VeriSign Reports Fourth Quarter and 2009 Results
MOUNTAIN VIEW, CA, Feb 02, 2010 (MARKETWIRE via COMTEX News Network) -- VeriSign, Inc. (NASDAQ: VRSN), the leading provider of trusted Internet infrastructure services, today reported financial results for the fourth quarter of 2009 and year ended December 31, 2009.
Fourth Quarter GAAP Financial Results
VeriSign reported revenue of $263 million from continuing operations for the fourth quarter of 2009, compared to $249 million in the same quarter in 2008. VeriSign reported net income attributable to VeriSign, Inc. and subsidiaries of $92 million and earnings per share attributable to VeriSign, Inc. and subsidiaries of $0.48 on a diluted basis for the fourth quarter of 2009, compared to net loss attributable to VeriSign, Inc. and subsidiaries of $(96) million and net loss per share attributable to VeriSign, Inc. and subsidiaries of $(0.50) on a diluted basis in the same quarter in 2008. The operating margin for the fourth quarter of 2009, which includes a $4 million out of period VeriSign Japan related depreciation adjustment, was 31.4% compared to (2.0)% in the same quarter in 2008.
VeriSign reported segment revenue for Internet Infrastructure and Identity Services ("3IS"), or the "core" businesses of Naming Services and Authentication Services, of $262 million for the fourth quarter of 2009, up 2% from the prior quarter and up 5% from the same quarter in 2008.
Fourth Quarter Non-GAAP Financial Results
For its core businesses, VeriSign reported net income attributable to VeriSign, Inc. and subsidiaries of $59 million and earnings per share attributable to VeriSign, Inc. and subsidiaries of $0.31 on a diluted basis for the fourth quarter of 2009, compared to net income attributable to VeriSign, Inc. and subsidiaries of $54 million and earnings per share attributable to VeriSign, Inc. and subsidiaries of $0.28 on a diluted basis in the same quarter in 2008. The operating margin for the fourth quarter of 2009, which includes a $4 million out of period VeriSign Japan related depreciation adjustment, was 36.8% compared to 33.7% in the same quarter in 2008. A table reconciling the GAAP to the non-GAAP results (which excludes items described below) is appended to this release.
"We had a good year in 2009 in which we delivered solid top line revenue growth while increasing the operating leverage in our core businesses and completing the divestitures of our non-core businesses," said Mark McLaughlin, president and chief executive officer of VeriSign. "I believe we're well positioned for 2010 and beyond."
2009 GAAP Financial Results
For the year ended December 31, 2009, VeriSign reported revenue of $1.031 billion from continuing operations, compared to $965 million in 2008. VeriSign reported net income attributable to VeriSign, Inc. and subsidiaries of $246 million and earnings per share attributable to VeriSign, Inc. and subsidiaries of $1.28 on a diluted basis, compared to net loss attributable to VeriSign, Inc. and subsidiaries of $(374) million and net loss per share attributable to VeriSign, Inc. and subsidiaries of $(1.87) on a diluted basis in 2008. The operating margin for 2009 was 30.4% compared to 6.6% in 2008.
VeriSign reported segment revenue for 3IS of $1.026 billion, up 8% year-over-year.
2009 Non-GAAP Financial Results
For its core businesses, VeriSign reported net income attributable to VeriSign, Inc. and subsidiaries of $247 million and earnings per share attributable to VeriSign, Inc. and subsidiaries of $1.28 on a diluted basis, compared to net income attributable to VeriSign, Inc. and subsidiaries of $201 million and earnings per share attributable to VeriSign, Inc. and subsidiaries of $1.00 on a diluted basis in 2008. The operating margin for 2009 was 37.7% compared to 33.5% in 2008. A table reconciling the GAAP to the non-GAAP results (which excludes items described below) is appended to this release.
"In 2009, VeriSign increased revenue, improved productivity and maintained a healthy balance sheet," said Brian Robins, chief financial officer of VeriSign. "In 2010, we will remain focused on our two key long-term financial priorities: growth and increased operating leverage."
