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VeriSign Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: October 25, 2012 04:34PM

VeriSign Inc. (VRSN) filed Quarterly Report for the period ended 2012-09-30. Verisign, Inc. has a market cap of $7.41 billion; its shares were traded at around $46.6 with a P/E ratio of 30.4 and P/S ratio of 9.6. Verisign, Inc. had an annual average earning growth of 9.5% over the past 10 years.



Highlight of Business Operations:

We recorded revenues of $223.5 million and $643.4 million during the three and nine months ended September 30, 2012, respectively. This represents an increase of 13% in both the three and nine months ended September 30, 2012, as compared to the same periods in 2011. The increase was primarily due to a 7% year-over-year increase in active domain names ending in .com and .net and increases in our .com and .net registry fees in July 2010 and January 2012.

We recorded operating income of $116.1 million and $322.0 million during the three and nine months ended September 30, 2012, respectively, an increase of 30% and 36%, respectively, as compared to the same periods last year. The increase was primarily due to an increase in our revenues as well as a reduction in restructuring expenses. General and administrative expenses decreased in the nine months ended September 30, 2012 as we realize the effect of post-divestiture cost savings.

We generated cash flows from operating activities of $366.9 million during the nine months ended September 30, 2012, an increase of 73% as compared to the same period last year. The increase was primarily due to the payment of $100.0 million of contingent interest to the holders of our Convertible Debentures during 2011 and an increase in cash received from customers resulting from revenue growth in 2012, partially offset by an increase in income taxes paid.

Our revenues increased by $26.6 million and $75.1 million during the three and nine months ended September 30, 2012, as compared to the same periods last year, primarily due to a 7% year-over-year increase in the number of domain names ending in .com and .net and increases in our .com and .net registry fees in July 2010 and January 2012 as per our agreements with ICANN.

ICANN for gTLD applications. Salary and employee benefits expenses increased by $4.8 million due to an increase in the average headcount related to the expansion of the international marketing team for our Registry Services business and growth of our NIA sales team. Contractor and professional services expenses decreased by $2.3 million due to costs related to the new gTLD program and the promotion of other Registry products during the nine months ended September 30, 2011. During the nine months ended September 30, 2012, we incurred fees of $2.6 million related to applications for new gTLDs.

Read the The complete Report



Stocks Discussed: VRSN,
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