VRSN » Topics » Real-Time Publisher Services

These excerpts taken from the VRSN 10-Q filed May 8, 2009.

Real-Time Publisher Services

The Company’s RTP Services allow organizations to obtain access to and organize large amounts of constantly updated content, and distribute it, in real time, to enterprises, Web-portal developers, application developers and consumers. RTP Services also make it easier for publishers of all sizes to distribute and track their content feeds, which may improve the reliability and quality of their real-time content. On May 5, 2009, the Company sold its RTP Services business.

The current and historical operations, gains and losses upon disposition, including estimated losses upon disposition, of these disposal groups are presented as discontinued operations for all periods presented in the Company’s Condensed Consolidated Statements of Operations. The amounts presented represent direct operating costs of the disposal groups. The Company has determined direct costs consistent with the manner in which the disposal groups were structured and managed during the respective periods. Allocations of indirect costs such as corporate overhead and goodwill impairments that are not directly attributable to a disposal group have not been made.

For a period of time, the Company will continue to generate cash flows and will report income statement activity in continuing operations that are associated with these disposal groups and certain of the completed divestitures. The activities that will give rise to these impacts are transitional in nature and generally result from agreements that ensure and facilitate the orderly transfer of business operations. The nature, magnitude and duration of the agreements will vary depending on the specific circumstances of the service, location and/or business need. The agreements can include the following: logistics, customer service, support of financial processes, procurement, human resources, facilities management, data collection and information services. Existing agreements generally extend for periods less than 12 months.

During the three months ended March 31, 2009, the Company recorded gains on disposals including net reversals of estimated losses on disposal, of $4.0 million which is included in discontinued operations. During the three months ended March 31, 2008, the Company recorded losses on disposals, including estimated losses on disposal, of $26.0 million which is included in discontinued operations. Gains on disposal are recorded on the date the sale of the disposal group is consummated. Full or partial reversals of previously reported estimated losses on disposals are recorded upon changes in the fair values and/or carrying values of the disposal groups.

 

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The following table presents the revenues and the components of Income (loss) from discontinued operations, net of tax:

 

     Three Months Ended
March 31,
 
   2009     2008  
   (In thousands)  

Revenues

   $ 102,654     $ 158,211  
                

Income (loss) before income taxes

   $ 22,892     $ (5,421 )

Income tax (expense) benefit

     (7,976 )     5,301  
                

Income (loss) from discontinued operations

     14,916       (120 )
                

Gain (loss) on sale of discontinued operations and estimated (losses) reversals on assets held for sale, before income taxes

     3,984       (25,981 )

Income tax (expense) benefit

     (274 )     2,412  
                

Gain (loss) on sale of discontinued operations

     3,710       (23,569 )
                

Total income (loss) from discontinued operations, net of tax

   $ 18,626     $ (23,689 )
                

Real-Time Publisher Services

Our Real-Time Publisher (“RTP”) Services allows organizations to obtain access to and organize large amounts of constantly updated content, and distribute it, in real time, to enterprises, Web-portal developers, application developers and consumers. RTP Services also make it easier for publishers of all sizes to distribute and track their content feeds, which may improve the reliability and quality of their real-time content. On May 5, 2009, we sold our RTP Services business.

These excerpts taken from the VRSN 10-K filed Mar 3, 2009.

Real-Time Publisher Services

 

Our Real-Time Publisher (“RTP”) Services allow organizations to obtain access to and organize large amounts of constantly updated content, and distribute it, in real time, to enterprises, Web-portal developers, application developers and consumers. RTP Services also make it easier for publishers of all sizes to distribute and track their content feeds, which may improve the reliability and quality of their real-time content.

 

Real-time Publisher Services

 

Our RTP Services allow organizations to obtain access to and organize large amounts of constantly updated content, and distribute it, in real time, to enterprises, Web-portal developers, application developers and consumers. RTP also makes it easier for publishers of all sizes to distribute and track their content feeds, which may improve the reliability and quality of their real-time content.

 

See Note 4, “Assets Held for Sale and Discontinued Operations,” of our Notes to Consolidated Financial Statements in Item 15 of this Form 10-K for further information regarding our disposal groups.

 

Real-time Publisher Services

 

The Company’s Real-Time Publisher services (“RTP”) allow organizations to obtain access to and organize large amounts of constantly updated content, and distribute it, in real time, to enterprises, Web-portal developers, application developers and consumers. RTP also makes it easier for publishers of all sizes to distribute and track their content feeds, which may improve the reliability and quality of their real-time content.

 

The current and historical operations, gains and losses upon disposition, including estimated losses upon disposition, of these disposal groups are presented as discontinued operations for all periods presented in the Company’s Consolidated Statements of Operations. The amounts presented represent direct operating costs of the disposal groups. The Company has determined direct costs consistent with the manner in which the disposal groups were structured and managed during the respective periods. Allocations of indirect costs such as corporate overheads and goodwill impairments that are not directly attributable to a disposal group have not been made.

 

For a period of time, the Company will continue to generate cash flows and will report income statement activity in continuing operations that are associated with these disposal groups and certain of the completed divestitures. The activities that will give rise to these impacts are transitional in nature and generally result from agreements that ensure and facilitate the orderly transfer of business operations. The nature, magnitude and duration of the agreements will vary depending on the specific circumstances of the service, location and/or business need. The agreements can include the following: logistics, customer service, support of financial processes, procurement, human resources, facilities management, data collection and information services. Existing agreements primarily extend for periods less than 12 months.

 

The following table presents the revenues and the components of discontinued operations, net of tax:

 

     Year Ended December 31,  
     2008     2007     2006  
     (In thousands)  

Revenues

   $ 593,700     $ 654,383     $ 585,935  
                        

(Loss) income before income taxes

   $ (18,930 )   $ 16,981     $ 65,767  

Income tax expense

     (26,726 )     (19,930 )     (44,573 )
                        

(Loss) income from discontinued operations

     (45,656 )     (2,949 )     21,194  
                        

(Loss) gain on sale of discontinued operations and estimated losses on assets held for sale, before income taxes

     (433,232 )     1,357       —    

Income tax benefit

     11,604       —         —    
                        

(Loss) gain on sale of discontinued operations

     (421,628 )     1,357       —    
                        

Total (loss) income from discontinued operations

   $ (467,284 )   $ (1,592 )   $ 21,194  
                        

 

 

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VERISIGN, INC. AND SUBSIDIARIES

 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

 

DECEMBER 31, 2008, 2007 AND 2006

 

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