Business and Corporate Highlights
-- VeriSign Naming Services ended the quarter with approximately 96.7 million active domain names in the adjusted zone for .com and .net, representing a 7% increase year-over-year. -- On December 17, 2009, VeriSign announced that as of July 1, 2010, the registry fee for .com domain names will increase from $6.86 to $7.34 and that the registry fee for .net domain names will increase from $4.23 to $4.65. -- VeriSign reports average daily query load of 52 billion in the quarter, compared to 54 billion in the prior quarter and 35 billion in the same quarter in 2008. -- During the quarter, VeriSign announced its strategic approach for working with the Internet community to deploy DNS Security Extensions (DNSSEC) in the .com and .net Top Level Domain Names (TLDs), thereby helping to protect the Internet's Domain Name System (DNS) from "man in the middle" and cache poisoning attacks. -- VeriSign Business Authentication Services ended the quarter with 1.22 million SSL certificates in the installed base, an increase of 9% over the same quarter last year. -- VeriSign completed the divestiture of 14 non-core businesses, in addition to the sale of the remaining interest in the Jamba joint venture, raising proceeds in excess of $765 million. -- In November 2009, the company closed the sale of MDG Services, a carve-out of the former Messaging business and the final non-core business to be divested. Earlier in the quarter, VeriSign also completed the sales of Global Security Consulting and Messaging and Mobile Media Services. -- During the quarter, the company decided to wind down its Content Portal Services (CPS) business, and accordingly reclassified CPS's results into continuing operations for all periods presented. The Pre-Pay Billing and Payment Services business was fully wound down in October 2009, and its results of operations were reclassified into discontinued operations for all periods presented.
Financial Highlights
-- Naming Services delivered $159 million of revenue in the fourth quarter of 2009, up 9% from the same quarter in 2008. Authentication Services delivered revenue of $103 million in the fourth quarter of 2009, up 1% from the same quarter in 2008. -- General and administrative expenses increased in the fourth quarter primarily due to a $4 million out of period depreciation adjustment correcting for certain assets held at VeriSign Japan that were depreciated over a period longer than their useful lives. -- In the fourth quarter, VeriSign repurchased approximately 9 million shares of its common stock for a cost of $208 million. For the full year, VeriSign repurchased approximately 11 million shares for an aggregate cost of $253 million. -- VeriSign ended the fourth quarter with Cash, Cash Equivalents and Restricted Cash of $1.48 billion, an increase of $45 million from the prior quarter and $688 million from the end of 2008. -- Cash flow from operations, on a consolidated basis, was approximately $173 million for the fourth quarter and approximately $395 million for the full year, after giving effect to a classification of $26 million of year-to-date excess tax benefits associated with stock-based compensation as financing cash flows. -- Deferred revenue on December 31, 2009 totaled $888 million for continuing operations, an increase of $7 million from the prior quarter and $43 million from the end of 2008. -- During the fourth quarter, VeriSign completed the purchase of its previously-leased Dulles, Virginia office and data center property for approximately $26 million. -- Capital expenditures, on a consolidated basis, were approximately $51 million for the fourth quarter and $117 million for the full year.
Non-GAAP Items
Non-GAAP financial results exclude the following items that are included under GAAP: discontinued operations, non-core businesses 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 may not exclude these 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. (PST) to review the fourth quarter and fiscal year results. The call will be accessible by direct dial at (888) 676-VRSN (US) or (913) 312-0724 (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: 7324216) beginning at 5:00 p.m. (PST) on February 2 and will run through February 9. 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 helps companies and consumers all over the world engage in communications and commerce 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, market acceptance of our existing services, the inability of VeriSign to successfully develop and market new services, the uncertainty of whether new services as provided by VeriSign will achieve market acceptance or result in any revenues and the uncertainty of the expense and duration of transition services and requests for indemnification relating to completed divestitures. 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, 2008, 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 press release.
