VeriSign Inc. Earnings: A Turnaround to a Profit

S&P 500 (NYSE:SPY) component VeriSign Inc. (NASDAQ:VRSN) reported its results for the fourth quarter. VeriSign provides Internet infrastructure services for the networked world.

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VeriSign Earnings Cheat Sheet for the Fourth Quarter

Results: Reported a profit of $53.8 million (34 cents per diluted share) in the quarter. The application software company had a net loss of $40.5 million or a loss of 23 cents per share in the year earlier quarter.

Revenue: Rose 13.9% to $203.6 million from the year earlier quarter.

Actual vs. Wall St. Expectations: VRSN reported adjusted net income of 40 cents per share. By that measure, the company beat the mean estimate of 38 cents per share. Analysts were expecting revenue of $203.5 million.

Quoting Management: “In a year that saw strong growth in global internet adoption, increased demand on our DNS infrastructure, and a growing need for network security services, Verisign delivered security and stability. We were able to both invest in strengthening our infrastructure, and manage our business for growth. Also in 2011, we completed four years of board-directed restructuring, including divesting non-core businesses, and relocating our corporate headquarters. We returned divestiture proceeds to our shareholders. This restructuring has resulted in a more efficient, focused Verisign that we believe is better prepared for the opportunities ahead. We delivered for both the global community of Internet users that increasingly rely on us, and for our shareholders,” said Jim Bidzos, chairman and chief executive officer of Verisign.

Key Stats:

The company has now topped analyst estimates for the last three quarters. It beat the mark by 4 cents in the third quarter and by 2 cents in the second quarter.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the first quarter of the next fiscal year is 39 cents per share, up from 35 cents ninety days ago. For the fiscal year, the average estimate has moved up from $1.26 a share to $1.33 over the last ninety days.

Competitors to Watch: Symantec Corporation (NASDAQ:SYMC), Tucows Inc. (AMEX:TCX), Innodata Isogen, Inc. (NASDAQ:INOD), Microsoft Corporation (NASDAQ:MSFT), InterNAP Network Services (NASDAQ:INAP), Web.com Group, Inc. (NASDAQ:WWWW), Yahoo! Inc. (NASDAQ:YHOO), Neustar, Inc (NYSE:NSR), SAVVIS, Inc. (NASDAQ:SVVS), and Wave Systems Corp. (NASDAQ:WAVX).

Stock Performance: Shares of VRSN were down 1.3% from the previous close.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com