Semiconductor Industry Giants Report Strong Q2 2024 Financial Results

Tower Semiconductor Reports 2024 Second Quarter Financial Results - Tower Semiconductor (NASDAQ:TSEM)

MIGDAL HAEMEK, Israel, July 24, 2024 (GLOBE NEWSWIRE) -- Tower Semiconductor TSEMTSEM)) reports today its results for the second quarter ended June 30, 2024. Second Quarter of 2024 Results Overview Revenue for the second quarter of 2024 was $351 million as compared to $327 million for the first quarter of 2024. Gross profit for the second quarter of 2024 was $87 million as compared to $73 million for the first quarter of 2024. Operating profit for the second quarter of 2024 was $55 million and included $6 million restructuring income, net associated with the previously disclosed reorganization and restructure of our Japan operations during 2022, as compared to $34 million in the first quarter of 2024. Net profit for the second quarter of 2024 was $53 million, or $0.48 basic and diluted earnings per share and included $3 million restructuring income net impact, as compared to net profit of $45 million, or $0.40 basic and diluted earnings per share for the first quarter of 2024. Cash flow generated from operating activities in the second quarter of 2024 was $113 million. Investments in equipment and other fixed assets were $113 million, net and debt payments totaled $10 million. In the first quarter of 2024, cash flow generated from operating activities was $110 million, investments in equipment and other fixed assets were $98 million, net and debt payments totaled $8 million. Business Outlook Tower Semiconductor guides revenue for the third quarter of 2024 to be $370 million, with an upward or downward range of 5%. Mid-range guidance reflects year over year and quarter over quarter growth. Mr. Russell Ellwanger, Chief Executive Officer of Tower Semiconductor, stated: "We are tracking well and remain committed to our stated target of sequential revenue growth throughout 2024, as evidenced by our second quarter performance and third quarter guidance. In addition to the recovery in mobile and growth in our advanced Power platforms, we are experiencing a robust, rapidly expanding demand from both existing and new customers within the optical space. Our strong position in optical transceivers, coupled with multiple years of 1st-tier customer partnership in developing both passive and active Silicon Photonics platforms, have uniquely prepared us to be the leading foundry of choice for data transfer within the exploding AI market. We remain focused on innovation to enhance our market leadership and hence to continue to deliver sustainable growth." Teleconference and Webcast Tower Semiconductor will host an investor conference call today, Wednesday, July 24, 2024, at 10:00 a.m. Eastern time (9:00 a.m. Central time, 8:00 a.m. Mountain time, 7:00 a.m. Pacific time and 5:00 p.m. Israel time) to discuss the Company's financial results for the second quarter of 2024 and its business outlook. This call will be webcast and can be accessed via Tower Semiconductor's website at www.towersemi.com or by calling 1-888-281-1167 (U.S. Toll-Free), 03-918-0610 (Israel), +972-3-918-0610 (International). For those who are not available to listen to the live broadcast, the call will be archived on Tower Semiconductor's website for 90 days. The Company presents its financial statements in accordance with U.S. GAAP. The financial information included in the tables below includes unaudited condensed financial data. Some of the financial information, which may be used and/or presented in this release and/or prior earnings related filings and/or in related public disclosures or filings with respect to the financial statements and/or results of the Company, which we may describe as adjusted financial measures and/or reconciled financial measures, are non-GAAP financial measures as defined in Regulation G and related reporting requirements promulgated by the Securities and Exchange Commission as they apply to our Company. These adjusted financial measures are calculated excluding the following: (1) amortization of acquired intangible assets as included in our operating costs and expenses, (2) compensation expenses in respect of equity grants to directors, officers, and employees as included in our operating costs and expenses, (3) merger contract termination fees received from Intel, net of associated cost and taxes following the previously announced Intel contract termination as included in net profit in 2023 and (4) restructuring income, net, which includes income, net of cost and taxes associated with the reorganization and restructure of our operations in Japan including the cessation of operations of the Arai facility which occurred during 2022 as included in net profit. These adjusted financial measures should be evaluated in conjunction with, and are not a substitute for, GAAP financial measures. The tables may also present the GAAP financial measures, which are most comparable to the adjusted financial measures, as well as a reconciliation between the adjusted financial measures and the comparable GAAP financial measures. As used and/or presented in this release and/or prior earnings related filings and/or in related public disclosures or filings with respect to the financial statements and/or results of the Company, as well as may be included and calculated in the tables herein, the term Earnings Before Interest Tax Depreciation and Amortization which we define as EBITDA consists of operating profit in accordance with GAAP, excluding (i) depreciation expenses, which include depreciation recorded in cost of revenues and in operating cost and expenses lines (e.g. research and development related equipment and/or fixed other assets depreciation), (ii) stock-based compensation expense, (iii) amortization of acquired intangible assets, (iv) merger contract termination fees received from Intel, net of associated cost following the previously announced Intel contract termination, as included in operating profit and (v) restructuring income, net in relation to the reorganization and restructure of our operations in Japan including the cessation of operations of the Arai facility, as included in operating profit. EBITDA is reconciled in the tables below and/or in prior earnings-related filings and/or in related public disclosures or filings with respect to the financial statements and/or results of the Company from GAAP operating profit. EBITDA and the adjusted financial information presented herein and/or prior earnings-related filings and/or in related public disclosures or filings with respect to the financial statements and/or results of the Company, are not a required GAAP financial measure and may not be comparable to a similarly titled measure employed by other companies. EBITDA and the adjusted financial information presented herein and/or prior earnings-related filings and/or in related public disclosures or filings with respect to the financial statements and/or results of the Company, should not be considered in isolation or as a substitute for operating profit, net profit or loss, cash flows provided by operating, investing and financing activities, per share data or other profit or cash flow statement data prepared in