VeriSign Inc. (VRSN, Financial) filed Quarterly Report for the period ended 2009-03-31.
VeriSign is one of the leading providers of trusted infrastructure services to website owners enterprises electronic commerce service providers and individuals. The company's domain name registration digital certificate global registry and payment services provide the critical web identity authentication and transaction infrastructure that online businesses need to establish their web identities and to conduct secure electronic commerce or e-commerce and communications. VeriSign Inc. has a market cap of $4.67 billion; its shares were traded at around $24.26 with a P/E ratio of 29.1 and P/S ratio of 4.9. VeriSign Inc. had an annual average earning growth of 2% over the past 5 years.
Our Naming Services revenues increased $21.1 million during the three months ended March 31, 2009, as compared to the same period last year, primarily due to a 9% year-over-year increase in the number of active domain names ending in .com and .net and increases in our .com and .net registry fees in October 2008 of 7% and 10%, respectively, to $6.86 and $4.23, respectively as per our agreements with ICANN.
Revenues from the United States increased $11.1 million primarily due to increase in revenues from our Naming Services and Authentication Services. Revenues from the EMEA region increased $4.0 million primarily due to increase in revenues from our Naming Services. Revenues from the APAC region increased $3.8 million primarily due to increase in revenues from our Authentication Services. Revenues from Other regions increased $0.8 million primarily due to increase in revenues from our Naming Services and Authentication Services.
Cost of revenues increased $0.8 million primarily due to increases in registry fees paid to ICANN to maintain domain name registrations and outside consulting costs associated with our Naming Services and telecommunication expenses, partially offset by a decrease in salary and employee benefits expenses. Registry fees paid to ICANN increased $1.4 million due to an increase in the number of .com and .net domain names registered coupled with an increase in the cost of registry fees effected in the latter half of fiscal 2008 per the ICANN agreement. Outside consulting costs associated with our Naming Services increased $1.4 million primarily resulting from an increase in revenues from our Naming Services. Telecommunication expenses increased $1.7 million primarily due to increased spending on capacity for global constellation sites that support our .com and .net registries and an increase in expenses to support our new data centers that became operational in the second half of 2008. Salary and employee benefits expenses, which include stock-based compensation expenses, decreased $3.4 million primarily due to a reduction in average headcount resulting from the 2008 restructuring plan.
Read the The complete ReportVRSN is in the portfolios of Andreas Halvorsen of Viking Global Investors LP, Andreas Halvorsen of Viking Global Investors LP, Richard Aster Jr of Meridian Fund, Richard Aster Jr of Meridian Fund, PRIMECAP Management.
VeriSign is one of the leading providers of trusted infrastructure services to website owners enterprises electronic commerce service providers and individuals. The company's domain name registration digital certificate global registry and payment services provide the critical web identity authentication and transaction infrastructure that online businesses need to establish their web identities and to conduct secure electronic commerce or e-commerce and communications. VeriSign Inc. has a market cap of $4.67 billion; its shares were traded at around $24.26 with a P/E ratio of 29.1 and P/S ratio of 4.9. VeriSign Inc. had an annual average earning growth of 2% over the past 5 years.
Highlight of Business Operations:
On March 2, 2009, we entered into a binding agreement to sell our Communications Services business to TNS for $230.0 million. On May 1, 2009, the divestiture transaction was completed for cash proceeds of $226.2 million, after certain initial adjustments to reflect the parties current estimate of working capital associated with the Communications Services business as of the closing date. The divestiture transaction will be subject to a final adjustment to reflect the actual working capital balances as of the closing date.Our Naming Services revenues increased $21.1 million during the three months ended March 31, 2009, as compared to the same period last year, primarily due to a 9% year-over-year increase in the number of active domain names ending in .com and .net and increases in our .com and .net registry fees in October 2008 of 7% and 10%, respectively, to $6.86 and $4.23, respectively as per our agreements with ICANN.
Revenues from the United States increased $11.1 million primarily due to increase in revenues from our Naming Services and Authentication Services. Revenues from the EMEA region increased $4.0 million primarily due to increase in revenues from our Naming Services. Revenues from the APAC region increased $3.8 million primarily due to increase in revenues from our Authentication Services. Revenues from Other regions increased $0.8 million primarily due to increase in revenues from our Naming Services and Authentication Services.
Cost of revenues increased $0.8 million primarily due to increases in registry fees paid to ICANN to maintain domain name registrations and outside consulting costs associated with our Naming Services and telecommunication expenses, partially offset by a decrease in salary and employee benefits expenses. Registry fees paid to ICANN increased $1.4 million due to an increase in the number of .com and .net domain names registered coupled with an increase in the cost of registry fees effected in the latter half of fiscal 2008 per the ICANN agreement. Outside consulting costs associated with our Naming Services increased $1.4 million primarily resulting from an increase in revenues from our Naming Services. Telecommunication expenses increased $1.7 million primarily due to increased spending on capacity for global constellation sites that support our .com and .net registries and an increase in expenses to support our new data centers that became operational in the second half of 2008. Salary and employee benefits expenses, which include stock-based compensation expenses, decreased $3.4 million primarily due to a reduction in average headcount resulting from the 2008 restructuring plan.
Read the The complete ReportVRSN is in the portfolios of Andreas Halvorsen of Viking Global Investors LP, Andreas Halvorsen of Viking Global Investors LP, Richard Aster Jr of Meridian Fund, Richard Aster Jr of Meridian Fund, PRIMECAP Management.
