VeriSign, Inc.the trusted provider of Internet infrastructure services for the networked world, today reported financial results for the first quarter ended March 31, 2011.
First Quarter GAAP Financial Results
VeriSign, Inc. and subsidiaries ("Verisign") reported revenue of $182 million for the first quarter of 2011, up 2% from the prior quarter and up 12% from the same quarter in 2010. Verisign reported net income attributable to Verisign stockholders of $41 million and earnings per share attributable to Verisign stockholders of $0.24 on a diluted basis for the first quarter of 2011, compared to net income attributable to Verisign stockholders of $51 million and earnings per share attributable to Verisign stockholders of $0.28 on a diluted basis in the same quarter in 2010. The operating margin was 36.1% for the first quarter of 2011 compared to 33.5% for the same quarter in 2010.
First Quarter Non-GAAP Financial Results
Verisign reported net income attributable to Verisign stockholders of $55 million and earnings per share attributable to Verisign stockholders of $0.32 on a diluted basis for the first quarter of 2011, compared to net income attributable to Verisign stockholders of $40 million and earnings per share attributable to Verisign stockholders of $0.22 on a diluted basis in the same quarter in 2010. The operating margin was 45.9% for the first quarter of 2011 compared to 39.0% for the same quarter in 2010. A table reconciling the GAAP to the non-GAAP results (which excludes items described below) is appended to this release.
"We are pleased to report another record quarter for Verisign in new domain name registrations and strong performance overall in the Naming Services business," said Mark McLaughlin, president and chief executive officer of Verisign. "Our commitment to the continued availability and reliability of the Internet is core to our strategy, and we plan to leverage our extensive expertise and leadership in DNS management to help our customers improve the effectiveness and integrity of Internet communications."
In addition, Verisign announced that its Board of Directors declared a special dividend of $2.75 per share of its common stock. The special dividend will be paid on May 18, 2011 to shareholders of record as of the close of business on May 9, 2011. The ex-dividend date will be May 5, 2011.
"Given the strength of our capital position following the restructuring of the business over the past several years, particularly as a result of the sale of the Authentication Services business last August, the Board voted at a regularly scheduled meeting to return approximately $463 million to the shareholders in the form of a special dividend," said Jim Bidzos, chairman of the board.
Financial Highlights
- During the first quarter, Verisign repurchased approximately 6 million shares for a cost of approximately $200 million.
- Verisign ended the first quarter with Cash, Cash Equivalents,Marketable Securities and Restricted Cash of $1.951 billion, a decrease of $113 million from the prior quarter and an increase of $399 million from the same quarter in 2010.
- Cash flow from operations was $90 million for the first quarter.Excess tax benefits of $4 million for the first quarter that are associated with stock-based compensation were classified as financing cash flows.
- Deferred revenues on March 31, 2011 totaled $699 million, a increase of $36 million from the prior quarter and $81 million from the same quarter in 2010.
- Capital expenditures were $16 million in the first quarter of 2011.
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