VERISIGN, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
(Unaudited)
December 31, December 31,
2009 2008
----------- -----------
As Adjusted
ASSETS (1)
Current assets:
Cash and cash equivalents $ 1,477,166 $ 789,068
Accounts receivable, net of allowance for
doubtful accounts of $490 at December 31,
2009 and $1,208 at December 31, 2008 63,133 83,749
Prepaid expenses and other current assets 167,716 268,178
Assets held for sale 1,043 483,840
----------- -----------
Total current assets 1,709,058 1,624,835
----------- -----------
Property and equipment, net 403,821 385,498
Goodwill 289,980 283,109
Other intangible assets, net 22,420 35,312
Other assets 44,865 38,118
----------- -----------
Total long-term assets 761,086 742,037
----------- -----------
Total assets $ 2,470,144 $ 2,366,872
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 234,727 $ 263,535
Accrued restructuring costs 6,605 28,920
Deferred revenues 653,702 629,800
Other current liabilities 2,635 5,463
Liabilities related to assets held for sale - 49,160
----------- -----------
Total current liabilities 897,669 976,878
----------- -----------
Long-term deferred revenues 234,539 215,281
Long-term accrued restructuring costs 3,204 3,037
Convertible debentures, including contingent
interest derivative 574,378 568,712
Other long-term liabilities 161,690 84,543
----------- -----------
Total long-term liabilities 973,811 871,573
----------- -----------
Total liabilities 1,871,480 1,848,451
----------- -----------
Commitments and contingencies
Stockholders' equity:
VeriSign, Inc. and subsidiaries 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: 183,299,463
excluding 124,434,684 held in treasury, at
December 31, 2009; and 191,547,795 excluding
112,717,587 held in treasury, at
December 31, 2008 308 304
Additional paid-in capital 21,736,209 21,891,786
Accumulated deficit (21,194,435) (21,439,988)
Accumulated other comprehensive income 7,659 17,111
----------- -----------
Total VeriSign, Inc. and subsidiaries
stockholders' equity 549,741 469,213
Noncontrolling interest in subsidiary 48,923 49,208
----------- -----------
Total stockholders' equity 598,664 518,421
----------- -----------
Total liabilities and stockholders' equity $ 2,470,144 $ 2,366,872
=========== ===========
(1) As adjusted balances were derived from the audited consolidated
financial statements of the Company included in its fiscal 2008 Annual
Report on Form 10-K, adjusted for the following: Retroactive adoption
of FASB Staff Position ("FSP") No. Accounting Principles Board ("APB")
14-1 ("FSP APB 14-1"), "Accounting for Convertible Debt Instruments
That May be Settled in Cash upon Conversion (Including Partial Cash
Settlement)," codified into FASB Accounting Standards Codification
("ASC") Subtopic 470-20, Debt with Conversion and Other Options,
("ASC 470-20"), and Statement of Financial Accounting Standard ("SFAS")
No. 160 ("SFAS 160"), "Noncontrolling Interests in Consolidated
Financial Statements, an amendment of Accounting Research Bulletin
No. 51," codified into FASB ASC Topic 810, Consolidation, ("ASC 810"),
effective January 1, 2009.
VERISIGN, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
------------------------ ------------------------
2009 2008 2009 2008
----------- ----------- ----------- -----------
As Adjusted As Adjusted
(1) (1)
Revenues $ 262,660 $ 248,762 $ 1,030,619 $ 964,748
----------- ----------- ----------- -----------
Costs and expenses:
Cost of revenues 57,553 60,927 233,040 231,406
