printmgr file

CHECK POINT SOFTWARE
FORM 20-F DFN ON-BOA
ˆ200FDMqk04ivnVJ71Š
200FDMqk04ivnVJ7
RR Donnelley ProFile wcrdoc1
10.10.12 WCRjacis0in 26-Mar-2012 21:28 EST
229899 TX 48 3*
PAL
09-Apr-2012 13:21 EST CURR
PS PMT 1C
Our future revenues and operating results are uncertain and may fluctuate from quarter to quarter and from
year to year due to several factors, as described above in “Item 3 – Key Information” under the caption “Risk
Factors – Risks Relating to Our Business and Our Market – Our quarterly operating results are likely to fluctuate,
which could cause us to miss expectations about these results and cause the trading price of our ordinary shares
to decline.”
Historically, our revenues have reflected seasonal fluctuations related to the year-end purchasing cycles of
many users of our products. We believe that we will continue to encounter seasonality for the foreseeable future.
Our expense levels are based, in part, on expectations as to future revenues. If our revenue levels are below
expectations, our operating results are likely to be adversely affected, since most of our expenses are not variable.
As a result, we believe that period-to-period comparisons of our results of operations are not necessarily
meaningful and should not be relied upon as indications of future performance. Due to the above, it is likely that
in some future quarters, our operating results may be below the expectations of public market analysts and
investors. In this event, the price of our ordinary shares would likely decline significantly.
New Accounting Pronouncements
In May 2011, the Financial Accounting Standards Board issued guidance that changed the requirement for
presenting “Comprehensive Income” in the consolidated financial statements. The update requires an entity to
present the components of other comprehensive income either in a single continuous statement of comprehensive
income or in two separate but consecutive statements. The currently available option to disclose the components
of other comprehensive income within the statement of stockholders’ equity will no longer be available. The
update is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011
and should be applied retrospectively. The adoption of the standard will have no impact on our financial position
or results of operations, but will result in a change in the presentation of our basic consolidated financial
statements.
In September 2011, the FASB amended the guidance on the annual testing of goodwill for impairment. The
amended guidance will allow companies to assess qualitative factors to determine if it is more likely than not that
goodwill might be impaired and whether it is necessary to perform the two-step goodwill impairment test
required under current accounting standards. The guidance is effective for annual and interim goodwill
impairment tests performed for fiscal years beginning after December 15, 2011, with early adoption permitted.
The adoption of this guidance is not expected to have a material impact on the Company’s financial statements.
In May 2011, the FASB issued ASU 2011-04 Amendments to Achieve Common Fair Value Measurement
and Disclosure Requirements in U.S. GAAP and IFRSs, codified in ASC 820 "Fair Value Measurement". The
guidance requires an entity to provide a consistent definition of fair value to ensure that the fair value
measurement and disclosure requirements are similar between U.S. GAAP and International Financial Reporting
Standards. The guidance changes certain fair value measurement principles and enhances the disclosure
requirements particularly for Level 3 fair value measurements, and will become effective for the Company
beginning January 1, 2012. We do not expect the adoption of this new guidance to have a material impact on its
financial statements.
Liquidity and Capital Resources
During 2009, 2010 and 2011, we financed our operations through cash generated from operations. Our total
cash and cash equivalents, short-term investments, and long-term interest bearing investments, were $1,847.0
million as of December 31, 2009, $2,414.9 million as of December 31, 2010 and $2,879.4 million as of
December 31, 2011. Our cash and cash equivalents and short-term investments were $884.0 million as of
December 31, 2009, $1,089.4 million as of December 31, 2010 and $1,359.5 million as of December 31, 2011.
Our long-term interest bearing investments were $963.0 million as of December 31, 2009, $1,325.4 million as of
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