VRSN ( $44-$51) reports operating loss, yet beats analysts' estimates on a pro forma basis
By Jenny Spitz, CBS.MarketWatch.com
Last Update: 6:49 PM ET July 26, 2001
MOUNTAIN VIEW, Calif. (CBS.MW) -- Internet security infrastructure provider VeriSign Inc. posted a net loss for its second-quarter Thursday, but outpaced the consensus estimate by 11 cents a share on a pro forma basis.
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After the market close, the Mountain View, Calif., firm reported second-quarter operating loss of $11.2 billion, which included a one-time, non-cash charge of $9.9 billion related to a portion of goodwill for acquisitions made with stock over the last two years.
Excluding the charge, VeriSign (VRSN: news, chart, profile) had earnings of $52.6 million, or 25 cents, compared with $10.3 million, or 7 cents a share in the same period a year ago.
Analysts polled by First Call/Thomson Financial were looking for the company to report earnings of 14 cents a share, on average.
Quarterly revenue came in at $231 million, up 229 percent compared with the $70.3 million recorded by the company in the year-ago quarter.
In regard to the $9.9 billion charge, VeriSign's Chief Financial Officer Dana Evan said that while the sour economy led to a reduction in market value for the company's acquisitions, they still have performed "at or above expectations." On an operating basis, the company continues to show increased operating income, positive cash flow and a debt-free balance sheet with $1.3 billion in cash and investments, Evan added.
Ahead of the earnings report, VeriSign shares closed down 7 cents at $47.17.
Jenny Spitz is headline editor for CBS.MarketWatch.com in San Francisco.
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