Sales and marketing 48,190 38,205 177,029 172,206
Research and
development 24,660 21,606 96,416 88,948
General and
administrative 46,661 53,319 181,992 201,016
Restructuring,
impairments and
other charges 244 77,256 16,216 196,419
Amortization of other
intangible assets 2,805 2,540 12,199 11,155
----------- ----------- ----------- -----------
Total costs and
expenses 180,113 253,853 716,892 901,150
----------- ----------- ----------- -----------
Operating income (loss) 82,547 (5,091) 313,727 63,598
Other (loss) income,
net (8,980) 71,337 (32,437) 48,809
----------- ----------- ----------- -----------
Income from continuing
operations before
income taxes and loss
from unconsolidated
entities 73,567 66,246 281,290 112,407
----------- ----------- ----------- -----------
Income tax expense (9,972) (30,208) (80,105) (39,197)
Loss from
unconsolidated
entities, net of tax - (769) - (3,868)
----------- ----------- ----------- -----------
Income from continuing
operations, net of tax 63,595 35,269 201,185 69,342
Income (loss) from
discontinued
operations, net of tax 29,758 (149,910) 48,054 (459,602)
----------- ----------- ----------- -----------
Net income (loss) 93,353 (114,641) 249,239 (390,260)
Less: Net (income) loss
attributable to
noncontrolling
interest in
subsidiary (1,305) 18,719 (3,686) 16,009
----------- ----------- ----------- -----------
Net income (loss)
attributable to
VeriSign, Inc. and
subsidiaries common
stockholders $ 92,048 $ (95,922) $ 245,553 $ (374,251)
=========== =========== =========== ===========
Basic income (loss) per
share attributable to
VeriSign, Inc. and
subsidiaries common
stockholders from:
Continuing operations $ 0.33 $ 0.28 $ 1.03 $ 0.43
Discontinued
operations 0.16 (0.78) 0.25 (2.33)
----------- ----------- ----------- -----------
Net income (loss) $ 0.49 $ (0.50) $ 1.28 $ (1.90)
=========== =========== =========== ===========
Diluted income (loss)
per share attributable
to VeriSign, Inc. and
subsidiaries common
stockholders from:
Continuing operations $ 0.33 $ 0.28 $ 1.03 $ 0.43
Discontinued
operations 0.15 (0.78) 0.25 (2.30)
----------- ----------- ----------- -----------
Net income (loss) $ 0.48 $ (0.50) $ 1.28 $ (1.87)
=========== =========== =========== ===========
Shares used to compute
net income (loss) per
share attributable to
VeriSign, Inc. and
subsidiaries common
stockholders:
Basic 189,724 192,969 191,821 197,201
=========== =========== =========== ===========
Diluted 190,617 193,587 192,575 200,602
=========== =========== =========== ===========
Amounts attributable to
VeriSign, Inc. and
subsidiaries common
stockholders:
Income from continuing
operations,
net of tax $ 62,290 $ 53,988 $ 197,499 $ 85,351
Income (loss) from
discontinued
operations,
net of tax 29,758 (149,910) 48,054 (459,602)
----------- ----------- ----------- -----------
Net income (loss)
attributable to
VeriSign, Inc. and
subsidiaries common
stockholders $ 92,048 $ (95,922) $ 245,553 $ (374,251)
=========== =========== =========== ===========
(1) As adjusted amounts were derived from the audited consolidated
financial statements of the Company included in its fiscal 2008 Annual
Report on Form 10-K, adjusted for the following:
a. Retroactive adoption of ASC 470-20 and ASC 810, effective
January 1, 2009.
b. Reclassification of the results of operations of the iDefense and
CPS businesses from discontinued operations to continuing
operations, and reclassification of the results of operations of the
Pre-pay business from continuing operations to discontinued
operations.
