VeriSign, Inc.
Jan 27, 2011
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Verisign Reports 10% Year-Over-Year Revenue Growth in 2010

DULLES, VA -- (MARKET WIRE) -- 01/27/11 -- VeriSign, Inc. (NASDAQ: VRSN), the trusted provider of Internet infrastructure services for the networked world, today reported financial results for the fourth quarter of 2010 and year ended December 31, 2010.

Fourth Quarter GAAP Financial Results

VeriSign, Inc. and subsidiaries ("Verisign") reported revenue of $179 million for the fourth quarter of 2010, up 4% from the prior quarter and up 13% from the same quarter in 2009. Verisign reported net loss attributable to Verisign stockholders of $(41) million and net loss per share attributable to Verisign stockholders of $(0.23) on a diluted basis for the fourth quarter of 2010, reflecting a $109 million payment of contingent interest to holders of the 3.25% Junior Subordinated Convertible Debentures due 2037 ("Convertible Debentures") in connection with a special dividend in December. This compared to net income attributable to Verisign stockholders of $92 million and earnings per share attributable to Verisign stockholders of $0.48 on a diluted basis in the same quarter in 2009. The operating margin was 37.7% for the fourth quarter of 2010 compared to 29.9% for the same quarter in 2009.

Because the company has not fully completed the tax provision calculation process, tax provisions for both the fourth quarter and full year 2010 are still preliminary and therefore GAAP net income/loss and GAAP earnings/loss per share for these periods are also preliminary. Final tax provisions, GAAP net income/loss, and GAAP earnings/loss per share will be updated in the Annual Report on Form 10-K for the year ended December 31, 2010 to be filed with the SEC and may differ materially from the amounts reported above.

Fourth Quarter Non-GAAP Financial Results

Verisign reported net income attributable to Verisign stockholders of $54 million and earnings per share attributable to Verisign stockholders of $0.31 on a diluted basis for the fourth quarter of 2010, compared to net income attributable to Verisign stockholders of $33 million and earnings per share attributable to Verisign stockholders of $0.17 on a diluted basis in the same quarter in 2009. The operating margin was 44.3% for the fourth quarter of 2010 compared to 35.4% 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.

"We are pleased with our performance this quarter, capping a strong year of execution in which the business continued to benefit from favorable Internet trends," said Mark McLaughlin, president and chief executive officer of Verisign. "In 2011, we will continue to provide exceptional service to our customers and help them grow by providing services that address the reliability and availability demands of increased Internet usage and cloud computing."

2010 GAAP Financial Results

For the year ended December 31, 2010, Verisign reported revenue of $681 million, up 10% from $616 million in 2009. Verisign reported net income attributable to Verisign stockholders of $831 million and earnings per share attributable to Verisign stockholders of $4.64 on a diluted basis, reflecting a net gain of $726 million, net of tax of $254 million, on the sale of the Authentication Services business. This compared to net income attributable to Verisign stockholders of $246 million and earnings per share attributable to Verisign stockholders of $1.28 on a diluted basis in 2009. The operating margin for 2010 was 34.1% compared to 26.0% in 2009.

2010 Non-GAAP Financial Results

Verisign reported net income attributable to Verisign stockholders of $185 million and earnings per share attributable to Verisign stockholders of $1.03 on a diluted basis, compared to net income attributable to Verisign stockholders of $124 million and earnings per share attributable to Verisign stockholders of $0.64 on a diluted basis in 2009. The operating margin for 2010 was 41.8% compared to 33.3% in 2009. A table reconciling the GAAP to the non-GAAP results (which excludes items described below) is appended to this release.

"Our key long-term financial priorities have been growth and increased operating leverage, and we made substantial progress on both in 2010 due to our continued strategic focus, execution and operating discipline," said Brian Robins, chief financial officer of Verisign.

Financial Highlights


--  On December 10, Verisign announced a special cash dividend of $3.00

    per share of its common stock or $518 million that was paid on

    December 28, 2010 to shareholders of record at the close of business

    on December 20, 2010.  In addition, a contingent interest payment

    totaling $109 million was paid on December 28, 2010 to holders of

    record of Verisign's Convertible Debentures at the close of business

    on December 20, 2010.

--  During 2010, Verisign repurchased approximately 16 million shares for

    a cost of approximately $438 million.  This included the repurchase of

    0.4 million shares in the fourth quarter for $14 million to partially

    offset dilution.