accordance with GAAP. The term Net Cash, as may be used and/or presented in this release and/or prior earnings-related filings and/or in related public disclosures or filings with respect to the financial statements and/or results of the Company, is comprised of cash, cash equivalents, short-term deposits, and marketable securities less debt amounts as presented in the balance sheets included herein. The term Net Cash is not a required GAAP financial measure, may not be comparable to a similarly titled measure employed by other companies and should not be considered in isolation or as a substitute for cash, debt, operating profit, net profit or loss, cash flows provided by operating, investing and financing activities, per share data or other profit or cash flow statement data prepared in accordance with GAAP. The term Free Cash Flow, as used and/or presented in this release and/or prior earnings related filings and/or in related public disclosures or filings with respect to the financial statements and/or results of the Company, is calculated to be net cash provided by operating activities (in the amounts of $113 million, $110 million and $75 million for the three months periods ended June 30, 2024, March 31, 2024 and June 30, 2023, respectively) less cash used for investments in property and equipment, net (in the amounts of $113 million, $98 million and $89 million for the three months periods ended June 30, 2024, March 31, 2024 and June 30, 2023, respectively). The term Free Cash Flow is not a required GAAP financial measure, may not be comparable to a similarly titled measure employed by other companies and should not be considered in isolation or as a substitute for operating profit, net profit or loss, cash flows provided by operating, investing, and financing activities, per share data or other profit or cash flow statement data prepared in accordance with GAAP. About Tower Semiconductor Tower Semiconductor Ltd. (NASDAQ/TASE: TSEM), the leading foundry of high-value analog semiconductor solutions, provides technology, development, and process platforms for its customers in growing markets such as consumer, industrial, automotive, mobile, infrastructure, medical and aerospace and defense. Tower Semiconductor focuses on creating a positive and sustainable impact on the world through long-term partnerships and its advanced and innovative analog technology offering, comprised of a broad range of customizable process platforms such as SiGe, BiCMOS, mixed-signal/CMOS, RF CMOS, CMOS image sensor, non-imaging sensors, displays, integrated power management (BCD and 700V), photonics, and MEMS. Tower Semiconductor also provides world-class design enablement for a quick and accurate design cycle as well as process transfer services including development, transfer, and optimization, to IDMs and fabless companies. To provide multi-fab sourcing and extended capacity for its customers, Tower Semiconductor owns two facilities in Israel (150mm and 200mm), two in the U.S. (200mm), two in Japan (200mm and 300mm) which it owns through its 51% holdings in TPSCo, shares a 300mm facility in Agrate, Italy, with ST as well as has access to a 300mm capacity corridor in Intel's New Mexico factory. For more information, please visit: www.towersemi.com. CONTACTS: Noit Levy | Investor Relations | +972 74 737 7556 | [email protected] This press release, including other projections with respect to our business and activities, includes forward-looking statements, which are subject to risks and uncertainties. Actual results may vary from those projected or implied by such forward-looking statements and you should not place any undue reliance on such forward-looking statements. Potential risks and uncertainties include, without limitation, risks and uncertainties associated with: (i) demand in our customers' end markets, (ii) reliance on acquisition and/or gaining additional capacity for growth, (iii) difficulties in achieving acceptable operational metrics and indices in the future as a result of operational, technological or process-related problems, (iv) identifying and negotiating with third-party buyers for the sale of any excess and/or unused equipment, inventory and/or other assets, (v) maintaining current key customers and attracting new key customers, (vi) over demand for our foundry services resulting in high utilization and its effect on cycle time, yield and on schedule delivery, as well as customers potentially being placed on allocation, which may cause customers to transfer their business to other vendors, (vii) financial results may fluctuate from quarter to quarter making it difficult to forecast future performance, (viii) our debt and other liabilities that may impact our financial position and operations, (ix) our ability to successfully execute acquisitions, integrate them into our business, utilize our expanded capacity and find new business, (x) fluctuations in cash flow, (xi) our ability to satisfy the covenants stipulated in our agreements with our debt holders, (xii) pending litigation, (xiii) meeting the conditions set in approval certificates and other regulations under which we received grants and/or royalties and/or any type of funding from the Israeli, US and/or Japan governmental agencies, (xiv) receipt of orders that are lower than the customer purchase commitments and/or failure to receive customer orders currently expected, (xv) possible incurrence of additional indebtedness, (xvi) effect of global recession, unfavorable economic conditions and/or credit crisis, (xvii) our ability to accurately forecast financial performance, which is affected by limited order backlog and lengthy sales cycles, (xviii) possible situations of obsolete inventory if forecasted demand exceeds actual demand when we create inventory before receipt of customer orders, (xix) the cyclical nature of the semiconductor industry and the resulting periodic overcapacity, fluctuations in operating results and future average selling price erosion, (xx) obtain financing for capacity acquisition related transactions, strategic and/or other growth or M&A opportunities, including for funding Agrate fab's significant 300mm capacity investments and acquisition or funding of equipment and other fixed assets associated with the capacity corridor transaction with Intel as announced in September 2023, in addition to other capacity expansion plans, and the possible unavailability of such financing and/or the availability of such financing on unfavorable terms, (xxi) operating our facilities at sufficient utilization rates necessary to generate and maintain positive and sustainable gross, operating and net profit, (xxii) the purchase of equipment and/or raw material (including purchase beyond our needs), the timely completion of the equipment installation, technology transfer and raising the funds therefor, (xxiii) product returns and defective products, (xxiv) our ability to maintain and develop our technology processes and services to keep pace with new technology, evolving standards, changing customer and end-user requirements, new product introductions and short product life cycles, (xxv) competing effectively, (xxvi) use of outsourced foundry services by both fabless semiconductor companies and integrated device