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Check Point Software

(CHKP) - Get Free Report

shares soared after the company announced its second-quarter earnings and expanded share repurchase program.

The Internet security company reported earnings of 77 cents a share on revenue of $328.6 million, representing a 9% increase in revenue year-over-year. Analysts surveyed by

Thomson Reuters

expected earnings of 76 cents a share on $331 million in revenue for the second-quarter of 2012.

"I'm pleased with the continued growth of our revenues and earnings in the second quarter. We've seen great acceptance of our new security appliances as a platform of choice for security consolidation,"said CEO Gil Shwed. "During the quarter, enterprise appliance units grew by over 20% and continued to drive market share gains."

The Israeli-based company also announced the expansion of an ongoing share repurchase program. Under the revised plan, Check Point is authorized to repurchase up to $1 billion worth of outstanding shares during the next two years.

Check Point had approximately 204.8 million shares of common stock outstanding, as of June 30, 2012. Since launching the program in 2003, Check Point has purchased approximately 87.5 million shares for a total of approximately $2.2 billion.

"We believe that our market leadership and long term growth prospects make this an effective time to further utilize our cash to increase shareholder value," said CFO Tal Payne.

Shares immediately rose at opening bell, and were trading up 8.26% at $49.39 by mid-day.

--Written by Nathalie Pierrepont in New York.

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