Above expectations. See release:
Thursday April 22, 7:36 am Eastern Time
Company Press Release
Network Solutions Announces Record 1999 First Quarter Revenue and Earnings First Quarter 1999 Highlights Year Over Year
Net new registrations 922,000 - up 171 percent International net new registrations 230,000 - up 135 percent
HERNDON, Va.--(BUSINESS WIRE)--April 22, 1999-- Revenue $38.1 million - up 131 percent
Net income $4.8 million - up 134 percent
Earnings per share of $.14 versus $.06 - up 133 percent
Network Solutions, Inc. (NASDAQ: NSOL - news) today reported record net revenues for the first quarter ended March 31, 1999 of $38.1 million, an increase of 131 percent over net revenues of $16.5 million for the first quarter of 1998. Net income increased 134 percent to $4.8 million or $0.14 per share on a diluted basis, compared to $2.0 million or $0.06 per share for the first quarter of 1998.
Network Solutions registered a record 922,000 net new Internet domain names in the first quarter of 1999, up 171 percent from the first quarter 1998 total of 340,000 names and up 49 percent from the fourth quarter 1998 total of 621,000. The cumulative total of net registrations grew 127 percent from nearly 1.9 million at March 31, 1998, to 4.2 million at March 31, 1999. In the first quarter of 1999, the number of net new international registrations in .com, .net and .org totaled 230,000, up 135 percent from the first quarter 1998 total of 98,000.
Network Solutions' Internet Technology Services reported revenues of $3.3 million in the first quarter, unchanged from fourth quarter 1998 revenues of $3.3 million and up 234 percent compared to first quarter 1998 revenues of $992,000.
''Network Solutions' revenues were up dramatically with registrations of nearly one million domain names in the first quarter alone,'' said Michael A. Daniels, chairman and acting chief executive officer, Network Solutions. ''By comparison, we registered more than 1.9 million domain names in all of 1998 and 960,000 domain names in all of 1997. Network Solutions' business continues to be a barometer of Internet usage.''
''In the first quarter, we saw continued growth in dot com Web addresses in the U.S. and internationally, growing our entire registration base 26 percent in the past quarter alone. This growth contributed to our tenth consecutive quarter of increasing profitability,'' said Robert Korzeniewski, chief financial officer and acting chief operating officer, Network Solutions. ''Our business model generated over $30 million in operating cash flow during the quarter, more than six times our reported net income of $4.8 million on $38.1 million in revenue. These results highlight the strength of our capital structure with $202 million in cash and investments with virtually no debt.''
Recent highlights include:
-- 4 millionth Web address registration - Network Solutions registered its 4 millionth Web address on March 9, with the registration of riedelglass.com by Riedel Glas, a 243-year-old company that produces Austrian glass. The elapsed time to add the 1 million domain names leading up to the 4 millionth name was four months. It took Network Solutions 4 years to register its first 1 million domain names.
-- Premier and Affliliate Partner Programs and Strategic Marketing Agreements - Network Solutions expanded its worldwide distribution channel programs with Internet Service Providers, Web hosting and small business companies during the quarter adding 18 U.S. companies to its national Premier Program for a total of 75 participating companies; entering into agreements with almost 100 International Premier Program members since launching the program in July 1998; signing more than 4,000 Affiliate members during the quarter for a current total of nearly 8,000 Affiliates; and signing key marketing agreements with American Express and Looksmart.sm
-- Expanding the dot com services - To add value to its growing customer base, Network Solutions significantly expanded its dot com products for small business. In the first quarter, the Company announced the industry leaders helping to build the company's dot com directory,(TM) an Internet ''find engine'' for businesses. These leaders include GTE Directories Corp., infoUSA.com (NASDAQ: IUSAA/IUSAB), Looksmart,(SM) VeriSign (NASDAQ:VRSN - news) and Vicinity Corporation. The company also introduced the dot com biz card, TM a virtual business card for Network Solutions' customers, and dot com forwarding,(TM) to help businesses manage their multiple Web addresses to target various customers.
About Network Solutions
Founded in 1979, Network Solutions, Inc. (NASDAQ: NSOL - news) pioneered the development of registering Web addresses ending in .com, .net, .org and .edu. Network Solutions also provides Internet Technology Services that assist large commercial organizations in the evolution and management of their Internet technologies. For more information, see the www.networksolutions.com Web site.
Network Solutions registers the majority of Web addresses through agreements with Internet companies around the globe, including 75 domestic and almost 100 international companies in its Premier program. Network Solutions has created value-added small business solutions through agreements with leading companies such as American Express (NYSE: AXP - news). Through its Alliance Program, Network Solutions works closely with EarthLink (NASDAQ: ELNK - news), MindSpring Enterprises, Inc. (NASDAQ: MSPG - news), Interliant, Inc. (formerly Sage Networks, Inc.) and ValueWeb (NASDAQ: ESPI - news). Network Solutions has also entered into marketing agreements with companies including Yahoo! Inc. (NASDAQ: YHOO - news) and Netscape Communications Corporation.
For Network Solutions, Media: Cheryl Regan, cregan@netsol.com, (703) 742-4847, Investor Relations: Sean McClorey, smcclorey@netsol.com, (703) 326-6090.
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