Check Point Software Technologies (Nasdaq:CHKP) will today present earnings per share of 25 cents on sales of $108 million, in line with consensus forecasts, predicts analyst Dan Harverd of HSBC.

Harverd reiterated a Buy rating foreign or the Israeli data security systems maker and set a price target of $20, about 40% above its current price.

Investors will be looking at Check Point's guidance for the third quarter, he said.

HSBC expects Check Point to report 4% revenue growth in the third quarter, to $112 million.

The investment bank also expects Check Point to continue reporting tough market conditions, and low visibility for the quarters to come.

Harverd sees significance in Check Point's revenue breakdown the proportions of product sales to licensing and services revenues.

In the first quarter of 2002, the proportion of sales shrank to 63% of total revenue, from 75% in the parallel quarter of 2001. HSBC expects Check Point to remain stable at about that level, or to improve.

The software industry has been giving mixed signals: In June, earnings growth forecasts for the year suddenly dived, from about 9% to 1%, as hopes of a second-half recovery fade. But there are signs of stability, including by Israel's Mercury Interactive (Nasdaq:MERQ), Harverd writes.