manufacturers, (xxvii) our dependence on intellectual property rights of others, our ability to operate our business without infringing others' intellectual property rights and our ability to enforce our intellectual property against infringement, (xxviii) the fab3 landlord's alleged claims that the noise abatement efforts made thus far are not adequate under the terms of the amended lease that caused him to request a judicial declaration that there was a material non-curable breach of the lease and that he would be entitled to terminate the lease, as well the ability to extend such lease or acquire the real estate and obtain the required local and/or state approvals required to be able to continue operations beyond the current lease term, (xxix) retention of key employees and recruitment and retention of skilled qualified personnel, (xxx) exposure to inflation, currency rates (mainly the Israeli Shekel, the Japanese Yen and the Euro) and interest rate fluctuations and risks associated with doing business locally and internationally, as well fluctuations in the market price of our traded securities, (xxxi) meeting regulatory requirements worldwide, including export, environmental and governmental regulations, as well as risks related to international operations, (xxxii) potential engagement for fab establishment, joint venture and/or capital lease transactions for capacity enhancement in advanced technologies, including risks and uncertainties associated with Agrate fab establishment and the capacity corridor transaction with Intel as announced in September 2023, such as their qualification schedule, technology, equipment and process qualification, facility operational ramp-up, customer engagements, cost structure, required investments and other terms, which may require additional funding to cover their significant capacity investment needs and other payments, the availability of which funding cannot be assured on favorable terms, if at all, (xxxiii) potential liabilities, cost and other impact that may be incurred or occur due to reorganization and consolidation of fabrication facilities, including the impact of cessation of operations of our facilities, including with regard to our 6 inch facility, (xxxiv) potential security, cyber and privacy breaches, (xxxv) workforce that is not unionized which may become unionized, and/or workforce that is unionized and may take action such as strikes that may create increased cost and operational risks, (xxxvi) issuance of ordinary shares as a result of exercise and/or vesting of any of our employee stock options and/or restricted stock units, as well as any sale of shares by any of our shareholders, or any market expectation thereof, as well as issuance of additional employee stock options and/or restricted stock units, or any market expectation thereof, which may depress the market value of the Company and the price of the company's ordinary shares and in addition may impair our ability to raise future capital, and (xxxvii) climate change, business interruption due to flood, fire, pandemic, earthquake and other natural disasters, the security situation in Israel, global trade "war" and the current war in Israel, including potential inability to continue uninterrupted operations of the Israeli fabs, impact on global supply chain to and from the Israeli fabs, power interruptions, chemicals or other leaks or damages as a result of the war, absence of workforce due to military service as well as risk that certain countries will restrict doing business with Israeli companies, including imposing restrictions if hostilities in Israel or political instability in the region continue or exacerbate, and other events beyond our control. With respect to the current war in Israel, if instability in neighboring states occurs, Israel could be subject to additional political, economic, and military confines, and our Israeli facilities' operations could be materially adversely affected. Any current or future hostilities involving Israel or the interruption or curtailment of trade between Israel and its present trading partners, or a significant downturn in the economic or financial condition of Israel, could have a material adverse effect on our business, financial condition and results of operations. A more complete discussion of risks and uncertainties that may affect the accuracy of forward-looking statements included in this press release or which may otherwise affect our business is included under the heading "Risk Factors" in Tower's most recent filings on Forms 20-F and 6-K, as were filed with the Securities and Exchange Commission (the "SEC") and the Israel Securities Authority. Future results may differ materially from those previously reported. The Company does not intend to update, and expressly disclaims any obligation to update, the information contained in this release. (Financial tables follow) TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)(dollars in thousands) June 30, December 31, 2024 2023ASSETS CURRENT ASSETS Cash and cash equivalents$ 265,313 $ 260,664Short-term deposits 903,401 790,823Marketable securities 65,331 184,960Trade accounts receivable 165,161 154,067Inventories 276,082 282,688Other current assets 35,414 35,956Total current assets 1,710,702 1,709,158PROPERTY AND EQUIPMENT, NET 1,199,191 1,155,929GOODWILL AND OTHER INTANGIBLE ASSETS, NET 11,218 12,115OTHER LONG-TERM ASSETS, NET 41,056 41,315TOTAL ASSETS$ 2,962,167 $ 2,918,517LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Short-term debt$ 61,365 $ 58,952Trade accounts payable 123,782 139,128Deferred revenue and customers' advances 23,988 18,418Other current liabilities 81,040 60,340Total current liabilities 290,175 276,838LONG-TERM DEBT 126,715 172,611LONG-TERM CUSTOMERS' ADVANCES 16,118 25,710DEFERRED TAX AND OTHER LONG-TERM LIABILITIES 16,446 16,319TOTAL LIABILITIES 449,454 491,478TOTAL SHAREHOLDERS' EQUITY 2,512,713 2,427,039TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$ 2,962,167 $ 2,918,517 TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)(dollars and share count in thousands, except per share data) Three months ended June 30, March 31, June 30, 2024 2024 2023 REVENUES$ 351,181 $ 327,238 $ 357,191 COST OF REVENUES 264,259 254,632 270,674 GROSS PROFIT 86,922 72,606 86,517 OPERATING COSTS AND EXPENSES: Research and development 18,994 19,951 19,452 Marketing, general and administrative 19,050 18,670 17,387 Restructuring income, net * (6,270) -- (851) 31,774 38,621 35,988 OPERATING PROFIT 55,148 33,985 50,529 FINANCING AND OTHER INCOME, NET 7,710 3,984 3,924 PROFIT BEFORE INCOME TAX 62,858 37,969 54,453 INCOME TAX BENEFIT (EXPENSE), NET (6,108) 5,078 (5,747)NET PROFIT 56,750 43,047 48,706 Net loss (income) attributable to non-controlling interest (3,305) 1,587 2,484 NET PROFIT ATTRIBUTABLE TO THE COMPANY$ 53,445 $ 44,634 $ 51,190 BASIC EARNINGS PER SHARE$ 0.48 $ 0.40 $ 0.46 Weighted average number of shares 111,037 110,840 110,088 DILUTED EARNINGS PER SHARE$ 0.48 $ 0.40 $ 0.46 Weighted average number of shares 111,979 111,627 111,234 * Restructuring income, net resulted from the previously disclosed reorganization and restructure of our Japan operations during 2022. RECONCILIATION FROM GAAP NET PROFIT ATTRIBUTABLE TO THE COMPANY TO