VeriSign Reports 9% Year-Over-Year Revenue Growth in Second Quarter 2010
MOUNTAIN VIEW, CA, Aug 02, 2010 (MARKETWIRE via COMTEX News Network) -- VeriSign, Inc. (NASDAQ: VRSN), the trusted provider of Internet infrastructure services for the networked world, today reported financial results for the second quarter ended June 30, 2010.
Second Quarter GAAP Financial Results
VeriSign, Inc. and subsidiaries ("VeriSign") reported revenue of $169 million from continuing operations for the second quarter of 2010, up 4% from the prior quarter and up 9% from the same quarter in 2009. Continuing operations consist primarily of the results of the Naming Services business which is comprised of Registry Services and Network Intelligence and Availability (NIA) Services. NIA includes iDefense and the Distributed Denial of Service (DDoS) mitigation business. Results related to the Authentication Services business for the second quarter have been reclassified as discontinued operations following the announced sale of this business to Symantec. VeriSign reported net income attributable to VeriSign, Inc. stockholders of $35 million and earnings per share attributable to VeriSign, Inc. stockholders of $0.19 on a diluted basis for the second quarter of 2010, compared to net income attributable to VeriSign, Inc. stockholders of $35 million and earnings per share attributable to VeriSign, Inc. stockholders of $0.18 on a diluted basis in the same quarter in 2009. The operating margin was 30.0% for the second quarter of 2010 compared to 27.8% for the same quarter in 2009.
VeriSign reported segment revenue for Naming Services of $168 million for the second quarter of 2010, up 4% from the prior quarter and up 9% from the same quarter in 2009. The non-core Content Portal Services (CPS) business reported $1 million of revenue as part of continuing operations during the second quarter of 2010.
"With the expected closing of the sale of the Authentication Services business to Symantec, VeriSign will be focused on the Naming Services business where we are the market leader and where, with increasing Internet usage globally, we see opportunities for growth," said Mark McLaughlin, president and chief executive officer of VeriSign. "Our second quarter results reflect continued positive Internet trends and continued operational discipline."
Second Quarter Non-GAAP Financial Results
For Naming Services, VeriSign reported net income attributable to VeriSign, Inc. stockholders of $43 million and earnings per share attributable to VeriSign, Inc. stockholders of $0.24 on a diluted basis for the second quarter of 2010, compared to net income attributable to VeriSign, Inc. stockholders of $30 million and earnings per share attributable to VeriSign, Inc. stockholders of $0.16 on a diluted basis in the same quarter in 2009. The operating margin was 40.5% for the second quarter of 2010 compared to 33.9% for the same quarter in 2009. A table reconciling the GAAP to the non-GAAP results (which excludes items described below) is appended to this release.
"Continued quarter-over-quarter revenue growth in Naming Services led to a GAAP operating margin of 30% and non-GAAP operating margin of 40.5%," said Brian Robins, chief financial officer of VeriSign. "Our recurring revenue business model helped us to maintain a healthy balance sheet, and we returned more than $275 million to shareholders in the first half of 2010 through share repurchases."
Financial Highlights
-- Revenue from discontinued operations, consisting of the Authentication
Services business, was $102 million during the second quarter.
-- On July 27, 2010, the Board of Directors approved an additional
authorization for share repurchases of approximately $1.1 billion,
which brings the total amount authorized and remaining under the plan
to $1.5 billion.
-- VeriSign ended the second quarter with Cash, Cash Equivalents,
Marketable Securities and Restricted Cash, excluding cash included as
part of assets held for sale, of $1.339 billion, a decrease of $213
million from the prior quarter and an increase of $28 million from the
same quarter in 2009.
-- In the second quarter, VeriSign repurchased 8.1 million shares of its
common stock for a cost of $227 million.
-- Cash flow from operations, on a consolidated basis, was $149 million
for the second quarter, after giving effect to a classification of
$4 million of excess tax benefits associated with stock-based
compensation as financing cash flows.
-- Deferred revenue on June 30, 2010 totaled $641 million for Naming
Services, an increase of $24 million from the prior quarter and $65
million from the same quarter in 2009.
-- Capital expenditures, on a consolidated basis, were $23 million in the
second quarter.
Business and Corporate Highlights
-- On May 19, 2010, VeriSign announced a definitive agreement to sell its
Authentication Services business to Symantec for approximately $1.28
billion in cash. The transaction is expected to close within 90 days of
May 19, 2010.