--  Upon wind-down in the fourth quarter of the operations of the Content

    Portal Services ("CPS") business, and upon the sale of the

    Authentication Services business during the year, historical

    operations for both businesses were reclassified to discontinued

    operations for all periods presented.

--  Verisign ended the fourth quarter with Cash, Cash Equivalents,

    Marketable Securities and Restricted Cash of $2.063 billion, a

    decrease of $488 million from the prior quarter and an increase of

    $585 million from the same quarter in 2009.

--  Cash flow from operations on a consolidated basis was $47 million

    for the fourth quarter and $215 million for the full year.  Excess

    tax benefits of $132 million for the full year that are associated

    with stock-based compensation were classified as financing cash flows.

--  Deferred revenues from continuing operations on December 31, 2010

    totaled $663 million, an increase of $9 million from the prior quarter

    and $77 million from the same quarter in 2009.

--  Capital expenditures, on a consolidated basis, were $12 million in the

    fourth quarter and $81 million for the full year.  For the full year,

    approximately 25% of capital expenditures were related to the

    Authentication Services business prior to its sale.

Business and Corporate Highlights


--  Verisign Registry Services ended the quarter with approximately

    105.2 million active domain names in the adjusted zone for .com and

    .net, representing a 9% increase year-over-year.

--  In the fourth quarter, Verisign added 7.6 million new domain name

    registrations, representing a 4% increase year-over-year.

--  During the fourth quarter, Verisign deployed Domain Name System

    Security Extensions (DNSSEC) in the .net domain to provide origin

    authentication of DNS data, authenticated denial of existence, and

    data integrity.

--  Over the course of 2010, Verisign processed more than 22 trillion

    total queries through its infrastructure, compared to 18 trillion in

    2009.  Verisign experienced an average daily query load of 61 billion

    during the fourth quarter, compared to 66 billion in the prior

    quarter and 52 billion in the same quarter in 2009.

--  Verisign ended the fourth quarter of 2010 with approximately 1,050

    employees, compared to 1,100 employees at the end of the prior quarter.

Non-GAAP Items

Non-GAAP financial results exclude the following items that are included under GAAP: discontinued operations, stock-based compensation, amortization of other intangible assets, impairments of goodwill and other intangible assets, restructuring costs, contingent interest payment to holders of our Convertible Debentures, 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 operating income and net income attributable to Verisign stockholders 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 4:30 p.m. (EST) to review the fourth quarter and full year results. The call will be accessible by direct dial at (888) 676-VRSN (US) or (913) 312-0821 (international). A listen-only live web cast and accompanying slide presentation of the earnings conference call will also be available on the Investor Relations section of the Verisign website at www.verisigninc.com. A telephone replay of this call will remain available at (888) 203-1112 or (719) 457-0820 (passcode: 1564139) for one week after the conference call. 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 www.verisigninc.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 connect online with confidence. Additional news and information about the company is available at www.verisigninc.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, pricing pressure from competing services offered at prices below our prices and changes in marketing practices including those of third-party registrars; the sluggish economic recovery; challenges to ongoing privatization of Internet administration; the outcome of legal or other challenges resulting from our activities or the activities of registrars or registrants; new or existing governmental laws and regulations; changes in customer behavior, Internet platforms and web-browsing patterns; 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; the uncertainty of the expense and duration of transition services and requests for indemnification relating to completed divestitures; and the uncertainty of whether Project Apollo will achieve its stated objectives. 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.

                       CONSOLIDATED BALANCE SHEETS

              (In thousands, except share and per share data)

                                (Unaudited)



                                                December 31,  December 31,

                                                    2010          2009

                                                ------------  ------------

                      ASSETS

Current assets:

  Cash and cash equivalents                     $  1,559,628  $  1,477,166

  Marketable securities                              501,238           185

  Accounts receivable, net                            14,874        63,133

  Prepaid expenses and other current assets          102,217       168,574

                                                ------------  ------------

    Total current assets                           2,177,957     1,709,058

                                                ------------  ------------

Property and equipment, net                          190,319       403,821

Goodwill                                              52,527       289,980

Other intangible assets, net                           2,619        22,420

Other assets                                          20,584        44,865

                                                ------------  ------------

    Total long-term assets                           266,049       761,086

                                                ------------  ------------

    Total assets                                $  2,444,006  $  2,470,144

                                                ============  ============



     LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

  Accounts payable and accrued liabilities      $    195,235  $    243,967

  Deferred revenues                                  457,478       642,507

                                                ------------  ------------

    Total current liabilities                        652,713       886,474

                                                ------------  ------------

Long-term deferred revenues                          205,560       245,734

Convertible debentures, including contingent

 interest derivative                                 581,626       574,378

Long-term deferred tax liabilities                   309,696       144,777

Other long-term liabilities                           17,981        20,117

                                                ------------  ------------

    Total long-term liabilities                    1,114,863       985,006

                                                ------------  ------------

    Total liabilities                              1,767,576     1,871,480

                                                ------------  ------------

Commitments and contingencies



Stockholders' equity:

  Verisign 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: 172,736,281

     excluding 140,576,600 held in treasury, at

     December 31, 2010; and 183,299,463,

     excluding 124,434,684 held in treasury,

     at December 31, 2009                                313           308

    Additional paid-in capital                    21,040,919    21,736,209

    Accumulated deficit                          (20,363,468)  (21,194,435)

    Accumulated other comprehensive (loss)

     income                                           (1,334)        7,659

                                                ------------  ------------

    Total Verisign stockholders' equity              676,430       549,741

  Noncontrolling interest in subsidiary                    -        48,923

                                                ------------  ------------

    Total stockholders' equity                       676,430       598,664

                                                ------------  ------------

    Total liabilities and stockholders' equity  $  2,444,006  $  2,470,144

                                                ============  ============













                              VERISIGN, INC.

                  CONSOLIDATED STATEMENTS OF OPERATIONS

                  (In thousands, except per share data)

                                (Unaudited)



                                 Three Months Ended        Year Ended

                                    December 31,          December 31,

                                --------------------  --------------------

                                  2010       2009       2010       2009

                                ---------  ---------  ---------  ---------



Revenues                        $ 178,829  $ 158,741  $ 680,578  $ 615,947

                                ---------  ---------  ---------  ---------



Costs and expenses:

  Cost of revenues                 38,265     40,063    156,676    166,705

  Sales and marketing              20,529     21,293     83,390     75,348

  Research and development         13,181     12,610     53,664     52,364

  General and administrative       36,549     35,707    137,704    146,531

  Restructuring, impairment and

   other charges, net               2,819      1,599     16,861     15,041

                                ---------  ---------  ---------  ---------

    Total costs and expenses      111,343    111,272    448,295    455,989

                                ---------  ---------  ---------  ---------

Operating income                   67,486     47,469    232,283    159,958

  Other loss, net                (114,144)   (11,094)  (136,929)   (35,406)

                                ---------  ---------  ---------  ---------

(Loss) income from continuing

 operations before income taxes   (46,658)    36,375     95,354    124,552

Income tax benefit (expense)       14,991     (5,007)   (25,322)   (32,935)

                                ---------  ---------  ---------  ---------

(Loss) income from continuing

 operations, net of tax           (31,667)    31,368     70,032     91,617

(Loss) income from discontinued

 operations, net of tax            (8,838)    61,985    763,822    157,622

                                ---------  ---------  ---------  ---------

Net (loss) income                 (40,505)    93,353    833,854    249,239

Less: Income from discontinued

 operations, net of tax,

 attributable to noncontrolling

 interest in subsidiary                 -     (1,305)    (2,887)    (3,686)

                                ---------  ---------  ---------  ---------

  Net (loss) income

   attributable to Verisign

   stockholders                 $ (40,505) $  92,048  $ 830,967  $ 245,553

                                =========  =========  =========  =========



  Basic (loss) income per share

   attributable to Verisign

   stockholders from:



    Continuing operations       $   (0.18) $    0.17  $    0.39  $    0.48

    Discontinued operations         (0.05)      0.32       4.29       0.80

                                ---------  ---------  ---------  ---------

    Net (loss) income           $   (0.23) $    0.49  $    4.68  $    1.28

                                =========  =========  =========  =========



Diluted (loss) income per share

 attributable to Verisign

 stockholders from:



   Continuing operations        $   (0.18) $    0.16  $    0.39  $    0.48

   Discontinued operations          (0.05)      0.32       4.25       0.80

                                ---------  ---------  ---------  ---------

   Net (loss) income            $   (0.23) $    0.48  $    4.64  $    1.28

                                =========  =========  =========  =========



Shares used to compute net

 income per share attributable

 to Verisign stockholders:



  Basic                           172,472    189,724    177,534    191,821

                                =========  =========  =========  =========

  Diluted                         172,472    190,617    178,965    192,575

                                =========  =========  =========  =========



Amounts attributable to

 Verisign stockholders:



  (Loss) Income from

   continuing operations,

   net of tax                   $ (31,667) $  31,368  $  70,032  $  91,617

  (Loss) income from

   discontinued

   operations, net of tax          (8,838)    60,680    760,935    153,936

                                ---------  ---------  ---------  ---------

  Net (loss) income

   attributable to Verisign

   stockholders                 $ (40,505) $  92,048  $ 830,967  $ 245,553

                                =========  =========  =========  =========











                              VERISIGN, INC.

              CONSOLIDATED STATEMENTS OF OPERATIONS (Continued)

                   (In thousands, except per share data)

                               (Unaudited)



The following table presents stock-based compensation:



                                  Three Months Ended       Year Ended

                                     December 31,          December 31,

                                --------------------- ---------------------

                                  2010       2009       2010       2009

                                ---------- ---------- ---------- ----------

                                              (In thousands)

Stock-based compensation:

     Cost of revenues           $    1,217 $      884 $    4,473 $    3,649

     Sales and marketing             1,454        918      4,419      3,250

     Research and development        1,178        759      4,989      3,145

     General and administrative      4,707      4,316     20,136     18,912

     Restructuring and other

      charges, net                   1,277         39      2,321        630

                                ---------- ---------- ---------- ----------

Stock-based compensation for

 continuing operations               9,833      6,916     36,338     29,586

Discontinued operations                144      4,845     15,840     21,580

                                ---------- ---------- ---------- ----------

Total stock-based compensation  $    9,977 $   11,761 $   52,178 $   51,166

                                ========== ========== ========== ==========











                            VERISIGN, INC.

                 CONSOLIDATED STATEMENTS OF CASH FLOWS

                            (In thousands)

                             (Unaudited)



                                                  Year Ended December 31,

                                                  ------------------------

                                                      2010         2009

                                                  -----------  -----------

Cash flows from operating activities:

  Net income                                      $   833,854  $   249,239

  Adjustments to reconcile net income to net cash

   provided by operating activities:

    Net gain on sale of discontinued operations,

     net of tax                                      (725,254)     (28,320)

    Depreciation of property and equipment             62,605       74,067

    Amortization of other intangible assets             5,050       12,199

    Stock-based compensation                           52,178       51,166

    Loss on sale and impairment of other

     long-lived assets                                      -       12,481

    Excess tax benefit associated with stock-based

     compensation                                    (131,926)     (25,880)

    Other, net                                          9,474       (3,567)

    Changes in operating assets and liabilities,

     excluding the effects of acquisitions and

     divestitures:

      Accounts receivable                              13,147       25,798

      Prepaid expenses and other assets               (19,105)     (47,418)

      Accounts payable and accrued liabilities         34,952       34,545

      Deferred revenues                                80,231       40,881

                                                  -----------  -----------

        Net cash provided by operating activities     215,206      395,191

                                                  -----------  -----------



Cash flows from investing activities:

  Proceeds received from divestiture of businesses,

   net of cash contributed and transaction costs    1,162,306      469,380

  Proceeds from maturities and sales of marketable

   securities and investments                         313,817      129,479

  Purchases of marketable securities and

   investments                                       (787,718)      (1,150)

  Purchases of property and equipment                 (80,527)    (116,876)

  Proceeds from sale of property and equipment              -        6,064

  Other investing activities                           (4,788)      (2,442)

                                                  -----------  -----------

        Net cash provided by investing activities     603,090      484,455

                                                  -----------  -----------



Cash flows from financing activities:

  Proceeds from issuance of common stock from

   option exercises and employee stock purchase

   plans                                               92,510       36,204

  Repurchases of common stock                        (449,749)    (260,571)

  Payment of dividends to stockholders               (518,217)           -

  Excess tax benefit associated with stock-based

   compensation                                       131,926       25,880

  Other financing activities                           (1,744)         493

                                                  -----------  -----------

        Net cash used in financing activities        (745,274)    (197,994)

