VRSN ( jump $46 up $54-$50) Tops Expectations Amid Big Jump in Revenue
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MOUNTAIN VIEW, Calif. -- VeriSign Inc. reported better-than-expected operating earnings for its first quarter on solid demand for its Internet authentication and domain-name registration services.
The provider of Internet authentication and payment security services late Thursday said its net loss came to $1.38 billion, or $6.90 a diluted share, compared with a year-earlier net loss of $26.2 million, or 24 cents a share.
Excluding the amortization of goodwill and intangible assets related to acquisitions, stock-based compensation charges related to acquisitions, gains and losses on equity investments and benefit for income taxes, VeriSign said its profit was $48.6 million, or 23 cents a share. Analysts surveyed by Thomson Financial/First Call were looking for VeriSign to earn 13 cents a share.
Revenue increased more than sixfold to $213.4 million from $34.1 million a year earlier.
VeriSign President and Chief Executive Officer Stratton Sclavos said the company was able to expand revenue and operating margins and generate healthy cash flow during the quarter despite the sluggish U.S. economy.
VeriSign distributes digital certificates, the equivalent of computerized identity cards to help people and companies prove they are who they say. The certificates work with security features in Web-browser programs to authenticate merchants and customers. Last June, the company bought Network Solutions, the primary registrar of Internet domain names.
The company on Thursday said it continues to see strong demand for its domain-name registration services. The Network Solutions unit added 3.1 million new names in the first quarter, ending the period with 30.6 million active domain names in its database of Internet addresses ending in ".com," ".net" and ".org."
VeriSign's Web-site certificate business ended the quarter with 90,000 new and renewed certificates, bringing the total installed base to more than 305,000 certificates and representing 11% growth over the fourth quarter.
The company's payment services business had more than 19,900 online merchants using its service by quarter's end, up 32% from the fourth quarter, VeriSign noted.
Separately, VeriSign said its board authorized the company to buy back up to $350 million dollars of its common stock. VeriSign said it has roughly 210 million shares outstanding.
The company reported results after the market close. At 4 p.m. on the Nasdaq Stock Market, VeriSign shares were off 38 cents at $46.22. |