-- VeriSign Naming Services ended the quarter with approximately 101.5
million active domain names in the adjusted zone for .com and .net,
representing a 9% increase year-over-year.
-- In the second quarter, VeriSign added 7.9 million new domain name
registrations, representing a 13% increase year-over-year.
-- VeriSign experienced an average daily query load of 63 billion in the
quarter, compared to 54 billion in the prior quarter and 49 billion in
the same quarter in 2009.
-- VeriSign ended the second quarter of 2010 with approximately 2,225
employees on a consolidated basis, compared to 2,200 employees at the
end of the prior quarter. Approximately 1,100 employees were part of
continuing operations as of the end of the second quarter, a number
which is expected to be further reduced over approximately twelve
months.
Non-GAAP Items
Non-GAAP financial results exclude the following items that are included under GAAP: discontinued operations, non-core business in continuing operations, stock-based compensation, amortization of other intangible assets, impairments of goodwill and other intangible assets, restructuring costs and non-cash interest expense. Non-GAAP financial information is also adjusted for a 30% tax rate which differs from the GAAP tax rate. A table reconciling the GAAP to non-GAAP net income is appended to this release. All non-GAAP figures for each period presented herein have been conformed to exclude the foregoing items under GAAP. Prior disclosures of non-GAAP figures do not exclude the same items and as such should not be used for comparison purposes.
Today's Conference Call
VeriSign will host a live teleconference call today at 2:00 p.m. (PDT) to review the second quarter results. The call will be accessible by direct dial at (888) 676-VRSN (US) or (913) 312-1524 (international). A listen-only live web cast and accompanying slide presentation of the earnings conference call will also be available at http://investor.verisign.com. A replay of this call will be available at (888) 203-1112 or (719) 457-0820 (passcode: 5120314) beginning at 5:00 p.m. (PDT) on August 2 and will run through August 9 at 5:00 p.m (PDT). This press release and the financial information discussed on today's conference call are available on the Investor Relations section of the VeriSign website at http://investor.verisign.com.
About VeriSign
VeriSign, Inc. (NASDAQ: VRSN) is the trusted provider of Internet infrastructure services for the networked world. Billions of times each day, VeriSign enables companies and consumers all over the world to connect online with confidence. Additional news and information about the company is available at www.verisign.com.
VRSNF
Statements in this announcement other than historical data and information constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended. These statements involve risks and uncertainties that could cause VeriSign's actual results to differ materially from those stated or implied by such forward-looking statements. The potential risks and uncertainties include, among others, the uncertainty of future revenue and profitability and potential fluctuations in quarterly operating results due to such factors as increasing competition and pricing pressure from competing services offered at prices below our prices; the current global economic downturn; challenges to ongoing privatization of Internet administration; new or existing governmental laws and regulations; changes in customer behavior; the inability of VeriSign to successfully develop and market new services; the uncertainty of whether our new services will achieve market acceptance or result in any revenues; system interruptions; security breaches; attacks on the Internet by hackers, viruses, or intentional acts of vandalism; challenges to the building of trust on the Internet; the uncertainty of the expense and duration of transition services and requests for indemnification relating to completed divestitures; the uncertainty of whether Project Apollo will achieve its stated objectives; and the risk that the sale of VeriSign's Authentication Services business to Symantec may not be consummated or may be delayed as a result of the inability of the parties to obtain required governmental approvals, the assertion of claims by third parties or other reasons. More information about potential factors that could affect the company's business and financial results is included in VeriSign's filings with the Securities and Exchange Commission, including in the Company's Annual Report on Form 10-K for the year ended December 31, 2009, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. VeriSign undertakes no obligation to update any of the forward-looking statements after the date of this announcement.
