"I would recommend to Israeli technology companies considering an offering to go to the US and not to Israel, because that's where the competitors and investors relevant to their market are found," said Check Point Software Technologies Ltd. (Nasdaq: CHKP) chairman and CEO Gil Shwed at the press conference, following the publication of the company's financial report for the second quarter of 2013.
Shwed added, "We're a small country with a tiny capital market. What percentage can be invested here in technology companies? That does not mean that the Israeli market is bad or that there are no smart and talented people here. The problem is global, and regrettably, the Israeli market is not attractive for technology companies."
Shwed remarks about the Israeli capital market come against the backdrop of the decision by Mellanox Technologies Ltd. (Nasdaq:MLNX; TASE:MLNX) to delist from the TASE, which will come into effect at the end of August.
In defending Check Point's NIS 1.65 million in tax breaks in 2006-11, Shwed said, "Israel had a policy of encouraging companies to move their business here. The fact that we choose to base our center of operations here should not be taken for granted. We struggled to bring employees from outside Israel and concentrate the activity here. Thanks to the activity of Check Point and companies like us, we've brought to Israel more business and income. I can tell you that, from a historical perspective, 20 years ago, when we deliberated where to build the business and register, Israel's policy was an important consideration in the decision to stay here.
"The amount of the tax break is below the amounts that Check Point has brought to Israel. In the past two years, we've paid double the amount under the old policy, so all the media headlines refer to a situation that ended for us two years ago."
Published by Globes [online], Israel business news - www.globes-online.com - on July 18, 2013
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