VeriSign Earnings Cheat Sheet for the Second Quarter
Results: Swung to a loss of $10.6 million (6 cents per diluted share) in the quarter. The application software company had net income of $35.2 million or 19 cents per share in the year earlier quarter.
Revenue: Rose 12.5% to $189.8 million from the year earlier quarter.
Actual vs. Wall St. Expectations: VRSN reported adjusted net income of 38 cents per share. By that measure, the company beat the mean estimate of 30 cents per share. Analysts were expecting revenue of $191.3 million.
Quoting Management: “We are pleased with our performance in the second quarter,” said Mark McLaughlin, president and chief executive officer of Verisign. “We are proud of our track record of maintaining 100 percent operational uptime for .com and .net and that we have been entrusted with the operation of .net for an additional six years.” “We remain committed to delivering value to our shareholders through continued strategic focus, execution, and operating discipline,” said Brian Robins, chief financial officer of Verisign. “In addition to paying out the special dividend during the second quarter, we utilized $100 million to repurchase shares of our common stock.”
A year-over-year revenue increase last quarter snaps a streak of four consecutive quarters of revenue declines. The worst quarter in that span was the second quarter of the last fiscal year, which saw a 34.3% decrease.
The company topped expectations last quarter after falling short of forecasts in the first quarter with net income of 27 cents versus a mean estimate of net income of 28 cents per share.
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).
(Source: Xignite Financials)