VERISIGN, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
(Unaudited)
June 30, December 31,
2010 2009
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents $ 862,923 $ 1,477,166
Marketable securities 474,356 185
Accounts receivable, net 16,194 63,133
Prepaid expenses and other current assets 85,021 167,531
Assets held for sale 681,749 1,043
----------- -----------
Total current assets 2,120,243 1,709,058
----------- -----------
Property and equipment, net 190,807 403,821
Goodwill 52,527 289,980
Other intangible assets, net 3,266 22,420
Other assets 25,122 44,865
----------- -----------
Total long-term assets 271,722 761,086
----------- -----------
Total assets $ 2,391,965 $ 2,470,144
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 165,043 $ 243,967
Deferred revenues 437,288 642,507
Liabilities related to assets held for sale 340,515 -
----------- -----------
Total current liabilities 942,846 886,474
----------- -----------
Long-term deferred revenues 203,911 245,734
Convertible debentures, including contingent
interest derivative 575,933 574,378
Other long-term liabilities 193,133 164,894
----------- -----------
Total long-term liabilities 972,977 985,006
----------- -----------
Total liabilities 1,915,823 1,871,480
----------- -----------
Commitments and contingencies
Stockholders' equity:
VeriSign, Inc. stockholders' equity:
Preferred stock--par value $.001 per share;
Authorized shares: 5,000,000;
Issued and outstanding shares: none - -
Common stock--par value $.001 per share;
Authorized shares: 1,000,000,000;
Issued and outstanding shares: 174,907,760
excluding 134,801,346 held in treasury, at
June 30, 2010; and 183,299,463, excluding
124,434,684 held in treasury, at
December 31, 2009 310 308
Additional paid-in capital 21,519,042 21,736,209
Accumulated deficit (21,107,866) (21,194,435)
Accumulated other comprehensive income 12,404 7,659
----------- -----------
Total VeriSign, Inc. stockholders' equity 423,890 549,741
Noncontrolling interest in subsidiary 52,252 48,923
----------- -----------
Total stockholders' equity 476,142 598,664
----------- -----------
Total liabilities and stockholders' equity $ 2,391,965 $ 2,470,144
=========== ===========
VERISIGN, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
-------------------- --------------------
2010 2009 2010 2009
--------- --------- --------- ---------
Revenues $ 168,684 $ 154,338 $ 331,178 $ 303,990
--------- --------- --------- ---------
Costs and expenses:
Cost of revenues 40,590 42,977 80,322 88,221
Sales and marketing 23,182 18,116 44,630 34,075
Research and development 13,824 12,985 26,194 26,805
General and administrative 32,957 37,339 67,980 75,881
Restructuring and other
charges, net 7,539 (61) 7,838 2,814
--------- --------- --------- ---------
Total costs and expenses 118,092 111,356 226,964 227,796
--------- --------- --------- ---------
Operating income 50,592 42,982 104,214 76,194
Other loss, net (8,116) (10,485) (15,276) (15,433)
--------- --------- --------- ---------
Income from continuing
operations before income taxes 42,476 32,497 88,938 60,761
Income tax expense (16,211) (15,593) (32,905) (22,812)
--------- --------- --------- ---------
Income from continuing
operations, net of tax 26,265 16,904 56,033 37,949
Income from discontinued
operations, net of tax 10,109 18,868 32,781 63,338
--------- --------- --------- ---------
Net income 36,374 35,772 88,814 101,287
Less: Income from discontinued
operations, net of tax,
attributable to noncontrolling
interest in subsidiary (1,161) (898) (2,245) (1,393)
--------- --------- --------- ---------
Net income attributable to
VeriSign, Inc. stockholders $ 35,213 $ 34,874 $ 86,569 $ 99,894
========= ========= ========= =========
Basic income per share
attributable to VeriSign, Inc.
stockholders from:
Continuing operations $ 0.15 $ 0.09 $ 0.31 $ 0.20
Discontinued operations 0.04 0.09 0.17 0.32
--------- --------- --------- ---------
Net income $ 0.19 $ 0.18 $ 0.48 $ 0.52
========= ========= ========= =========
Diluted income per share
attributable to VeriSign, Inc.
stockholders from:
Continuing operations $ 0.14 $ 0.09 $ 0.31 $ 0.20
Discontinued operations 0.05 0.09 0.16 0.32
--------- --------- --------- ---------
Net income $ 0.19 $ 0.18 $ 0.47 $ 0.52
========= ========= ========= =========
Shares used to compute net
income per share attributable
to VeriSign, Inc.
stockholders:
Basic 181,120 192,649 182,121 192,481
========= ========= ========= =========
Diluted 182,753 193,426 183,480 193,116
========= ========= ========= =========
Amounts attributable to
VeriSign, Inc. stockholders:
Income from continuing
operations, net of tax $ 26,265 $ 16,904 $ 56,033 $ 37,949
Income from discontinued
operations, net of tax 8,948 17,970 30,536 61,945
--------- --------- --------- ---------
Net income attributable to
VeriSign, Inc.
