“Non-GAAP EPS of $7.70 to $8.30, and GAAP EPS is expected to be approximately $1.22.”

In context

“Gil Shwed (CEO): Thank you very much, Roei, and great to have all of you here with us, especially now as we celebrate 30 years for Check Point. I think we've achieved a lot, but this is just the beginning and there's plenty more we need to accomplish in the coming 30 years. Let me jump right in and give some of my insights. I think we've all seen some of the things Roei mentioned in his summary for the quarter; very healthy quarter with 22% EPS growth, revenues above our mid-point projection, so I am pleased with that. Positive trends in the Americas are very important; that sets the tone for the rest of the world. I hope this may be setting the stage for what we should expect in the next six months around the world; strong operating margin. I think we're seeing that our customers are actually very happy with our products and technologies, to the extent that they are deferring some of the renewal and refresh projects. But the renewal business is very strong and customers are satisfied with the products. I think in the future, we want to translate that into additional growth. What we are seeing is something very important from Infinity; and I will speak about that, which is the pinnacle of our strategy, exceeding 10% of our total revenues for the first time. Harmony E-mail is also continuing its very high growth rates, capturing another segment of this busy cybersecurity market. Let me start by discussing some of the wins we have with Infinity. I believe our commitment and vision is to provide the best security. Infinity, I think, expresses our vision in the best possible way when we offer customers a comprehensive platform where everything works together to deliver the best security. Here are a few examples of recent wins in the Infinity landscape: first, an important bank expanded their network security, where Maestro super high speed, and also added to that Infinity architecture, including Harmony E-mail because of its highest catch rate, and combines that with our new Horizon family that correlates all events for a more collaborative security across systems. Second, we secured a significant network of educational facilities, where we replaced a competitive vendor product and chose our entire platform—network, email, and endpoint security. Finally, an existing large customer who was satisfied with our Quantum solution translated that into a bigger win with a full Infinity implementation consolidated across the network, the cloud, and the endpoint—quite a substantial deal. What we're seeing here is how Infinity can serve customers in all sectors and deliver on that vision of the best security for everyone. Adding to this is the success we've achieved in the E-mail security market. You can see some examples of customer wins, including a large bank that was unhappy because their existing E-mail security missed suspicious emails. After testing our Harmony E-mail solution, which typically took them weeks and months to optimize before, they achieved much better security results in less than five minutes for a large organization. Similarly, a large pharmaceutical company adopted Harmony E-mail largely due to its higher catch rate compared to the competition. We also see these trends reflected in Analyst Reports. The notable GigaOm report, where we’ve quickly moved to leadership positions in these charts, is a significant breakthrough in our industry. Specifically, our solution offers unparalleled security and the highest catch rate in cloud-based E-mail solutions. I must emphasize that our vision this year continues to revolve around the three Cs: create comprehensive, consolidated, and collaborative security. I’m placing a huge focus on the collaborative aspect, which truly sets Check Point apart in the industry. This means we can identify threats in one location in the network and transition that to full prevention throughout the entire network. This is unique in our industry, considering the scope and the ability to connect many technologies, not only from Check Point, but also increasingly from third-party technologies. An example of how this works is as follows: a single endpoint on the network detects that the user received an email with an infected attachment. This is a zero-day threat, which means most technologies do not identify it immediately. Some might detect it hours after the infection, but Check Point is the only vendor that detects it in real-time before the malicious file has the chance to infect the user’s computer. Once this threat is analyzed by our ThreatCloud AI, we're able to isolate that endpoint, quarantine it, and ensure the network is protected against the file, irrespective of the security state of other computers involved. This happens immediately and automatically, which we’ve seen happen frequently. I believe our strategy, technology, and the collaborative security we provide are driving our growth. Harmony E-mail, Infinity, and our advanced technologies are behind the strong security subscription growth. We expect to see more of this in the second half of the year as we launch more products and technologies with greater innovative collaboration in security. Before I open it to your questions, I want to touch on our projections for the remainder of the year and the third quarter. For the entire year, we are maintaining our previously released guidance; revenues in the range of $2.34 billion to $2.51 billion. Non-GAAP EPS of $7.70 to $8.30, and GAAP EPS is expected to be approximately $1.22. I understand projecting the future is always challenging, and we see the world changing around us constantly. I am optimistic about the second half of the year, but we can never be certain. Now, regarding the third quarter, I'll share our projections, which are based on all the analyses we have done so far. Revenues are expected to be in the range of $570 million to $605 million. Non-GAAP EPS is expected to be between $1.97 to $2.07. GAAP EPS is projected to be approximately $0.35 less than that. With that, I want to thank you for joining us today and I'll be very happy to open the call for your questions.”