VRSN » Topics » (In thousands, except per share data)

This excerpt taken from the VRSN 8-K filed May 8, 2008.

(In thousands, except per share data)

 

     Three Months Ended
March 31, 2008
 
     Operating
Income
    Net
Income
 

GAAP as reported

   $ 30,562     $ (18,587 )

Discontinued operations and non-core businesses (1)

     (833 )     32,104  

Adjustments to core businesses: (1)

    

Stock based compensation

     13,533       13,533  

Amortization of intangibles

     2,491       2,491  

Restructuring costs

     14,124       14,124  

Non recurring and other costs (2)

     7,793       7,793  

Gains or losses on investments and derivatives

       (1,997 )

Tax adjustment (3)

       (5,768 )
                

Non-GAAP as adjusted

   $ 67,670     $ 43,693  
                

Dilutive shares

     210,471       210,471  
                

Per diluted share

   $ 0.32     $ 0.21  
                

 

(1) As of March 31, 2008, the Company’s business consists of the following reportable segments: Internet Infrastructure and Identity Services (“3IS”) and Other Services which represents continuing operations of non-core businesses and legacy products and services. The 3IS segment is also referred to as “core businesses” which are Naming, SSL, and Authentication.

 

(2) Non recurring and other costs primarily consists of $8.1 million in penalties related to late payment of payroll taxes on employee stock based awards during fiscal 2004 through the first quarter of fiscal 2008.

 

(3) Non-GAAP tax is calculated as 30% of income from continuing operations, excluding minority interest, which is presented net of tax on the Statement of Operations.

VeriSign provides quarterly and annual financial statements that are prepared in accordance with generally accepted accounting principles (GAAP). Along with this information, we typically disclose and discuss certain non-GAAP financial information in our quarterly earnings release, on investor conference calls and during investor conferences and related events. This non-GAAP financial information does not include the following types of financial measures that are included in GAAP: loss from discontinued operations, loss from non-core businesses, stock-based compensation, amortization of intangible assets, restructuring costs, non-recurring costs, and gains and losses on investments and derivatives. Non-GAAP financial information is also adjusted for a 30% tax rate which differs from the GAAP tax rate.

Management believes that this non-GAAP financial data supplements our GAAP financial data by providing investors with additional information that allows them to have a clearer picture of the company’s core operations. The presentation of this additional information is not meant to be considered in isolation or as a substitute for results prepared in accordance with GAAP. We believe that the non-GAAP information enhances the investors’ overall understanding of our financial performance and the comparability of the company’s operating results from period to period. Above, we have provided a reconciliation of the non-GAAP financial information that we provide each quarter with the comparable financial information reported in accordance with GAAP for the given period.

"(In thousands, except per share data)" elsewhere:

Ariba (ARBA)
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