VeriSign Swings To Profit On Core Strength
DOW JONES NEWSWIRES
VeriSign Inc. (VRSN) swung to a third-quarter profit as it benefited from
strength in its core businesses.
But shares fell 2.3% to $23.45 after-hours as revenue fell just short of
analysts' expectations. The stock, hovering just below its 52-week high from two
weeks ago, is up about one-quarter this year.
The company has been shedding its low-growth businesses to focus on Web
certificates and its Internet registry. However, the core Internet registry
business faces renewed antitrust concerns after a federal appeals court in June
reversed the dismissal of a suit filed by a nonprofit group of domain-name
stakeholders.
"As we enter the last quarter of 2009, and with our divestitures essentially
behind us, we are focused on growing VeriSign's core businesses," said President
and Chief Executive Mark McLaughlin.
VeriSign reported earnings of $53.6 million, or 28 cents a share, compared
with a loss of $201.1 million, or $1.03 a share, a year earlier, when the
company had a $242.6 million loss from discontinued operations. The latest
quarter had a net 5 cents in charges.
Revenue increased 4.9% to $258 million. The core businesses recorded 6%
growth.
Analysts polled by Thomson Reuters expected earnings, excluding items, of 32
cents on revenue of $259 million.
-By Jay Miller, Dow Jones Newswires; 212-416-2355; jay.miller@dowjones.com
(END) Dow Jones Newswires
11-05-091702ET
Copyright (c) 2009 Dow Jones & Company, Inc.
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