VeriSign Posts In-line Revenue, Low-end Guidance

VeriSign Inc., the main administrator of the internet web-address database, said its Q1 revenue of $379 million was little changed (+1.6%) and in-line with analyst estimates of $375 million. VeriSign did not publish earnings numbers for a third-straight quarter due to a pending restatement because of its options postdating review. It said Q2 revenue will be $365-370 million, and profit will be $0.25/share. Analysts had been calling for $371 million and $0.25/share. The company will be raising the fees for registering .com and .net names for the first time since 1999 in October. In November 2006 the U.S. government extended VeriSign's contract to administer .com websites until 2012; the terms allow it to raise prices by 7% in as many as four of the next six years. In its release, the company said, "With our unique infrastructure that enables and protects an increasing amount of the world’s networked interactions, we are helping our customers more quickly and economically deliver new services that improve customer loyalty, business productivity and operational compliance." Shares dropped 3.6% in after-hours trading to $26.05.

Sources: Press release, MarketWatch, Bloomberg
Commentary: VeriSign Fortifying Its Network, Aiming At More Consulting • Domain Names: Land Grab of the 21st Century • VeriSign Maintains Hold Over .Com Domains; Stock Jumps
Stocks/ETFs to watch: VeriSign Inc. (VRSN). Competitors: Entrust Inc. (ENTU). ETFs: HOLDRS Internet Infrastructure (IIH)
Conference call transcript: VeriSign Maintains Hold Over .Com Domains; Stock Jumps

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