ADJUSTED NET PROFIT ATTRIBUTABLE TO THE COMPANY:GAAP NET PROFIT ATTRIBUTABLE TO THE COMPANY$ 53,445 $ 44,634 $ 51,190 Stock based compensation 7,781 6,761 6,923 Amortization of acquired intangible assets 448 448 491 Restructuring income, net ** (2,634) -- (250)ADJUSTED NET PROFIT ATTRIBUTABLE TO THE COMPANY$ 59,040 $ 51,843 $ 58,354 ADJUSTED EARNINGS PER SHARE: Basic$ 0.53 $ 0.47 $ 0.53 Diluted$ 0.53 $ 0.46 $ 0.52 ** Restructuring income, net resulted from the previously disclosed reorganization and restructure of our Japan operations during 2022, net of taxes. TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)(dollars and share count in thousands, except per share data) Six months ended June 30, 2024 2023 REVENUES$ 678,419 $ 712,802 COST OF REVENUES 518,891 530,568 GROSS PROFIT 159,528 182,234 OPERATING COSTS AND EXPENSES: Research and development 38,945 38,783 Marketing, general and administrative 37,720 36,016 Restructuring income, net * (6,270) (32,506) 70,395 42,293 OPERATING PROFIT 89,133 139,941 FINANCING AND OTHER INCOME, NET 11,694 10,921 PROFIT BEFORE INCOME TAX 100,827 150,862 INCOME TAX EXPENSE, NET (1,030) (20,788)NET PROFIT 99,797 130,074 Net income attributable to non-controlling interest (1,718) (7,482)NET PROFIT ATTRIBUTABLE TO THE COMPANY$ 98,079 $ 122,592 BASIC EARNINGS PER SHARE$ 0.88 $ 1.11 Weighted average number of shares 110,938 110,025 DILUTED EARNINGS PER SHARE$ 0.88 $ 1.10 Weighted average number of shares 111,964 111,153 * Restructuring income, net resulted from the previously disclosed reorganization and restructure of our Japan operations during 2022. RECONCILIATION FROM GAAP NET PROFIT ATTRIBUTABLE TO THE COMPANY TO ADJUSTED NET PROFIT ATTRIBUTABLE TO THE COMPANY:GAAP NET PROFIT ATTRIBUTABLE TO THE COMPANY$ 98,079 $ 122,592 Stock based compensation 14,542 13,371 Amortization of acquired intangible assets 896 990 Restructuring income, net ** (2,634) (11,224)ADJUSTED NET PROFIT ATTRIBUTABLE TO THE COMPANY$ 110,883 $ 125,729 ADJUSTED EARNINGS PER SHARE: Basic$ 1.00 $ 1.14 Diluted$ 0.99 $ 1.13 ** Restructuring income, net resulted from the previously disclosed reorganization and restructure of our Japan operations during 2022, net of taxes. TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIESCONSOLIDATED SOURCES AND USES REPORT (UNAUDITED)(dollars in thousands) Three months ended June 30, March 31, June 30, 2024 2024 2023 CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD$ 260,497 $ 260,664 $ 304,934 Net cash provided by operating activities 113,085 110,038 75,494 Investments in property and equipment, net (112,615) (98,018) (89,433)Debt repayment (10,439) (8,409) (10,093)Effect of Japanese Yen exchange rate change over cash balance (2,658) (2,665) (5,322)Deposits and marketable securities, net 17,443 (1,113) 42,615 CASH AND CASH EQUIVALENTS - END OF PERIOD$ 265,313 $ 260,497 $ 318,195 TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)(dollars in thousands) Three months ended June 30, March 31, June 30, 2024 2024 2023 CASH FLOWS - OPERATING ACTIVITIES Net profit for the period$ 56,750 $ 43,047 $ 48,706 Adjustments to reconcile net profit for the period to net cash provided by operating activities: Income and expense items not involving cash flows: Depreciation and amortization * 65,567 59,544 63,579 Effect of exchange rate differences and fair value adjustment 625 227 3,102 Other expense (income), net -- 5,993 (149)Changes in assets and liabilities: Trade accounts receivable (7,227) (6,716) (21,241)Other assets 3,141 (13,454) 2,114 Inventories 17,744 (23,703) 16,315 Trade accounts payable (19,741) 32,559 (24,712)Deferred revenue and customers' advances (2,091) (1,931) (10,723)Other current liabilities 274 16,868 (5,479)Other long-term liabilities (1,957) (2,396) 3,982 Net cash provided by operating activities 113,085 110,038 75,494 CASH FLOWS - INVESTING ACTIVITIES Investments in property and equipment, net (112,615) (98,018) (89,433)Deposits and marketable securities, net 17,443 (1,113) 42,615 Net cash used in investing activities (95,172) (99,131) (46,818)CASH FLOWS - FINANCING ACTIVITIES Debt repayment (10,439) (8,409) (10,093)Net cash used in financing activities (10,439) (8,409) (10,093)EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGE (2,658) (2,665) (5,322) INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 4,816 (167) 13,261 CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 260,497 260,664 304,934 CASH AND CASH EQUIVALENTS - END OF PERIOD$ 265,313 $ 260,497 $ 318,195 * Includes amortization of acquired intangible assets and stock based compensation in the amounts of $8,229, $7,209 and $7,414 for the 3 months periods ended June 30, 2024, March 31, 2024 and June 30, 2023, respectively. 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Silicon Labs Reports Second Quarter 2024 Results - Silicon Laboratories (NASDAQ:SLAB)

Wireless IoT leader delivers strong second-quarter growth AUSTIN, Texas, July 24, 2024 /PRNewswire/ -- Silicon Labs SLAB, a leader in secure, intelligent wireless technology for a more connected world, reported financial results for the second quarter, which ended June 29, 2024. "Silicon Labs delivered another quarter of strong sequential growth, driven by a combination of design wins ramping to production in several key growth areas, and end customers working down their excess inventory," said Matt Johnson, President and Chief Executive Officer at Silicon Labs. "Looking forward, we expect revenue growth to continue in the third quarter as excess inventory is further reduced, design wins continue ramping, and bookings improve." Second Quarter Financial Highlights Revenue was $145 millionIndustrial & Commercial revenue for the quarter was $88 millionHome & Life revenue for the quarter was $57 million Results on a GAAP basis: GAAP gross margin was 53%GAAP operating expenses were $125 millionGAAP operating loss was $48 millionGAAP diluted loss per share was $(2.56) Results on a non-GAAP basis, excluding the impact of stock compensation, amortization of acquired intangible assets, and certain other items as set forth in the below GAAP to Non-GAAP reconciliation tables were as follows: Non-GAAP gross margin was 53%Non-GAAP operating expenses were $102 millionNon-GAAP operating loss was $25 millionNon-GAAP diluted loss per share was $(0.56) Business Highlights Due to popular demand, Silicon Labs is expanding its fifth annual Works With Developers Conference this fall with live events in San Jose, Hyderabad, and Shanghai. Each event's agenda is tailored to regional market needs and covers key IoT topics like Matter, Smart Cities, AI and Machine Learning, and Security.Announced Silicon Labs' new xG22E family of wireless SoCs, its first-ever family designed to operate within the ultra-low power envelope required for battery-free, energy harvesting applications. The new family consists of the BG22E, MG22E, and FG22E. As Silicon Labs' most energy-efficient SoCs to date, all three SoCs will enable IoT device makers to build high-performance, Bluetooth Low Energy (LE), 802.15.4-based, or proprietary 2.4GHz. wireless devices for battery-optimized and battery-free devices that can harvest energy from external sources in their environments like indoor or outdoor ambient light, ambient radio waves, and