VERISIGN, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Year Ended December 31,
------------------------
2009 2008
----------- -----------
As Adjusted
(1)
Cash flows from operating activities:
Net income (loss) $ 249,239 $ (390,260)
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
(Gain) loss on divestiture of businesses
and estimated losses on assets held for
sale, net of tax (28,320) 349,957
Depreciation of property and equipment 74,067 102,915
Amortization of other intangible assets 12,199 25,663
Stock-based compensation 51,166 90,066
Impairment of goodwill - 123,412
Loss on sale and impairment of other
long-lived assets 12,481 92,182
Excess tax benefit associated with
stock-based compensation (25,880) (41,547)
Other, net (3,567) 5,274
Changes in operating assets and liabilities,
excluding the effects of acquisitions and
divestitures:
Accounts receivable 25,798 54,048
Prepaid expenses and other assets (47,418) (10,384)
Accounts payable and accrued liabilities 56,671 (40,800)
Accrued restructuring costs (22,126) 27,606
Deferred revenues 40,881 95,902
----------- -----------
Net cash provided by operating activities 395,191 484,034
----------- -----------
Cash flows from investing activities:
Proceeds from maturities and sales of
investments 129,479 99,635
Reclassification of cash equivalents to other
current assets - (248,541)
Purchases of property and equipment (116,876) (120,990)
Proceeds from sale of property and equipment 6,064 48,843
Proceeds received from divestiture of
businesses, net of cash contributed 469,380 274,295
Investments in unconsolidated entities - (15,679)
Cash received from trust, previously restricted - 45,000
Other investing activities (3,592) (5,799)
----------- -----------
Net cash provided by investing activities 484,455 76,764
----------- -----------
Cash flows from financing activities:
Proceeds from issuance of common stock from
option exercises and employee stock purchase
plans 36,204 122,427
Repurchases of common stock (260,571) (1,327,378)
Proceeds received from borrowings 3,205 200,000
Repayment of short-term debt (1,134) (200,000)
Excess tax benefit associated with stock-based
compensation 25,880 41,547
Other financing activities (1,578) (623)
----------- -----------
Net cash (used in) provided by financing
activities (197,994) (1,164,027)
----------- -----------
Effect of exchange rate changes on cash and cash
equivalents 6,446 15,575
----------- -----------
Net increase (decrease) in cash and cash
equivalents 688,098 (587,654)
Cash and cash equivalents at beginning of year 789,068 1,376,722
----------- -----------
Cash and cash equivalents at end of year $ 1,477,166 $ 789,068
=========== ===========
Supplemental cash flow disclosures:
Cash paid for interest, net of capitalized
interest $ 39,256 $ 35,677
=========== ===========
Cash paid for income taxes, net of refunds
received $ 21,881 $ 14,712
=========== ===========
Receivable from purchasers of divested
businesses $ 15,780 $ 13,822
=========== ===========
(1) As adjusted amounts were derived from the audited consolidated
financial statements of the Company included in its fiscal 2008 Annual
Report on Form 10-K, adjusted for the retroactive adoption of
ASC 470-20 and ASC 810, effective January 1, 2009.
VERISIGN, INC. AND SUBSIDIARIES
STATEMENTS OF OPERATIONS RECONCILIATION
(In thousands, except per share data)
(Unaudited)
Three Months Ended Year Ended
December 31, 2009 December 31, 2009
------------------------ -------------------------
Net Income Net Income
(loss) (loss)
attributable attributable
Operating to VeriSign, to VeriSign,
Income Inc. and Operating Inc. and
(loss) Subsidiaries Income Subsidiaries
--------- ------------- ---------- -------------
GAAP as reported $ 82,547 $ 92,048 $ 313,727 $ 245,553
Discontinued
operations (29,758) (48,054)
Non-core businesses
in continuing
operations (1) (1,169) (2,364) 948 (2,057)
Adjustments:
Stock-based
compensation 10,136 10,136 42,740 42,740
Amortization of
other intangible
assets 2,805 2,805 12,199 12,199
Impairment of other
intangible asset - - 9,684 9,684
Restructuring costs 1,850 1,850 7,249 7,249
Non-cash interest
expense 1,718 6,726
Tax adjustment (2) (17,097) (27,263)
--------- ------------- ---------- -------------
Non-GAAP as adjusted $ 96,169 $ 59,338 $ 386,547 $ 246,777
========= ============= ========== =============
Diluted shares 190,617 192,575
Per diluted share,
non-GAAP as adjusted $ 0.31 $ 1.28
============= =============
(1) As of December 31, 2009, the Company's business consists of the
following reportable segments: (a) 3IS and (b) Other Services. 3IS consists
of core operations of Naming Services and Authentication Services.
Authentication Services is comprised of Business Authentication Services
and User Authentication Services. Other Services consists of non-core
businesses in continuing operations.
(2) Non-GAAP tax is calculated as 30% of income from continuing operations,
excluding noncontrolling interest in subsidiary, which is presented
net of tax on the Statement of Operations.
(3) As adjusted amount was derived from the audited consolidated financial
statements of the Company included in its fiscal 2008 Annual Report on
Form 10-K, adjusted for reclassification of the results of operations
of the iDefense business from discontinued operations to 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 and annual 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 businesses 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.
