Symantec Strikes a Secure Pose

Data security and backup management software might not be as sexy as computer games or video editing. But some of the best investments lurk in unloved markets, and Symantec (Nasdaq: SYMC) might deserve a little love right now.

The company just reported a very good quarter: 15% sales growth over last year and 25% higher earnings per share. After 15 straight quarters with non-GAAP EPS bouncing between $0.22 and $0.29 per share, Symantec finally broke through with a $0.33 per-share result.

Management credits a slate of fresh releases into the enterprise data management space for the improvement, and says that the backup-software market share that was lost to McAfee (NYSE: MFE) last year is starting to trickle back again.

There's also "broad international exposure" to insulate Symantec from any domestic downturns, and the company feels good about its position in exciting segments such as virtualization support and software aimed at small businesses. This is one of VMware's (NYSE: VMW) preferred partners, for example.

A recent spate of security breaches has reemphasized the importance of protecting your data, and even Microsoft (Nasdaq: MSFT) is highlighting the security improvements in Windows Vista over all the other new, cool stuff. Symantec looks poised to benefit from that trend.

So the next time you're thinking about an investment in Electronic Arts (Nasdaq: ERTS) or Adobe Systems (Nasdaq: ADBE), forget about the sex appeal and take a look at security software, too. There's lots to love about a profit breakthrough.

Further Foolishness:

• Foolish Forecast: Symantec Serving up Cash
• Software's $31 Billion Megatrend
• Stay Safe While Shopping Online