This excerpt taken from the VRSN 8-K filed Sep 29, 2005.
VeriSign Announces Preliminary Q3 2005 Financial Results
MOUNTAIN VIEW, CA September 29, 2005 VeriSign, Inc. (Nasdaq: VRSN), the leading provider of intelligent infrastructure services for the Internet and telecommunications networks, today announced its preliminary results for the third quarter ending September 30, 2005.
Based on preliminary information available at this time, VeriSign expects total revenue for the quarter to be approximately $410 million, as compared to previous guidance of $435-440 million. On a non-GAAP basis, using a 30% effective tax rate on non-GAAP pre-tax income, earnings per share for the third quarter is expected to be $0.27 per fully-diluted share, consistent with previous guidance for non-GAAP earnings per fully-diluted share of $0.27. These non-GAAP results exclude the following items, which are included under GAAP: amortization of intangible assets related to acquisitions, in-process research and development, the net gain or loss on the sale of investments, restructuring and other recoveries/charges, and stock-based compensation charges related to acquisitions.
VeriSign experienced mixed results in the third quarter as the strength in our Internet and core communications businesses was not enough to offset a revenue shortfall in the mobile content area due to higher than expected seasonal churn and further developments in industry requirements and guidelines for the marketing of mobile content in Europe, said Stratton Sclavos, Chairman and Chief Executive Officer of VeriSign. While the short term dynamics in the content business are somewhat unpredictable, we still believe the long term opportunity is significant and, when coupled with the strength of our other businesses, will provide excellent value for our shareholders.
Performance in the Content Services business is expected to be below managements expectations for the third quarter while performance in the Internet Services Group, as well as the Communications and Commerce groups, is anticipated to be in-line or above previous guidance.
The company also announced that it repurchased approximately 9 million shares of its stock on the open market in the third quarter for an aggregate value of $215 million.