kinetic motion. Business Outlook The company expects third-quarter revenue to be between $160 to $170 million. The company also estimates the following results: On a GAAP basis: GAAP gross margin to be between 54% to 56%GAAP operating expenses of approximately $123 million to $125 millionGAAP diluted loss per share per share between $(0.95) to $(1.25) On a non-GAAP basis, excluding the impact of stock compensation, amortization of acquired intangible assets, and certain other items as set forth in the reconciliation tables: Non-GAAP gross margin to be between 54% to 56%Non-GAAP operating expenses of approximately $101 million to $103 millionNon-GAAP diluted loss per share between $(0.10) to $(0.30) Earnings Webcast and Conference Call Silicon Labs will host an earnings conference call to discuss the quarterly results and answer questions at 7:30 am CDT today. An audio webcast will be available on Silicon Labs' website (www.silabs.com) under Investor Relations. In addition, the company will post an audio recording of the event at investor.silabs.com and make a replay available through August 24, 2024. About Silicon Labs Silicon Labs SLAB is a leader in secure, intelligent wireless technology for a more connected world. Our integrated hardware and software platform, intuitive development tools, thriving ecosystem, and robust support make us an ideal long-term partner in building advanced industrial, commercial, home and life applications. We make it easy for developers to solve complex wireless challenges throughout the product lifecycle and get to market quickly with innovative solutions that transform industries, grow economies, and improve lives. silabs.com Forward-Looking Statements This press release contains forward-looking statements based on Silicon Labs' current expectations. The words "believe", "estimate", "expect", "intend", "anticipate", "plan", "project", "will", and similar phrases as they relate to Silicon Labs are intended to identify such forward-looking statements. These forward-looking statements reflect the current views and assumptions of Silicon Labs and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Among the factors that could cause actual results to differ materially from those in the forward-looking statements are the following: the competitive and cyclical nature of the semiconductor industry; the challenging macroeconomic environment, including disruptions in the financial services industry; geographic concentration of manufacturers, assemblers, test service providers and customers in Asia that subjects Silicon Labs' business and results of operations to risks of natural disasters, epidemics or pandemics, war and political unrest; risks that demand and the supply chain may be adversely affected by military conflict (including in the Middle East, and between Russia and Ukraine), terrorism, sanctions or other geopolitical events globally (including in the Middle East, and conflict between Taiwan and China); risks that Silicon Labs may not be able to maintain its historical growth; quarterly fluctuations in revenues and operating results; difficulties developing new products that achieve market acceptance; risks associated with international activities (including trade barriers, particularly with respect to China); intellectual property litigation risks; risks associated with acquisitions and divestitures; product liability risks; difficulties managing and/or obtaining sufficient supply from Silicon Labs' distributors, manufacturers and subcontractors; dependence on a limited number of products; absence of long-term commitments from customers; inventory-related risks; difficulties managing international activities; risks that Silicon Labs may not be able to manage strains associated with its growth; credit risks associated with its accounts receivable; dependence on key personnel; stock price volatility; the impact of COVID-19 on the U.S. and global economy; debt-related risks; capital-raising risks; the timing and scope of share repurchases and/or dividends; average selling prices of products may decrease significantly and rapidly; information technology risks; cyber-attacks against Silicon Labs' products and its networks; risks associated with any material weakness in our internal controls over financial reporting; and other factors that are detailed in the SEC filings of Silicon Laboratories Inc. Silicon Labs disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. References in this press release to Silicon Labs shall mean Silicon Laboratories Inc. Note to editors: Silicon Laboratories, Silicon Labs, the "S" symbol, and the Silicon Labs logo are trademarks of Silicon Laboratories Inc. All other product names noted herein may be trademarks of their respective holders. Silicon Laboratories Inc. Condensed Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) Three Months Ended Six Months Ended June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Revenues $ 145,367 $ 244,866 $ 251,742 $ 491,653 Cost of revenues 68,784 101,091 120,090 194,018 Gross profit 76,583 143,775 131,652 297,635 Operating expenses: Research and development 85,909 85,902 166,559 175,298 Selling, general and administrative 38,695 40,706 72,248 85,597 Operating expenses 124,604 126,608 238,807 260,895 Operating income (loss) (48,021) 17,167 (107,155) 36,740 Other income (expense): Interest income and other, net 2,790 7,780 5,522 12,616 Interest expense (263) (1,596) (772) (3,252) Income (loss) before income taxes (45,494) 23,351 (102,405) 46,104 Provision for income taxes 36,663 12,338 36,278 20,091 Equity-method loss -- (57) -- (1,090) Net income (loss) $ (82,157) $ 10,956 $ (138,683) $ 24,923 Earnings (loss) per share: Basic $ (2.56) $ 0.35 $ (4.33) $ 0.78 Diluted $ (2.56) $ 0.33 $ (4.33) $ 0.75 Weighted-average common shares outstanding: Basic 32,124 31,614 32,018 31,786 Diluted 32,124 32,926 32,018 33,339 Non-GAAP Financial Measurements In addition to the GAAP results provided throughout this document, Silicon Labs has provided non-GAAP financial measurements on a basis excluding non-cash and other charges and benefits. Details of these excluded items are presented in the tables below, which reconcile the GAAP results to non-GAAP financial measurements. The non-GAAP financial measurements do not replace the presentation of Silicon Labs' GAAP financial results. These measurements provide supplemental information to assist management and investors in analyzing Silicon Labs' financial position and results of operations. Silicon Labs has chosen to provide this information to investors to enable them to perform meaningful comparisons of past, present and future operating results and as a means to emphasize the results of core on-going operations. Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands, except per share data) Three Months Ended June 29, 2024 Non-GAAP Income Statement Items GAAP Measure GAAP Percent of Revenue Stock Compensation Expense Intangible Asset Amortization Termination Costs Non-GAAP Measure Non-GAAP Percent of Revenue Revenues $ 145,367 Gross profit 76,583 52.7 % $ 412 $ -- $ -- $ 76,995 53.0 % Research and development 85,909 59.1 % 10,217 6,061 902 68,729 47.3 % Selling, general and administrative 38,695 26.6 % 5,215 19 106 33,355 22.9 % Operating expenses 124,604 85.7 % 15,432 6,080 1,008 102,084 70.2 % Operating income (loss) (48,021) (33.0 %) 15,844 6,080 1,008 (25,089) (17.3 %) Three Months Ended June 29, 2024 Non-GAAP Loss Per Share GAAP Measure Stock Compensation Expense* Intangible Asset Amortization* Termination Costs* Income Tax Adjustments Non- GAAP Measure Net income (loss) $ (82,157) $ 15,844 $ 6,080 $ 1,008 $ 41,176 $ (18,049) Diluted shares outstanding 32,124 32,124 Diluted loss per share $ (2.56) $ (0.56) * Represents pre-tax amounts Unaudited Forward-Looking Statements Regarding Business Outlook (In millions, except per share data) Three Months Ended September 28, 2024 Business Outlook GAAP Measure Non-GAAP Adjustments** Non-GAAP Measure Gross margin 54% to 56% -- % 54% to 56% Operating expenses $123 to $125 $(22) $101 to $103 Diluted loss per share $(0.95) to $(1.25) $0.85 to $0.95 $(0.10) to $(0.30) ** Non-GAAP adjustments include the following estimates: stock compensation expense of $16.8 million, intangible asset amortization of $5.4 million, and the application of a long-term non-GAAP tax rate of 20%. Silicon Laboratories Inc. Condensed Consolidated Balance Sheets (In thousands, except per share data) (Unaudited) June 29, 2024 December 30, 2023 Assets Current assets: Cash and cash equivalents $ 240,834 $ 227,504 Short-term investments 98,336 211,720 Accounts receivable, net 41,212 29,295 Inventories 166,079 194,295 Prepaid expenses and other current assets 53,585 75,117 Total current assets 600,046 737,931 Property and equipment, net 139,397 145,890 Goodwill 376,389 376,389 Other intangible assets, net 47,374 59,533 Other assets, net 86,781 123,313 Total assets $ 1,249,987 $ 1,443,056 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 39,295 $ 57,498 Revolving line of credit -- 45,000 Deferred revenue and returns liability 3,323 2,117 Other current liabilities 57,495 58,955 Total current liabilities 100,113 163,570 Other non-current liabilities 56,845 70,804 Total liabilities 156,958 234,374 Commitments and contingencies Stockholders' equity: Preferred stock - $0.0001 par value; 10,000 shares authorized; no shares issued -- -- Common stock - $0.0001 par value; 250,000 shares authorized; 32,289 and 31,897 shares issued and outstanding at June 29, 2024 and December 30, 2023, respectively 3 3 Additional paid-in capital 39,232 16,973 Retained earnings 1,054,048 1,192,731 Accumulated other comprehensive loss (254) (1,025) Total stockholders' equity 1,093,029 1,208,682 Total liabilities and stockholders' equity $ 1,249,987 $ 1,443,056 Silicon Laboratories Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) Six Months Ended June 29, 2024 July 1, 2023 Operating Activities Net income (loss) $ (138,683) $ 24,923 Adjustments to reconcile net income to net cash used in operating activities: Depreciation of property and equipment 13,152 12,441 Amortization of other intangible assets 12,160 12,904 Amortization of debt issuance costs -- 960 Stock-based compensation expense 29,455 31,377 Equity-method loss -- 1,090 Deferred income taxes 29,784 (6,403) Changes in operating assets and liabilities: Accounts receivable (11,918) (26,819) Inventories 28,123 (45,064) Prepaid expenses and other assets 20,723 32,963 Accounts payable (19,341) (30,003) Other current liabilities and income taxes (13,624) (26,220) Deferred revenue and returns liability 1,206 4,326 Other non-current liabilities (6,703) (1,975) Net cash used in operating activities (55,666) (15,500) Investing Activities Purchases of marketable securities (17,700) (81,427) Sales of marketable securities 34,538 339,555 Maturities of marketable securities 97,458 171,691 Purchases of property and equipment (5,577) (13,462) Proceeds from sale of equity investment 12,382 -- Purchases of other assets -- (215) Net cash provided by investing activities 121,101 416,142 Financing Activities Proceeds from revolving line of credit -- 80,000 Payments on debt (45,000) (536,124) Repurchases of common stock -- (201,095) Payment of taxes withheld for vested stock awards (15,213) (16,310) Proceeds from the issuance of common stock 8,108 7,785 Net cash used in financing activities (52,105) (665,744) Increase (decrease) in cash and cash equivalents 13,330 (265,102) Cash and cash equivalents at beginning of period 227,504 499,915 Cash and cash equivalents at end of period $ 240,834 $ 234,813 View original content to download multimedia:https://www.prnewswire.com/news-releases/silicon-labs-reports-second-quarter-2024-results-302204803.html SOURCE Silicon Labs Market News and Data brought to you by Benzinga APIs

Check Point Software Announces New CEO & Reports Strong 2024 Second Quarter Results - Check Point Software (NASDAQ:CHKP)

Nadav Zafrir, renowned Cyber Security leader, will assume CEO role December 2024 Gil Shwed, Founder & CEO, will transition to Executive Chairman REDWOOD CITY, Calif., July 24, 2024 (GLOBE NEWSWIRE) -- Check Point® Software Technologies Ltd. CHKP, today announced its financial results for the second quarter ended June 30, 2024, and the appointment of Nadav Zafrir as Check Point Chief Executive Officer. Second Quarter 2024: Total Revenues: $627 million, a 7 percent increase year over yearSecurity Subscription Revenues: $272 million, a 14 percent increase year over yearGAAP Operating Income: $209 million, representing 33 percent of revenuesNon-GAAP Operating Income: $265 million, representing 42 percent of revenuesGAAP EPS: $1.74, a 3 percent increase year over yearNon-GAAP EPS: $2.17, an 8 percent increase year over year "I'm excited to share great news. Check Point delivered an outstanding second quarter as customers continued to embrace the AI driven, cloud delivered Infinity Platform to achieve the highest levels of security," said Gil Shwed, Check Point founder and CEO. "The success of Infinity during the quarter was underscored by its double-digit growth and significant deals with Fortune Global 500 organizations." New CEO Appointment: For the past 10 years, Nadav Zafrir has been a co-founder and managing partner at Team8, a global venture creation and venture capital fund. Team8 establishes and invests in companies focused on cyber security, Data & AI, Fintech and digital health. He built, invested and chaired 17 cyber security companies in addition to dozens of other technology companies he has consulted and mentored. He previously served 25 years in the IDF, retiring as a Brigadier General. Since 2019, he has served as Chairman of the Board of SolarEdge Technologies, a Nasdaq traded smart energy company. Mr. Zafrir will assume the CEO role in December 2024 and will join Check Point's Board of Directors upon shareholder approval at Check Point's next Annual General Meeting. Gil Shwed will become Executive Chairman of the Board. "We are concluding a thorough CEO search process after examining candidates from around the world and found the perfect individual. Nadav has been a key leader in the global cyber security ecosystem for over a decade. Having lived in New York and Tel Aviv, he became one of the most respected figures within the global CISO community. He established and led multiple cyber security companies and partnered with the world's largest security vendors. I admire his achievements and leadership skills and I am excited about