This excerpt taken from the VRSN 8-K filed May 8, 2008.
Exceeds Guidance Driven By Growth in Core Businesses and Disciplined Expense Management
MOUNTAIN VIEW, CA May 8, 2008 VeriSign, Inc. (Nasdaq: VRSN), the leading provider of Internet infrastructure for the networked world, today reported financial results for the first quarter ended March 31, 2008.
VeriSign reported revenue of $354 million for the first quarter of 2008. On a GAAP basis, VeriSign reported a net loss of $19 million and a net loss per share of $0.09. These GAAP results reflect a $25.5 million impairment on certain assets held for sale as well as a restructuring charge of $26.5 million for both continuing and discontinued operations.
VeriSign also reported segment revenue for Internet Infrastructure and Identity Services (3IS), or the core businesses: Naming, SSL, and IAS. The company reported revenue for the core businesses of $223 million, up 5% from Q4 and up 23% year over year.
On a non-GAAP basis (which excludes the items described below) for our core businesses, VeriSign reported net income of $44 million for the first quarter of 2008 and earnings per share of $0.21 per fully-diluted share. A table reconciling the GAAP to non-GAAP results reported above is appended to this release.
Our first quarter non-GAAP results represent strong growth in our core businesses as well as better than expected performance from the businesses to be divested, said Bill Roper, president and chief executive officer of VeriSign. We are pleased that our strategy is beginning to show momentum and we will continue to invest in our core businesses.
This is a strong start to our fiscal year as we continue to focus on key operational priorities, said Brian Robins, acting chief financial officer of VeriSign. In addition to strong revenue growth this quarter in our core businesses, non-GAAP operating margin for core services was 30.3% and we repurchased approximately 14% of shares outstanding as of December 31, 2007 while maintaining a healthy balance sheet.