This excerpt taken from the VRSN 8-K filed Nov 1, 2007.
Non-GAAP Operating Margin for Continuing Operations Increases Over 190 Basis Points to 23.4%
MOUNTAIN VIEW, CA November 1, 2007 VeriSign, Inc. (Nasdaq: VRSN), the leading provider of digital infrastructure for the networked world, today reported financial results for the third quarter ended September 30, 2007.
VeriSign reported total revenue of $377 million for the third quarter of 2007 with revenue from continuing operations of $374 million.
On a GAAP basis, VeriSign reported net income of $19 million for the third quarter of 2007 and earnings per share of $0.08 per fully-diluted share. Net income from continuing operations was $16 million with earnings per share of $0.07 per fully-diluted share.
On a non-GAAP basis, VeriSign reported net income of $66 million for the third quarter of 2007 and earnings per share of $0.27 per fully-diluted share. Net income from continuing operations was $65 million with earnings per share of $0.26 per fully-diluted share.
A table reconciling the GAAP to non-GAAP results reported above is appended to this release.
Our results this quarter highlight the continued strength of our Registry and SSL businesses, said Bill Roper, president and chief executive officer of VeriSign. The consistent growth in these markets, combined with the stability of our business model, drive solid financial results which in turn allow us to invest in our business and improve the efficiency of our capital structure. We will continue to take steps to focus our efforts on growing our core businesses, and to seek ways of creating additional shareholder value.
We are pleased with our third quarter results, particularly with regard to our ability to deliver margin expansion, said Bert Clement, chief financial officer of VeriSign. Solid revenue growth, coupled with disciplined expense management, generated cash flow from operations of $109 million.