(UPDATE) Internet-Commerce Software Maker VeriSign Says Losses Are Shrinking
Dow Jones Online News, Thursday, December 24, 1998 at 12:28
NEW YORK -(Dow Jones)- VeriSign Inc., a provider of so-called digital
certificates, Thursday said its losses are shrinking.
The Mountain View, Calif.-based company reported a third-quarter
operating loss of 18 cents a share on revenue of $10.5 million. But
Chief Executive Stratton Sclavos Thursday said the company's financial
situation is improving. He declined to provide details about when
VeriSign (VRSN) will turn profitable.
VeriSign sells public key infrastructure and digital-certificate
technology used to conduct secure transactions and communications over
the Internet. In recent months, a big part of the company's growth has
come from selling those services to big customers such as
Hewlett-Packard Co. (HWP) and Texas Instruments Inc. (TXN) for use in
their internal employee networks.
With digital certificates, people can sign their names
electronically, much like drivers' licenses are used for identification.
The certificates also eliminate the need for shoppers to send
credit-card information over the Internet each time they place an order.
Proponents of electronic commerce have maintained that such certificates
will ease security and privacy concerns about doing business on the Web.
Verisign's certificate system is meant to emphasize proof of
identity. Users obtain digital identification cards with varying levels
of assurance of the person's true identity. VeriSign charges differing
rates depending on the detail of the background check. The company has
strategic relationships with Microsoft Corp., Intel Corp. and Visa
International.
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