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To: 2MAR$ who wrote (92)	10/29/2001 5:28:56 AM
From: 2MAR$	Respond to of 238

VRSN ( $53--$43) EPS -$23 Cap=$8Bil shares tumble 20 percent, files for $750mil shelf offering By Matt Andrejczak, CBS.MarketWatch.com Last Update: 6:02 PM ET Oct. 26, 2001 MOUNTAIN VIEW, Calif. (CBS.MW) -- Security software firm VeriSign's shares tumbled nearly 20 percent Friday on news it may sell up to $750 million in stock, diluting the value of its outstanding shares. FRONT PAGE NEWS EchoStar to buy GM's Hughes arm, DirecTV for $26 bln UAL chief Goodwin is ousted; board member replaces him Nikkei drops 1.7%; Hong Kong shares tumble UAL, Lockheed, Boeing, EchoStar and more Market news and more! Sign up to receive FREE email newsletters Get the latest news 24 hours a day from our 100-person news team. The stock also fell on news that VeriSign's third-quarter results indicated some weakness in its domain-name business that could affect near-term earnings. Shares of VeriSign (VRSN: news, chart, profile) plummeted $10.52 to $42.82 on hefty volume of 48 million shares - more than five times its usual daily trading activity. The news triggered a downgrade from Bear Stearns, which trimmed its rating on the stock to "neutral" from "attractive," and said "with the deterioration in the company's domain name business, we believe management's revenue and EPS (earnings per share) guidance for 2002 are at serious risk." UBS Warburg's Jordan Klein also said several key metrics (many domain name-related) were weaker than his expectations, driven in part by delays in the launch of new top-level domains and the WTC tragedy. FAC/Equities' Matt Barzowskas said, "With the company coming at the low end of a number of metrics, we see the stock being under pressure in the near term." He maintained a "buy" on the stock. Mountain View, Calif.-based VeriSign reported a pro-forma third-quarter profit of $59.7 million, or 28 cents per share, vs. a pro-forma profit of $36 million, or 17 cents a share, in the same period a year ago. The results beat Wall Street's consensus estimate of 16 cents per share, according to analysts polled by Thomson Financial/First Call. VeriSign posted revenue of $255.7 million, compared to $173.1 million in the same period last year. Including special charges related to acquisitions, goodwill, and intangible assets, VeriSign reported a loss of $386.7 million, or $1.91 a share, versus a loss of $1.3 billion, or $6.78 a share, in the year-ago period. VeriSign said Sept. 24 it would acquire Illuminet Holdings, a provider of network connectivity and services to telecom carriers, for $1.2 billion in stock. On Thursday, Salomon Smith Barney initiated a "neutral" rating on VeriSign. Matt Andrejczak is a reporter for CBS.MarketWatch.com in Washington. Latest Industry News