stockholders $ 35,213 $ 34,874 $ 86,569 $ 99,894
========= ========= ========= =========
The following table presents
the classification of
stock-based compensation:
Three Months Ended Six Months Ended
June 30, June 30,
-------------------- --------------------
2010 2009 2010 2009
--------- --------- --------- ---------
(In thousands)
Stock-based compensation:
Cost of revenues $ 1,365 $ 995 $ 2,311 $ 1,887
Sales and marketing 1,488 1,171 2,624 2,102
Research and development 1,240 774 2,316 1,532
General and administrative 5,256 5,547 10,494 10,692
Restructuring and other
charges, net - 38 133 548
--------- --------- --------- ---------
Stock-based compensation for
continuing operations 9,349 8,525 17,878 16,761
Discontinued operations 3,876 5,644 7,432 11,335
--------- --------- --------- ---------
Total stock-based compensation $ 13,225 $ 14,169 $ 25,310 $ 28,096
========= ========= ========= =========
VERISIGN, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Six Months Ended
June 30,
------------------------
2010 2009
----------- -----------
Cash flows from operating activities:
Net income $ 88,814 $ 101,287
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation of property and equipment and
amortization of other intangible assets 39,806 41,398
Stock-based compensation 25,310 28,096
Excess tax benefit associated with stock-based
compensation (12,453) (94,529)
Other, net 12,949 17,406
Changes in operating assets and liabilities,
excluding the effects of acquisitions and
divestitures:
Accounts receivable 10,084 8,802
Prepaid expenses and other assets 27,397 (27,559)
Accounts payable and accrued liabilities (2,867) 14,284
Deferred revenues 61,280 32,080
----------- -----------
Net cash provided by operating activities 250,320 121,265
----------- -----------
Cash flows from investing activities:
Proceeds from maturities and sales of
marketable securities and investments 196,045 117,901
Purchases of marketable securities and
investments (662,275) (750)
Purchases of property and equipment (42,772) (40,815)
Proceeds received from divestiture of
businesses, net of cash contributed 15,583 235,500
Other investing activities (3,773) (2,716)
----------- -----------
Net cash (used in) provided by investing
activities (497,192) 309,120
----------- -----------
Cash flows from financing activities:
Proceeds from issuance of common stock from
option exercises and employee stock purchase
plans 28,002 20,945
Repurchases of common stock (281,943) (22,637)
Excess tax benefit associated with stock-based
compensation 12,453 94,529
Other financing activities (736) (101)
----------- -----------
Net cash (used in) provided by financing
activities (242,224) 92,736
----------- -----------
Effect of exchange rate changes on cash and cash
equivalents (1,791) (3,837)
Cash and cash equivalents included in assets held
for sale (123,356) -
----------- -----------
Net (decrease) increase in cash and cash
equivalents (614,243) 519,284
Cash and cash equivalents at beginning of period 1,477,166 789,068
----------- -----------
Cash and cash equivalents at end of period $ 862,923 $ 1,308,352
=========== ===========
Supplemental cash flow disclosures:
Cash paid for interest, net of capitalized
interest $ 19,811 $ 19,521
=========== ===========
VERISIGN, INC. AND SUBSIDIARIES
STATEMENTS OF OPERATIONS RECONCILIATION
(In thousands, except per share data)
(Unaudited)
Three Months Ended Three Months Ended
June 30, 2010 June 30, 2009
----------------------- ----------------------
Net Income Net Income
attributable attributable
to VeriSign, to VeriSign,
Operating Inc. Operating Inc.
Income Stockholders Income Stockholders
----------- ---------- ---------- ----------
GAAP as reported $ 50,592 $ 35,214 $ 42,982 $ 34,874
Discontinued operations (8,948) (17,970)
Non-core business in
continuing operations
(1) (2) 231 300 559 633
Adjustments:
Stock-based compensation 9,302 9,302 8,323 8,323
Amortization of other
intangible assets 323 323 85 85
Restructuring costs 7,539 7,539 (13) (13)
Non-cash interest expense 1,810 1,648
Tax adjustment (3) (2,362) 2,642
----------- ---------- ---------- ----------
Non-GAAP as adjusted $ 67,987 $ 43,178 $ 51,936 $ 30,222
=========== ========== ========== ==========
Diluted shares 182,753 193,426
Per diluted share, non-GAAP
as adjusted $ 0.24 $ 0.16
========== ==========
(1) As of June 30, 2010, the Company's business consists of the following
reportable segments: (a) Naming Services, which consists of Registry
Services and Network Intelligence and Availability ("NIA") Services; and
(b) Other Services, which consists of the continuing operations of Content
Portal Services ("CPS"), our remaining non-core business. NIA Services was
formerly known as VeriSign Internet Defense Services.
