VeriSign slips to loss in Q3 on charges - update

Thu. November 06, 2008; Posted: 06:50 PM

(RTTNews) - VeriSign Inc. (VRSN | Quote | Chart | News | PowerRating), which provides Internet infrastructure services, Thursday reported a net loss for the third quarter, hurt by one-time impairment charges and restructuring costs.

The Mount View, California-based company posted a GAAP net loss of $200 million or $1.02 per share, compared to net income of $14.9 million or $0.06 per share in the prior year quarter.

The result for the latest quarter included a non-cash impairment charge of $237 million for estimated losses on certain assets held for sale, and restructuring charges of $13 million. The result also included a writedown of $0.03 per share related to investments affected by Lehman Brothers' bankruptcy filing.

Excluding items, non-GAAP net income fell to $48 million or $0.25 per share for the third quarter of 2008.

On average, 19 analysts polled by First Call/Thomson Financial expected the company to earn $0.26 per share for the third quarter. Analysts' estimate typically excludes special items.

The company's revenues for the third quarter increased to $246.05 million from $215.74 million in the same quarter of last year. Nineteen analysts had a consensus revenue estimate of $238.98 million for the third quarter.

VeriSign said its segment revenue for Internet Infrastructure and Identity Services grew 18% to $240 million from the prior year quarter. Revenue from discontinued operations was $143 million, while revenue from non-core businesses was $6 million for the third quarter of 2008.

Total costs and expenses climbed to $178.2 million from $203.9 million in the comparable 2007 period.

For the nine-month period of 2008, VeriSign reported a net loss of $274.2 million or $1.35 per share, compared to net income of $71.9 million or $0.29 per share in the previous year period.

On non-GAAP basis, adjusted net income was $141.9 million or $0.70 per share for the nine-month period of 2008.

Revenues for the year-to-date period increased to $724.99 million from $636.46 million in the preceding year period.

VeriSign stock closed Thursday's regular trading session at $19.55, down $1.45 or 6.90% on volume of 4.74 million shares. The stock has been moving in a range of $18.34 - $42.50 for the past 52 weeks, with a three-month average volume of about 4.82 million shares.

For full details on Verisign Inc (VRSN) click here. Verisign Inc (VRSN) has Short Term PowerRatings of 8. Details on Verisign Inc (VRSN) Short Term PowerRatings is available at This Link.

More News: Market Updates | Stock Alerts | All Trading News | Stock Index

Archives

Feedback

Email Article Link

Close X

RELATED SITES

Please call 1-213-955-5858 ext. 1

Tax Relief Bank Levy Wage Garnishment

Disclaimer:

The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.

It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

The Connors Group, Inc.
15260 Ventura Blvd., Ste. 2200
Sherman Oaks, CA 91403

All analyst commentary provided on TradingMarkets.com is provided for educational purposes only. The analysts and employees or affiliates of TradingMarkets.com may hold positions in the stocks or industries discussed here. This information is NOT a recommendation or solicitation to buy or sell any securities. Your use of this and all information contained on TradingMarkets.com is governed by the Terms and Conditions of Use. Please click the link to view those terms. Follow this link to read our Editorial Policy.