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VeriSign Reports 3Q Financial Results of 2008
(Wireless News Via Acquire Media NewsEdge)
VeriSign, a provider of Internet infrastructure services, has reported
financial results for the third quarter ended September 30.
VeriSign noted in its report that revenue of $246 million from
continuing operations for the third quarter of 2008. On a GAAP basis,
VeriSign reported a consolidated net loss of $200 million and a net
loss per share of $1.02 on a fully-diluted basis. These GAAP results
reflect a $237 million non-cash impairment charge for estimated losses
on certain assets held for sale, all of which is recorded in
discontinued operations. Also recorded were restructuring charges of
$13 million, $7 million of which is recorded in discontinued operations
related to assets held for sale.
VeriSign reported segment revenue for Internet Infrastructure and
Identity Services (3IS), or the "core businesses" of Naming, SSL and
IAS, of $240 million, up 3 percent from Q2 2008 and up 18 percent year
over year.
On a non-GAAP basis (which excludes items described below) for our core
businesses, VeriSign reported net income of $48 million for the third
quarter of 2008 and fully-diluted earnings per share of $0.25,
including a $0.03 write-down related to investments affected by the
Lehman Brothers bankruptcy. A table reconciling the GAAP to the
non-GAAP results reported above is appended to this release.
"We're very pleased with our operating results this quarter, especially
in light of the current market conditions," said Jim Bidzos, executive
chairman of the board of directors, president and CEO on an interim
basis of VeriSign. "While it's difficult to predict what will happen
with the broader economy, we feel very good about the strength and
stability of our core businesses. We are fortunate to be in a market
leadership position with good revenue growth, expanding operating
margins and backed by the strength of the VeriSign brand. As we move
forward in these uncertain times, we remain focused on protecting and
growing our core services for the long term."
"Third quarter was another solid quarter for VeriSign with 18 percent
year over year revenue growth and non-GAAP operating margin of 35.5
percent," said Brian Robins, acting CFO of VeriSign. "Our non-GAAP
earnings per share was strong as well after considering an
unanticipated $0.03 charge related to investment losses, and we exited
the quarter with a strong balance sheet and healthy cash flow of $115
million for the third quarter. As we contemplate our 2009 plan, we are
realistic about the current economic environment and remain fully
committed to our strategy to focus the business on our core Internet
infrastructure services."
Non-GAAP results exclude the following items which are included under
GAAP: discontinued operations, non-core businesses in continuing
operations, stock-based compensation, amortization of other intangible
assets, restructuring costs, non-recurring costs, and gains and losses
on derivatives and equity investments. Non-GAAP financial information
is also adjusted for a 30 percent tax rate which differs from the GAAP
tax rate. A table reconciling the GAAP to non-GAAP net income is
appended to this release.
((Comments on this story may be sent to newsdesk@closeupmedia.com))
((Distributed on behalf of 10Meters via M2 Communications Ltd -
http://www.m2.com))
((10Meters - http://www.10meters.com))
Copyright ? 2008 Wireless News
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