This excerpt taken from the VRSN 8-K filed May 7, 2009.
Company Exceeds Expectations with Non-GAAP Core Earnings Per Share of $0.32
MOUNTAIN VIEW, CA May 7, 2009 VeriSign, Inc. (NASDAQ: VRSN), the trusted provider of Internet infrastructure services, today reported financial results for the first quarter ended March 31, 2009.
On a GAAP basis, VeriSign reported revenue of $255 million from continuing operations for the first quarter of 2009. On a GAAP basis, VeriSign reported net income attributable to VeriSign, Inc. and subsidiaries of $65 million and earnings per share attributable to VeriSign, Inc. and subsidiaries of $0.34 on a fully-diluted basis.
On a GAAP basis, VeriSign reported segment revenue for Internet Infrastructure and Identity Services (3IS), or the core businesses of Naming Services and Authentication Services, of $252 million, up 2% from Q4 2008 and up 13% year-over-year. This includes $3 million from iDefense that was previously classified as a discontinued operation. GAAP operating margin for the first quarter was 29.3%.
On a non-GAAP basis (which excludes items described below) for its core businesses, VeriSign reported net income attributable to VeriSign, Inc. and subsidiaries of $61 million for the first quarter of 2009 and fully-diluted earnings per share of $0.32. Non-GAAP operating margins for the first quarter were 36.9%. A table reconciling the GAAP to the non-GAAP results reported above is appended to this release.
In the face of a tough economy, solid execution has delivered solid results, said Jim Bidzos, VeriSigns executive chairman and chief executive officer on an interim basis. Our core businesses did well, and our divestiture efforts have shown great progress.
During the past several quarters when the global economy has contracted, worldwide Internet usage has continued to rise, said Mark McLaughlin, president and chief operating officer of VeriSign. VeriSigns services are important to the Internet economy. We remain confident in our ability to make continued progress in the business in the short term and grow in a disciplined manner over the long term.
We are very pleased with the progress that we made in Q1, having delivered top and bottom line results that were in-line with or exceeded expectations while continuing to execute on our strategy to divest of non-core businesses, said Brian Robins, acting chief financial officer of VeriSign. Furthermore, our balance sheet remains strong with nearly $950 million in cash and cash equivalents, and our deferred revenue for continuing operations grew 3% quarter-over quarter.