According to the latest Domain Name Industry Brief published by
), approximately five million names were added to the internet in
the third quarter of 2011 bringing the total number of registered
domain names to nearly 220 million on a worldwide basis.
VeriSign Inc. provides essential Internet infrastructure
services to companies, service providers and website owners. The
company offers a broad platform of products and services that
enables Internet users, website owners and operators of digital
VeriSign's registry, security and communications services are
essential for the smooth functioning of the online world. The
company exclusively registers domain names within the .com, .net
and .name generic top-level domains (gTLDs) under agreements with
the Internet Corporation for Assigned Names and Numbers (ICANN) and
the U.S. Department of Commerce (DOC).
The addition of 4.9 million domain names represents a growth of
2.3% in the second quarter of 2011 and marks the third straight
with a growth of more than 2%. In the first quarter, internet
additions were 4.5 million domain names, an increase of 2.2% and
5.2 million domain names in the second quarter, an increase of
Meanwhile, new .com and .net registrations totalled 7.9 million
during the quarter, up 5.9% year over year. The .com and .net TLDs
experienced reached a combined total of 112 million names.
ICANN recently renewed Verisign's contract to serve as the
authoritative registry operator for the .net registry for another
six years till 2017. Moreover, ICANN recently announced its plan to
increase the number of generic top-level domains.
VeriSign views the introduction of new gTLDs as an adjacent
growth opportunity. This should positively impact results in the
As of January 15, 2012, the registry fee for .com domain names
will increase from $7.34 to $7.85, and the registry fee for .net
domain names will increase from $4.65 to $5.11. The fee increases
will have no direct impact to 2011 revenue since the increases are
not effective until January 15, 2012 but should positively impact
revenues in 2012.
VeriSign has considerably streamlined its business to focus on
providing, reliable and secure Internet infrastructure services.
The disposal of non-core businesses has boosted margins while the
recently announced buyback of shares will positively boost the
We continue to maintain an Outperform recommendation on
VeriSign. Our recommendation is supported by Zacks #1 Rank, which
translates into a short-term rating of Strong Buy.
VERISIGN INC (
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