Recently announced,
Verisign, Inc.
(
VRSN
) has decided to steer its focus toward Internet infrastructure
developments for worldwide online users targeting primarily the
emerging sectors.
The company hopes to go about its expansionary plan by investing
in a grant program for conducting thorough research on mainly the
infrastructural, security and accessibility aspects of the
Internet.
It even plans to motivate high quality research by awarding two
grants in July 2012, worth $200,000 each to the most competent
researchers who come up with convincing and exhaustive proposals
targeting the amelioration of Internet usage, especially in the
developing and emerging economies of the world.
This venture, however, is not the first for Verisign to boost
research growth. Previously, there was a similar Infrastructure
Grant Program implemented in 2010 when grants worth $300,000 were
awarded to university research scholars for extraordinary and
refined research project developments. The program concluded at the
Newseum in Washington, D.C. in October 2011.
Such continued efforts as these to promote research most
certainly are laudatory; as the company's endeavour depicts
Verisign's eminently constructive approach of constantly trying to
improve and innovate technological advancements.
Verisign recently reported revenues of $197 million in its 2011
third quarter financial results, increasing 14% year over year. Net
earnings came in at 35 cents per share which beat our Zacks
Consensus Estimate.
We currently await the company's December quarter financial
results of 2011 which are due on January 26, 2012. Verisign expects
a revenue growth of 13% to 14% year over year for full year 2011
with a gross margin projection of about 79%.
Verisign seems to be in quite a formidable position to battle
its competitors at present with its favorable quarterly results,
positive future guidance and development initiatives. However, it
would be wise to remain wary of big names in this sector such as
The Active Network Inc.
(
ACTV
),
Ellie Mae Inc.
(
ELLI
) and
QIHOO 360 Tech Co. Ltd.
(
QIHU
).
In the short run, we have a Zacks #1 Rank for the stock, which
translates into a short-term rating of Strong Buy. We currently
have a long-term Outperform rating for the company's stock.
ACTIVE NETWORK (
ACTV
): Free Stock Analysis Report
ELLIE MAE INC (
ELLI
): Free Stock Analysis Report
QIHOO 360 TECH (
QIHU
): Free Stock Analysis Report
VERISIGN INC (
VRSN
): Free Stock Analysis Report
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