                                                  -----------  -----------

Effect of exchange rate changes on cash and cash

 equivalents                                            9,440        6,446

                                                  -----------  -----------

Net increase in cash and cash equivalents              82,462      688,098

Cash and cash equivalents at beginning of period    1,477,166      789,068

                                                  -----------  -----------

Cash and cash equivalents at end of period        $ 1,559,628  $ 1,477,166

                                                  ===========  ===========



Supplemental cash flow disclosures:

  Cash paid for interest, net of capitalized

   interest                                       $   148,870  $    39,256

                                                  ===========  ===========

  Cash paid for income taxes, net of refunds

   received                                       $     8,502  $    21,881

                                                  ===========  ===========

  (Payable) receivable to/from purchasers of

   divested businesses                            $    (4,250) $    15,780

                                                  ===========  ===========











                              VERISIGN, INC.

                 STATEMENTS OF OPERATIONS RECONCILIATION

                  (In thousands, except per share data)

                               (Unaudited)





                            Three Months Ended       Three Months Ended

                             December 31, 2010        December 31, 2009

                          ------------------------ ------------------------



                                      Net Income               Net Income

                                     attributable             attributable

                          Operating  to Verisign   Operating  to Verisign

                            Income   stockholders    Income   stockholders

                          ---------- ------------  ---------- ------------



GAAP as reported          $   67,486 $    (40,505) $   47,469 $     92,048

  Discontinued operations                   8,838                  (60,680)

  Adjustments:

    Stock-based

     compensation              8,556        8,556       6,877        6,877

    Amortization of other

     intangible assets           324          324         319          319

    Restructuring costs        2,819        2,819       1,599        1,599

    Contingent interest

     payment to holders of

     Convertible Debentures               109,113                        -

    Non-cash interest

     expense                                2,294                    1,718

  Tax adjustment                          (37,926)                  (9,059)

                          ---------- ------------  ---------- ------------

Non-GAAP as adjusted      $   79,185 $     53,513  $   56,264 $     32,822

                          ========== ============  ========== ============



Diluted shares                            174,014                  190,617



Per diluted share,

 non-GAAP as adjusted                $       0.31             $       0.17

                                     ============             ============

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, stock-based compensation, amortization of other intangible assets, impairments of goodwill and other intangible assets, restructuring costs, contingent interest payment to holders of our Convertible Debentures, 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 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

            ---------------------------------------------------------------

            December 31, September 30,  June 30,    March 31,  December 31,

                2010         2010         2010         2010        2009

            ------------ ------------ ------------ ------------ -----------



Revenues    $    178,829 $    172,286 $    167,881 $    161,582 $   158,741

            ============ ============ ============ ============ ===========









                               VERISIGN, INC.

                   STATEMENTS OF OPERATIONS RECONCILIATION

                    (In thousands, except per share data)

                                 (Unaudited)



                                Year Ended               Year Ended

                             December 31, 2010        December 31, 2009

                          ------------------------ ------------------------

                                      Net Income               Net Income

                                     attributable             attributable

                          Operating  to Verisign   Operating  to Verisign

                            Income   stockholders    Income   stockholders

                          ---------- ------------  ---------- ------------



GAAP as reported          $  232,283 $    830,967  $  159,958 $    245,553

  Discontinued operations                (760,935)            $   (153,936)

  Adjustments:

    Stock-based

     compensation             34,017       34,017      28,956       28,956

    Amortization of other

     intangible assets         1,293        1,293       1,195        1,195

    Impairment of other

     intangible asset              -            -       9,684        9,684

    Restructuring costs       16,861       16,861       5,357        5,357

    Contingent interest

     payment to holders of

     Convertible

     Debentures                           109,113                        -

    Non-cash interest

     expense                                7,929                    6,726

  Tax adjustment                          (54,049)                 (20,006)

                          ---------- ------------  ---------- ------------

Non-GAAP as adjusted      $  284,454 $    185,196  $  205,150 $    123,529

                          ========== ============  ========== ============



Diluted shares                            178,965                  192,575



Per diluted share,

 non-GAAP as adjusted                $       1.03             $       0.64

                                     ============             ============

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, stock-based compensation, amortization of other intangible assets, impairments of goodwill and other intangible assets, restructuring costs, contingent interest payment to holders of our Convertible Debentures 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 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 Ended

                                                ---------------------------

                                                December 31,  December 31,

                                                    2010          2009

                                                ------------- -------------

Revenues                                        $     680,578 $     615,947

                                                ============= =============

Source: VeriSign, Inc.

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