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 Year ended
------------------------------------------------- -----------
December September December December
31, 30, June 30, March 31, 31, 31,
2009 2009 2009 2009 2008 2009
--------- --------- --------- --------- --------- -----------
As
Adjusted (3)
Revenues from
core
operations
(1) $ 261,643 $ 256,908 $ 255,248 $ 252,212 $ 248,123 $ 1,026,011
========= ========= ========= ========= ========= ===========
VERISIGN, INC. AND SUBSIDIARIES
STATEMENTS OF OPERATIONS RECONCILIATION
(In thousands, except per share data)
(Unaudited)
Three Months Ended Year Ended
December 31, 2008 December 31, 2008
------------------------ -------------------------
Net Income Net Income
(loss) (loss)
attributable attributable
Operating to VeriSign, to VeriSign,
Income Inc. and Operating Inc. and
(loss) Subsidiaries Income Subsidiaries
---------- ------------ ----------- ------------
GAAP, as adjusted (1) $ (5,091) $ (95,922) $ 63,598 $ (374,251)
Discontinued
operations, as
adjusted (2) 149,910 459,602
Non-core businesses
in continuing
operations, as
adjusted (3) (5,366) (83,547) 11,966 (60,835)
Adjustments:
Stock-based
compensation 9,759 9,759 48,978 48,978
Amortization of
other intangible
assets 2,540 2,540 10,216 10,216
Impairments of
goodwill and other
intangible assets 77,619 58,610 77,619 58,610
Restructuring costs 4,183 4,183 105,226 105,226
Non-cash interest
expense 1,609 5,404
Tax adjustment (4) 7,217 (52,175)
---------- ------------ ----------- ------------
Non-GAAP, as
adjusted $ 83,644 $ 54,359 $ 317,603 $ 200,775
========== ============ =========== ============
Diluted shares 193,587 200,602
Per diluted share,
non-GAAP, as adjusted $ 0.28 $ 1.00
============ ============
(1) As adjusted amounts were derived from the audited consolidated
financial statements of the Company included in its fiscal 2008 Annual
Report on Form 10-K, adjusted for the following:
(a) Retroactive adoption of ASC 470-20 and ASC 810, effective
January 1, 2009.
(b) Reclassification of the results of operations of the iDefense and CPS
businesses from discontinued operations to continuing operations, and
reclassification of the results of operations of the Pre-pay business
from continuing operations to discontinued operations.
(2) As adjusted amounts were derived from the audited consolidated
financial statements of the Company included in its fiscal 2008
Annual Report on Form 10-K, adjusted for reclassification of the
results of operations of the iDefense and CPS businesses from
discontinued operations to continuing operations, and
reclassification of the results of operations of the Pre-pay
business from continuing operations to discontinued operations.
(3) As of December 31, 2008, the Company's business consists of the
following reportable segments: (a) 3IS and (b) Other Services. 3IS
consists of core operations of Naming Services and Authentication
Services. Authentication Services is comprised of Business
Authentication Services and User Authentication Services. Other
Services consists of non-core businesses in continuing operations.
(4) Non-GAAP tax is calculated as 30% of income from continuing operations,
excluding noncontrolling interest in subsidiary, which is presented net
of tax on the Statement of Operations.
(5) As adjusted amounts were derived from the audited consolidated
financial statements of the Company included in its fiscal 2008
Annual Report on Form 10-K, adjusted for the reclassification of the
results of operations of the iDefense business from discontinued
operations to 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 and annual 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 businesses 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 herein have been conformed to
exclude the foregoing items under GAAP. Prior disclosures of non-GAAP
figures may not exclude these 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
Year
Three months ended ended
------------------------------------------------- ---------
December September December December
31, 30, June 30, March 31, 31, 31,
2008 2008 2008 2008 2007 2008
--------- --------- --------- --------- --------- ---------
As As As As As As
Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted
(5) (5) (5) (5) (5) (5)
Revenues from
core
operations (3) $ 248,123 $ 241,322 $ 234,448 $ 223,846 $ 213,555 $ 947,739
========= ========= ========= ========= ========= =========
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
Copyright 2010 Marketwire, Inc., All rights reserved.
News Provided by COMTEX