his appointment, and believe he is the right leader to take Check Point to new heights," concluded Mr. Shwed. "I am honored to join Check Point, a pioneer that shaped modern cyber security, and a hotbed for entrepreneurship," said Nadav Zafrir. "Over the last decade, I've collaborated with global cyber security leaders and teams, witnessing firsthand their incredible efforts to safeguard global networks from sophisticated attackers. I am in awe of the work of security practitioners and their organizations deserve the best security. In our turbulent world, on the brink of another acceleration point as AI redefines our lives, cutting-edge cyber security is more critical than ever. Check Point is uniquely positioned to lead development of the next stage of security for our complex world. I look forward to working with the company's accomplished leadership team and Gil to write the next chapter in Check Point's growth," concluded Mr. Zafrir. Financial Highlights for the Second Quarter of 2024: Total Revenues: $627 million compared to $589 million in the second quarter of 2023, a 7 percent increase year over year.GAAP Operating Income: $209 million compared to $221 million in the second quarter of 2023.Non-GAAP Operating Income: $265 million compared to $263 million in the second quarter of 2023.GAAP Taxes on Income: $36 million compared to $41 million in the second quarter of 2023.GAAP Net Income: $197 million compared to $202 million in the second quarter of 2023.Non-GAAP Net Income: $246 million compared to $238 million in the second quarter of 2023.GAAP Earnings Per Diluted Share: $1.74 compared to $1.70 in the second quarter of 2023, a 3 percent increase year over year.Non-GAAP Earnings Per Diluted Share: $2.17 compared to $2.00 in the second quarter of 2023, an 8 percent increase year over year.Deferred Revenues: As of June 30, 2024, deferred revenues were $1,818 million compared to $1,774 million as of June 30, 2023, a 2 percent increase year over year.Cash Balances, Marketable Securities and Short-Term Deposits: $3,058 million as of June 30, 2024, compared to $3,515 million as of June 30, 2023.Cash Flow: Cash flow from operations of $200 million compared to $191 million in the second quarter of 2023.Share Repurchase Program: During the second quarter of 2024, the company repurchased approximately 2.1 million shares at a total cost of approximately $325 million. On July 11, 2024, the company announced that the board of directors authorized a $2 billion expansion of the company's on-going share repurchase program. Under the extended share repurchase program, Check Point will be authorized to continue repurchasing its shares up to $325 million each quarter. For information regarding the non-GAAP financial measures discussed in this release, as well as a reconciliation of such non-GAAP financial measures to the most directly comparable GAAP financial measures, please see "Use of Non-GAAP Financial Information" and "Reconciliation of GAAP to Non-GAAP Financial Information." Conference Call and Webcast Information Check Point will host a conference call with the investment community on July 24, 2024, 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: KeyBanc Technology Leadership Forum August 4-6, 2024, Vail, CO - Fireside Chat & 1x1'sOppenheimer 27th Annual Virtual Technology, Internet & Communications Conference August 12, 2024 - Virtual 1x1'sDeutsche Bank 2024 Technology Conference August 28 - 29, 2024, Dana Point, CA - 1x1'sCiti 2024 Global Technology Conference September 3-5, 2024, New York, NY - 1x1'sGoldman Sachs 2024 Communicopia + Technology Conference September 9, 2024, San Francisco, CA - Fireside Chat &1x1'sPiper Sandler 2023 Growth Frontiers Conference September 10-11, 2024, Nashville, TN - 1x1's Members of Check Point's management team anticipate attending these conferences and events to discuss the latest company strategies and initiatives. Check Point'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. To follow this and other Check Point news visit: LinkedIn: https://www.linkedin.com/company/check-point-software-technologiesYouTube: http://www.youtube.com/user/CPGlobalBlog: http://blog.checkpoint.com/X (Formerly known as Twitter): http://www.twitter.com/checkpointsw About Check Point Software Technologies Ltd. Check Point Software Technologies Ltd. (www.checkpoint.com) is a leading AI-powered, cloud-delivered cyber security platform provider protecting over 100,000 organizations worldwide. Check Point leverages the power of AI everywhere to enhance cyber security efficiency and accuracy through its Infinity Platform, with industry-leading catch rates enabling proactive threat anticipation and smarter, faster response times. The comprehensive platform includes cloud-delivered technologies consisting of Check Point Harmony to secure the workspace, Check Point CloudGuard to secure the cloud, Check Point Quantum to secure the network, and Check Point Infinity Core Services for collaborative security operations and services. 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, the appointment of our new CEO, the transition of our CEO into the role of Executive Chairman and our participation in investor conferences and events during the third quarter of 2024. Our expectations and beliefs regarding these matters may not materialize, and actual results or events in the future are subject to risks and uncertainties that could cause actual results or events to differ materially from those projected. These risks include our ability to continue to develop platform capabilities and solutions; customer acceptance and purchase of our existing solutions and new solutions; the market for IT security continuing to develop; competition from other products and services; the appointment of our new CEO, the transition of our CEO into the role of Executive Chairman; and general market, political, economic, and business conditions, including acts of terrorism or war. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in our filings with the Securities and Exchange Commission, including our Annual Report on Form 20-F filed with the Securities and Exchange Commission on April 2, 2024. The forward-looking statements in this press release are based on information available to Check Point as of the date hereof, and Check Point disclaims any obligation to update any forward-looking statements, except as required by law. Use of Non-GAAP Financial Information In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Check Point uses non-GAAP measures of operating income, net income, and earnings per diluted share, which are adjustments from results based on GAAP to exclude, as applicable, stock-based compensation expenses, amortization of intangible assets and acquisition related expenses and the related tax affects. Check Point's management believes the non-GAAP financial information provided in this release is useful to investors' understanding and assessment of Check Point's ongoing core operations and prospects for the future. Historically, Check Point has also publicly presented these supplemental non-GAAP financial measures to assist the investment community in visualizing the Company "through the eyes of management," and thereby enhance understanding of its operating performance. