Oct. 28 (Bloomberg) -- Symantec Corp., the biggest maker of security software, topped analysts’ profit estimates after winning back customers from competitors and adding new business users. The shares rose 5.9 percent in late trading.

Second-quarter net income rose 19 percent to $150 million, or 18 cents a share, from $126 million, or 15 cents, a year earlier, the Cupertino, California-based company said today in a statement. Excluding some costs, profit was 36 cents a share in the period, which ended Oct. 2. Analysts had predicted 33 cents on average, according to a Bloomberg survey.

Chief Executive Officer Enrique Salem, who took the reins six months ago, has sought to spur orders by imposing sales quotas on more of Symantec’s employees. The company also is benefiting from increased spending by the federal government on security. Symantec’s programs store data, encrypt files and inoculate computers against malicious code.

“This ship is starting to turn around,” said Daniel Ives, an analyst with Friedman Billings Ramsey & Co. in New York. He rates the shares “outperform” and doesn’t own them. “Enrique has done a good job fixing things that were broken in the sales organization.”

Shares Climb

Symantec rose 92 cents to $16.65 in extended trading after releasing the results. The shares, up 16 percent this year, closed at $15.73 on the Nasdaq Stock Market.

Symantec also announced a $1 billion share repurchase program today.

“It illustrates the confidence we have in our cash-flow generation,” Chief Financial Officer James Beer said in an interview. “Our products and services continue to be valued, so customers renew even in times when it’s harder for businesses and consumers to commit to new services.”

Sales still fell last quarter, with buyers keeping a lid on spending in the recession’s aftermath. Including revenue from acquired companies, sales declined 2.9 percent to $1.48 billion. Analysts had estimated $1.43 billion.

Excluding some costs, profit will be 36 cents to 37 cents a share in the third quarter, the company said. Sales will be $1.49 billion to $1.52 billion. Analysts had estimated profit of 37 cents and sales of $1.49 billion.

“This is the first time in the past three quarters where we get both a revenue and earnings beat and guidance that’s at least in line with Street expectations,” said Rob Owens, an analyst with Portland, Oregon-based Pacific Crest Securities. He has an “outperform” rating on the shares, which he doesn’t own himself.

Goldman Sachs Group Inc. estimates that global spending on security software will be little changed this year, rebounding to 5 percent growth in 2010.

Symantec’s new share repurchase program is effective immediately. The company had about $57 million left under the current program. Since June 2007, when the last buyback plan was approved, the company has repurchased more than $1.9 billion in stock.

To contact the reporter on this story: Rochelle Garner in San Francisco at rgarner4@bloomberg.net

Last Updated: October 28, 2009 16:39 EDT