Earnings and total revenue slipped in Check Point Software's ( CHKP) second quarter, as the company struggled with what it called a "challenging" market environment. Revenue was $138.9 million, a decrease of 4% compared with the same quarter last year, Check Point announced after Tuesday's closing bell. Net income, weighed down by the expense of stock options, dropped 16% to $65.7 million, or 27 cents a share, from $78 million, or 31 cents a share, last year. Excluding options-related charges (which did not appear on the income statement a year ago) and acquisition-related expenses, the company earned a profit of $76 million, or 32 cents a share. Both earnings and sales were in line with the company's guidance, but Wall Street was looking for a bit more on the top line. Analysts polled by Thomson First Call had projected an EPS of 32 cents a share on revenue of $140.2 million. Total product and license revenue was also down, dropping 6% to $122 million, but deferred revenue increased by 14% year over year to $176.5 million. In after-hours trading on Instinet, shares were up 2 cents to $17.32; volume was light.