(2) Results of the non-core business in continuing operations during the
three months ended June 30, 2010 and 2009 includes stock-based compensation
of $47 and $145, respectively.
(3) Non-GAAP tax is calculated as 30% of income from continuing operations.
VeriSign provides quarterly and annual financial statements that are prepared in accordance with generally accepted accounting principles (GAAP). Along with this information, we typically disclose and discuss certain non-GAAP financial information in our quarterly earnings release, on investor conference calls and during investor conferences and related events. This non-GAAP financial information does not include the following types of financial measures that are included in GAAP: discontinued operations, non-core business in continuing operations, stock-based compensation, amortization of other intangible assets, impairments of goodwill and other intangible assets, restructuring costs and non-cash interest expense. Non-GAAP financial information is also adjusted for a 30% tax rate which differs from the GAAP tax rate. All non-GAAP figures for each period presented above have been conformed to exclude the foregoing items under GAAP. Prior disclosures of non-GAAP figures do not exclude the same items and as such should not be used for comparison purposes.
Management believes that this non-GAAP financial data supplements our GAAP financial data by providing investors with additional information that allows them to have a clearer picture of the company's core operations. The presentation of this additional information is not meant to be considered in isolation nor as a substitute for results prepared in accordance with GAAP. We believe that the non-GAAP information enhances the investors' overall understanding of our financial performance and the comparability of the company's operating results from period to period. Above, we have provided a reconciliation of the non-GAAP financial information that we provide each quarter with the comparable financial information reported in accordance with GAAP for the given period.
SUPPLEMENTAL FINANCIAL INFORMATION
Three months ended
---------------------------------------------------------
June 30, March 31, December 31, September 30, June 30,
2010 2010 2009 2009 2009
---------- ---------- ------------ ------------- --------
Revenues from Naming
Services (1) $ 167,881 $ 161,583 $ 158,741 $ 155,480 $153,418
========== ========== ============ ============= ========
VERISIGN, INC. AND SUBSIDIARIES
STATEMENTS OF OPERATIONS RECONCILIATION
(In thousands, except per share data)
(Unaudited)
Six Months Ended Six Months Ended
June 30, 2010 June 30, 2009
----------------------- ----------------------
Net Income Net Income
attributable attributable
to VeriSign, to VeriSign,
Operating Inc. Operating Inc.
Income Stockholders Income Stockholders
----------- ---------- ---------- ----------
GAAP as reported $ 104,214 $ 86,570 $ 76,194 $ 99,894
Discontinued operations (30,536) (61,945)
Non-core business in
continuing operations
(1) (2) 1,392 1,383 242 (574)
Adjustments:
Stock-based compensation 17,623 17,623 15,868 15,868
Amortization of other
intangible assets 647 647 730 730
Restructuring costs 7,773 7,773 3,474 3,474
Non-cash interest expense 3,651 3,298
Tax adjustment (3) (3,101) (2,255)
----------- ---------- ----------- ----------
Non-GAAP as adjusted $ 131,649 $ 84,010 $ 96,508 $ 58,490
=========== ========== =========== ==========
Diluted shares 183,480 193,116
Per diluted share, non-GAAP
as adjusted $ 0.46 $ 0.30
========== ==========
(1) As of June 30, 2010, the Company's business consists of the following
reportable segments: (a) Naming Services, which consists of Registry
Services and Network Intelligence and Availability ("NIA") Services; and
(b) Other Services, which consists of the continuing operations of Content
Portal Services ("CPS"), our remaining non-core business. NIA Services was
formerly known as VeriSign Internet Defense Services.
(2) Results of the non-core business in continuing operations during the
six months ended June 30, 2010 and 2009 includes stock-based compensation
of $135 and $297, respectively.
(3) Non-GAAP tax is calculated as 30% of income from continuing operations.