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of the non-GAAP financial measures discussed in this press release to the most directly comparable GAAP financial measures is included with the financial statements contained in this press release. Management uses both GAAP and non-GAAP information in evaluating and operating the business internally and has determined that it is important to provide this information to investors. CHECK POINT SOFTWARE TECHNOLOGIES LTD. CONSOLIDATED STATEMENT OF INCOME (Unaudited, in millions, except per share amounts) Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023Revenues: Products and licenses$118.1 $116.9 $218.4 $224.9Security subscriptions 271.7 238.9 535.1 467.1Total revenues from products and security subscriptions 389.8 355.8 753.5 692.0 Software updates and maintenance 237.6 232.9 472.7 462.9Total revenues 627.4 588.7 1,226.2 1,154.9 Operating expenses: Cost of products and licenses 24.0 22.6 43.9 48.8Cost of security subscriptions 16.8 13.6 33.3 25.9Total cost of products and security subscriptions 40.8 36.2 77.2 74.7Cost of Software updates and maintenance 31.6 27.3 60.3 54.1Amortization of technology 5.8 2.4 11.6 5.2Total cost of revenues 78.2 65.9 149.1 134.0 Research and development 97.1 87.4 196.3 178.9Selling and marketing 215.7 185.6 421.9 363.3General and administrative 27.1 28.4 55.7 57.5Total operating expenses 418.1 367.3 823.0 733.7 Operating income 209.3 221.4 403.2 421.2Financial income, net 23.7 21.3 46.3 40.4Income before taxes on income 233.0 242.7 449.5 461.6Taxes on income 35.6 40.7 68.2 75.5Net income$197.4 $202.0 $381.3 $386.1 Basic earnings per share$1.78 $1.71 $3.42 $3.23Number of shares used in computing basic earnings per share 111.1 118.0 111.6 119.6 Diluted earnings per share$1.74 $1.70 $3.34 $3.20Number of shares used in computing diluted earnings per share 113.6 119.2 114.2 120.8 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, 2024 2023 2024 2023 Revenues $627.4 $588.7 $1,226.2 $1,154.9Non-GAAP operating income 265.1 263.1 517.1 501.5Non-GAAP net income 246.0 238.3 480.5 456.2Diluted Non-GAAP Earnings per share $2.17 $2.00 $4.21 $3.78Number of shares used in computing diluted Non-GAAP earnings per share 113.6 119.2 114.2 120.8 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, 2024 2023 2024 2023 GAAP operating income $209.3 $221.4 $403.2 $421.2 Stock-based compensation (1) 39.3 36.2 80.9 68.9 Amortization of intangible assets and acquisition related expenses (2) 16.5 5.5 33.0 11.4 Non-GAAP operating income $265.1 $263.1 $517.1 $501.5 GAAP net income $197.4 $202.0 $381.3 $386.1 Stock-based compensation (1) 39.3 36.2 80.9 68.9 Amortization of intangible assets and acquisition related expenses (2) 16.5 5.5 33.0 11.4 Taxes on the above items (3) (7.2) (5.4) (14.7) (10.2)Non-GAAP net income $246.0 $238.3 $480.5 $456.2 Diluted GAAP earnings per share $1.74 $1.70 $3.34 $3.20 Stock-based compensation (1) 0.34 0.30 0.70 0.57 Amortization of intangible assets and acquisition related expenses (2) 0.15 0.05 0.30 0.10 Taxes on the above items (3) (0.06) (0.05) (0.13) (0.09)Diluted Non-GAAP earnings per share $2.17 $2.00 $4.21 $3.78 Number of shares used in computing diluted Non-GAAP earnings per share 113.6 119.2 114.2 120.8 (1) Stock-based compensation: Cost of products and licenses $0.1 $0.1 $0.2 $0.2 Cost of software updates and maintenance 2.2 1.8 4.4 3.0 Research and development 13.6 11.8 28.3 22.4 Selling and marketing 14.9 14.8 30.8 26.1 General and administrative 8.5 7.7 17.2 17.2 39.3 36.2 80.9 68.9 (2) Amortization of intangible assets and acquisition related expenses: Amortization of technology-cost of revenues 5.8 2.4 11.6 5.2 Research and development 1.6 2.0 3.2 3.9 Selling and marketing 9.1 1.1 18.2 2.3 16.5 5.5 33.0 11.4 (3) Taxes on the above items (7.2) (5.4) (14.7) (10.2) Total, net $ 48.6 $ 36.3 $ 99.2 $ 70.1 CHECK POINT SOFTWARE TECHNOLOGIES LTD. CONDENSED CONSOLIDATED BALANCE SHEET DATA (In millions) ASSETS June 30, December 31, 2024 (Unaudited) 2023 (Audited)Current assets: Cash and cash equivalents $572.5 $537.7Marketable securities and short-term deposits 1,087.6 992.3Trade receivables, net 456.7 657.7Prepaid expenses and other current assets 75.5 70.0Total current assets 2,192.3 2,257.7 Long-term assets: Marketable securities 1,397.8 1,429.7Property and equipment, net 80.8 80.4Deferred tax asset, net 88.8 81.8Goodwill and other intangible assets, net 1,721.5 1,748.5Other assets 100.2 97.4Total long-term assets 3,389.1 3,437.8 Total assets $5,581.4 $5,695.5 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Deferred revenues $1,341.9 $1,413.8 Trade payables and other accrued liabilities 445.0 502.3 Total current liabilities 1,786.9 1,916.1 Long-term liabilities: Long-term deferred revenues 476.5 493.9 Income tax accrual 453.5 436.1 Other long-term liabilities 36.0 28.4 966.0 958.4 Total liabilities 2,752.9 2,874.5 Shareholders' equity: Share capital 0.8 0.8 Additional paid-in capital 2,933.0 2,732.5 Treasury shares at cost (13,619.0) (13,041.2)Accumulated other comprehensive gain (35.7) (39.2)Retained earnings 13,549.4 13,168.1 Total shareholders' equity 2,828.5 2,821.0 Total liabilities and shareholders' equity $5,581.4 $5,695.5 Total cash and cash equivalents, marketable securities and short-term deposits $3,057.9 $2,959.7 CHECK POINT SOFTWARE TECHNOLOGIES LTD. SELECTED CONSOLIDATED CASH FLOW DATA (Unaudited, in millions) Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Cash flow from operating activities: Net income$197.4 $202.0 $381.3 $386.1 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation of property and equipment 5.2 5.3 12.5 12.2 Amortization of intangible assets 13.5 2.9 27.0 6.2 Stock-based compensation 39.3 36.2 80.9 68.9 Realized loss on marketable securities - 0.7 - 0.7 Decrease (increase) in trade and other receivables, net (75.0) (59.9) 190.4 225.2 Increase (decrease) in deferred revenues, trade payables and other accrued liabilities 18.9 (2.2) (121.7) (129.3)Deferred income taxes, net 0.6 6.0 (9.5) 6.6 Net cash provided by operating activities 199.9 191.0 560.9 576.6 Cash flow from investing activities: Investment in property and equipment (6.4) (3.6) (12.9) (7.8)Net cash used in investing activities (6.4) (3.6) (12.9) (7.8) Cash flow from financing activities: Proceeds from issuance of shares upon exercise of options 158.6 51.0 204.2 85.1 Purchase of treasury shares (325.0) (324.9) (650.0) (649.8)Payments related to shares withheld for taxes (12.1) (6.7) (13.2) (7.7)Net cash used in financing activities (178.5) (280.6) (459.0) (572.4) Unrealized gain (loss) on marketable securities, net 7.6 (10.7) 9.2 15.9 Increase (decrease) in cash and cash equivalents, marketable securities and short-term deposits 22.6 (103.9) 98.2 12.3 Cash and cash equivalents, marketable securities and short-term deposits at the beginning of the period 3,035.3 3,619.4 2,959.7 3,503.2 Cash and cash equivalents, marketable securities and short-term deposits at the end of the period$3,057.9 $3,515.5 $3,057.9 $ 3,515.5 ­ INVESTOR CONTACT: Kip E. Meintzer Check Point Software Technologies +1.650.628.2040 [email protected] MEDIA CONTACT: Gil Messing Check Point Software Technologies +1.650.628.2260 [email protected] Market News and Data brought to you by Benzinga APIs