While Symantec (NASDAQ: SYMC) is the biggest player in security software, it has been lagging over the past few years. But, the company has been taking action, especially in revamping its sales organization.
And, it seems to be working. Today, Symantec reported its Q2 results, which showed a 19% increase in net income to $150 million or $0.18 per share. Yet, sales were still soft, declining 2.9% to $1.48 billion (but it was still better than the $1.43 billion consensus forecast).
A key growth driver was the consumer business unit, which saw sales up 6% to $465 million. Symantec is getting lots of uptake from its Norton Internet Security and Norton AntiVirus 2010 offerings. The company has also been aggressive in bolstering its channel strength, such as with its Google (NASDAQ: GOOG) deal.
However, Symantec still has challenges. For example, storage and server product sales plunged 9% in the quarter. Essentially, companies are still holding back because of the continued economic uncertainty.
But, Symantec still cranks out lots of cash flows, which will likely continue. As a result, the company announced a $1 billion share repurchase agreement.
In Thursday morning trading, the shares of Symantec were up 8% to $17.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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