VeriSign provides quarterly and annual financial statements that are prepared in accordance with generally accepted accounting principles (GAAP). Along with this information, we typically disclose and discuss certain non-GAAP financial information in our quarterly earnings release, on investor conference calls and during investor conferences and related events. This non-GAAP financial information does not include the following types of financial measures that are included in GAAP: discontinued operations, non-core business in continuing operations, stock-based compensation, amortization of other intangible assets, impairments of goodwill and other intangible assets, restructuring costs and non-cash interest expense. Non-GAAP financial information is also adjusted for a 30% tax rate which differs from the GAAP tax rate. All non-GAAP figures for each period presented above have been conformed to exclude the foregoing items under GAAP. Prior disclosures of non-GAAP figures do not exclude the same items and as such should not be used for comparison purposes.
Management believes that this non-GAAP financial data supplements our GAAP financial data by providing investors with additional information that allows them to have a clearer picture of the company's core operations. The presentation of this additional information is not meant to be considered in isolation nor as a substitute for results prepared in accordance with GAAP. We believe that the non-GAAP information enhances the investors' overall understanding of our financial performance and the comparability of the company's operating results from period to period. Above, we have provided a reconciliation of the non-GAAP financial information that we provide each quarter with the comparable financial information reported in accordance with GAAP for the given period.
VERISIGN, INC. AND SUBSIDIARIES
STATEMENTS OF OPERATIONS RECONCILIATION
(In thousands, except per share data)
(Unaudited)
Three Months Ended Three Months Ended
March 31, 2010 March 31, 2009
----------------------- ----------------------
Net Income Net Income
attributable attributable
to VeriSign, to VeriSign,
Operating Inc. Operating Inc.
Income Stockholders Income Stockholders
----------- ---------- ---------- ----------
GAAP as reported $ 53,622 $ 51,356 $ 33,212 $ 65,020
Discontinued operations (21,588) (43,975)
Non-core business in
continuing operations
(1) (2) 1,161 1,083 (317) (1,207)
Adjustments:
Stock-based compensation 8,321 8,321 7,545 7,545
Amortization of other
intangible assets 324 324 645 645
Restructuring costs 234 234 3,487 3,487
Non-cash interest expense 1,841 1,650
Tax adjustment (3) (739) (4,897)
----------- ---------- ---------- ----------
Non-GAAP as adjusted $ 63,662 $ 40,832 $ 44,572 $ 28,268
=========== ========== ========== ==========
Diluted shares 184,259 192,804
Per diluted share, non-GAAP
as adjusted $ 0.22 $ 0.15
========== ==========
(1) As of March 31, 2010, the Company's business consists of the following
reportable segments: (a) Naming Services, which consists of Registry
Services and Network Intelligence and Availability ("NIA") Services; and
(b) Other Services, which consists of the continuing operations of Content
Portal Services ("CPS"), our remaining non-core business. NIA Services was
formerly known as VeriSign Internet Defense Services.
(2) Results of the non-core business in continuing operations during the
three months ended March 31, 2010 and 2009 includes stock-based
compensation of $88 and $152, respectively.
(3) Non-GAAP tax is calculated as 30% of income from continuing operations.
VeriSign provides quarterly and annual financial statements that are prepared in accordance with generally accepted accounting principles (GAAP). Along with this information, we typically disclose and discuss certain non-GAAP financial information in our quarterly earnings release, on investor conference calls and during investor conferences and related events. This non-GAAP financial information does not include the following types of financial measures that are included in GAAP: discontinued operations, non-core business in continuing operations, stock-based compensation, amortization of other intangible assets, impairments of goodwill and other intangible assets, restructuring costs and non-cash interest expense. Non-GAAP financial information is also adjusted for a 30% tax rate which differs from the GAAP tax rate. All non-GAAP figures for each period presented above have been conformed to exclude the foregoing items under GAAP. Prior disclosures of non-GAAP figures do not exclude the same items and as such should not be used for comparison purposes.
Management believes that this non-GAAP financial data supplements our GAAP financial data by providing investors with additional information that allows them to have a clearer picture of the company's core operations. The presentation of this additional information is not meant to be considered in isolation nor as a substitute for results prepared in accordance with GAAP. We believe that the non-GAAP information enhances the investors' overall understanding of our financial performance and the comparability of the company's operating results from period to period. Above, we have provided a reconciliation of the non-GAAP financial information that we provide each quarter with the comparable financial information reported in accordance with GAAP for the given period.
Contacts Investor Relations: Nancy Fazioli ir@verisign.com 650-426-5146 Media Relations: Brad Williams brwilliams@verisign.com 650-426-5298
SOURCE: VeriSign, Inc.
mailto:ir@verisign.com mailto:brwilliams@verisign.com
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