Check Point Software Technologies Ltd.

Greetings. Welcome to Check Point Software Technologies' second quarter 2019 earnings goal. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, Please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Kip Meintzer, Head of Global Investor Relations. Thank you. You may begin.

Thank you. I'd like to thank all of you for joining us today for Checkpoint Second Quarter 2019 Financial Results. Joining me today on the call are Gil Shwed, Founder and CEO of along with our CFO and COO Tal Payne. As a reminder, this call is webcast live on our website and is recorded for replay. To access the live webcast and replay information, please visit the company's website at Checkpoint.com. For your convenience, the conference call replay will be available through July 31st. If you'd like to reach us after the call, please contact Investor Relations by email at Kip at Checkpoint.com. Before we begin with management's presentation, I'd like to highlight the following. During the course of the presentation, checkpoints 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 21 of the Securities and Exchange Act of 1934 include, but are not limited to, statements related to checkpoints expectations regarding business, financial performance, and customers. The introduction of new products and programs and the success of those products and programs The environment for security threats and trends in the market Our strategy and focus areas Demand for our solutions Our business and financial outlook, including our guidance for Q3 2019 Because these statements pertain to future events, they are subject to various risks and uncertainties Actual results could differ materially from checkpoints, current expectations, and beliefs Factors that could cause or contribute to such differences are contained in Check Point's earnings press release issued on July 24, 2019, which is available on our website. And other risk factors, which are included in Check Point's annual report on Form 20F for the year ended December 31, 2018, which is on file with the Securities and Exchange Commission. Check Point assumes no obligation to update information. Concerning its expectations or beliefs, accept as required by law. In our press release, which has been posted on our website, we present GAAP and non-GAAP results, along with the reconciliation of such results, as well as the reasons for our presentation of non-GAAP information. Now with that, I'd like to turn the call over to Tal Payne for a review of the financial results.

Thank you, Kip. Good morning, good afternoon to everyone joining us on the call today. I'm pleased to begin the review of the second quarter. Revenues for the quarter increased by 4% year-over-year to $488 million, and our non-GAAP EPS reached $1.38, both slightly above the mid-hour guidance. 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 look at the financial highlights for the quarter. Product and security subscription revenues were $270 million, a 5% increase year-over-year. Our subscription revenues continue to be strong with 13% growth, reaching $149 million. Our software update and maintenance revenues increased to $218 million, representing 4% growth year-over-year. The growth in our subscription revenues is driven by our advanced solutions, mainly Sambla Zero-Day Threat Prevention, Cloud, and Infinity Solutions. Deferred revenues as of June 30, 2019 reached $1,286,000,000, a growth of $128,000,000, or 11% year-over-year. Revenue distribution by geography for the quarter was as follows. 48% of revenues came from America, 40% of revenues came from Europe, Middle East and Africa region, and the remaining 12% came from Asia Pacific. Since the beginning of the year, I remind you, Middle East and Africa are part of the Europe, Middle East and Africa region, while before it was part of Asia Pacific, Middle East and Africa region. The revenue distribution by geography for Q2 last year After the reclassification would have been 48% of the revenues from America, 41% of revenues from Europe, Middle East and Africa region and the remaining 11% from Asia Pacific. You can see our region had a growth this quarter. We continue to invest in our sales force and marketing in order to execute our growth strategy. As a result, non-GAAP operating margins for the quarter were 50%, same as previous quarter, Q1, and in line with our plans. Our financial income this quarter reached $21 million. Since the beginning of the year, we see a change in trend, with a decrease in our portfolio yield as a result of lower interest rate expectations in the US. Hence, our financial income for the next quarter is expected to be around $20 million. Effective non-GAAP tax rate for this quarter was 19%, similar to the first quarter of this year. GAAP net income for the quarter was $186 million, or $1.21 per diluted share. Non-GAAP net income for the quarter was $211 million, or $1.38 per diluted share, two cents above the midpoint of our guidance. Our cash balances as of June 30, 2019 were $4,110,000,000 compared to $4,042,000,000 last year. Our operating cash flow was $233,000,000 compared to $213,000,000 in the second quarter of 2018, a 9% increase year-over-year. Collection from customers continues to be very strong. Our operating cash flow includes tax, and Balance Sheet Hedge Transactions, which can fluctuate from quarter to quarter. Excluding these items, our operating cash flow increased by 4%. During the quarter, we utilized the maximum quarterly buyback authorized and purchased 2.8 million shares for $325 million. Now let's turn the call over to Gil for his comments.