Verisign reporter financial results for the third quarter ended September 30,2011 .The results show 14% year-over0year revenue growth in third quarter of 2011 .
You can read the press release after the jump:"VeriSign, Inc. (NASDAQ: VRSN), the trusted provider of Internet infrastructure services for the networked world, today reported financial results for the third quarter ended Sept. 30, 2011.
Third Quarter GAAP Financial Results
VeriSign, Inc. and subsidiaries ("Verisign") reported revenue of $197 million for the third quarter of 2011, up 4% from the prior quarter and up 14% from the same quarter in 2010. Verisign reported net income of $59 million and diluted earnings per share of $0.36 for the third quarter of 2011. This is compared to net income attributable to Verisign stockholders of $785 million and earnings per share attributable to Verisign stockholders of $4.48 on a diluted basis in the same quarter in 2010, which included a net gain of $737 million, net of tax of $244 million, on the sale of the Authentication Services business. The operating margin was 45.2% for the third quarter of 2011 compared to 34.8% for the same quarter in 2010.
Third Quarter Non-GAAP Financial Results
Verisign reported net income of $64 million and diluted earnings per share of $0.39 for the third quarter of 2011, compared to net income of $49 million and diluted earnings per share of $0.28 in the same quarter in 2010. The operating margin was 50.1% for the third quarter of 2011 compared to 43.1% 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.
"The third quarter was another solid quarter marked by continued strong operating and financial performance," said Jim Bidzos, executive chairman, president and chief executive officer of Verisign.
"We remain committed to our long-term financial priorities of growth and a strong balance sheet," said John Calys, interim chief financial officer of Verisign.
In addition, Verisign announced that the company will not be conducting a search for a new chief executive officer and that Jim Bidzos will stay in this role going forward.
Financial Highlights
- During the third quarter of 2011, Verisign repurchased approximately 7.9 million shares of the company's common stock for a cost of $235 million.
- Verisign ended the third quarter of 2011 with Cash, Cash Equivalents, Marketable Securities and Restricted Cash of $1.239 billion, a decrease of $160 million from the prior quarter and a decrease of $1.313 billion from the same quarter in 2010.
- Cash flow from operations was $108 million for the third quarter of 2011. Excess tax benefits of $1 million for the third quarter of 2011 that are associated with stock-based compensation were classified as financing cash flows.
- Deferred revenues ended the third quarter of 2011 totaling $723 million, an increase of $9 million from the prior quarter and $69 million from the same quarter in 2010.
- Capital expenditures were $34 million in the third quarter of 2011.
Business and Corporate Highlights
- Verisign Registry Services ended the quarter with 112 million active domain names in the adjusted zone for .com and .net, representing an 8% increase year-over-year.
- In the third quarter of 2011, Verisign processed 7.9 million new domain name registrations, representing a 6% increase year-over-year.
- On Sept. 26, 2011 Verisign announced that the company had appointed John Calys, vice president and controller to the additional position of interim chief financial officer.
- Verisign ended the third quarter of 2011 with 1,010 employees, compared to 1,040 at the end of the prior quarter.