Steven Scheer
JERUSALEM (Reuters) -Check Point Software Technologies beat estimates with a 2% gain in second-quarter profit, boosted by double-digit growth in revenue from products and subscriptions to protect cloud and other networks from escalating cyber attacks.
"The demand for cyber has remained healthy in the last year, and I hope it will stay that way," Chief Executive Gil Shwed told reporters.
Still, he cautioned that there are many uncertainties moving forward due to global economic softness and supply chain issues that have boosted its costs and weighed on its business. But "we remain quite positive," Shwed later told analysts.
Check Point shares, which have risen 7% this year, opened down 4.1% at $119.46.
Israel-based Check Point projected third-quarter revenue of $555-$585 million and adjusted earnings per share of $1.60-$1.72. The company was forecast to post EPS ex-items of $1.71 on revenue of $566.2 million, according to I/B/E/S data from Refinitiv.
Check Point said on Monday that in the April to June period, it earned $1.64 per diluted share excluding one-off items, up from $1.61 a year earlier. Revenue grew 9% to $571 million. It had been forecast to earn $1.62 a share on revenue of $560 million.
Over the past quarter, cyber-attacks increased by 32%, while advanced attacks, such as ransomware, grew by 59% to underscore the critical need for cyber security, Shwed said.
Check Point has moved to a prevention-first security system that includes securing corporate networks, the cloud and employees who work remotely. Security subscription revenue grew 14% in the quarter.
Shwed said that after making six acquisitions in the last few years, Check Point, with $3.7 billion in cash, may seek more.
"It's always challenging to find the right companies and we are (constantly looking) for the right targets," he said. "I'm sure that in the mid to long range, we'll find more opportunities."
Check Point said it bought back $325 million worth of shares in the quarter, as part of its share repurchase programme.
(Reporting by Steven Scheer; Editing by Jan Harvey)