Skip to content
AnalystLens

VRSN · Verisign

50 filings

10-Q

VRSN 10-Q Quarterly Reports

Verisign - 50 quarterly reports

Filing record · 2016–202610-K1110-Q338-K94

VRSN filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 94 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Oct ’16Oct ’16
  2. FY2018 annual report10-K · Feb ’19Feb ’19
  3. Leadership change8-K · Jun ’21Jun ’21
  4. Leadership change8-K · Nov ’25Nov ’25
  1. 2026-Q3

    Verisign Quarterly Report for Q3 Ended Sep 30, 2026

    VeriSign, Inc. reported third-quarter 2026 revenues of $443.0 million, up from $419.1 million a year earlier, and operating income of $296.5 million versus $284.3 million. For the nine months ended September 30, 2026, revenues were $1,306.5 million and net income was $643.6 million, compared with $619.5 million in the prior-year period. The filing attributes the revenue growth primarily to a larger domain name base (182.5 million .com and .net registrations, up from 171.9 million a year earlier) and the .com price increases. Diluted EPS for the nine months was $7.06 versus $6.58. Cash flow and capital return activity were significant in the period. Net cash provided by operating activities was $772.3 million for the nine months, compared with $801.5 million a year earlier. The company repurchased $620.0 million of common stock and paid $220.8 million in dividends during the nine months. In July 2026, the Board authorized an additional $884.2 million for repurchases, bringing the total authorization to $1.50 billion, with $1.36 billion remaining as of September 30, 2026. A quarterly dividend of $0.81 per share was declared on October 19, 2026. Cash and marketable securities totaled $476.1 million, and the company had a stockholders' deficit of $2,284.7 million. The filing also notes the July 2026 delegation of the .web gTLD, which was reclassified to intangible assets of $145.2 million, and a putative class action filed on September 4, 2026 in the U.S. District Court for the Central District of California, against Verisign and ICANN, alleging antitrust violations related to .com pricing. The company cannot reasonably estimate a range of possible losses from this matter.

    Oct 22, 2026
  2. 2026-Q2

    Verisign Quarterly Report for Q2 Ended Jun 30, 2026

    VeriSign, Inc. reported higher second-quarter 2026 results, with revenues of $434.6 million versus $409.9 million a year earlier and operating income of $296.3 million versus $280.7 million. Net income rose to $216.5 million from $207.4 million, and diluted EPS was $2.38 versus $2.21. For the six months ended June 30, 2026, revenues were $863.5 million, operating income $589.9 million, and net income $431.0 million. The filing attributes revenue growth mainly to a larger domain name base and .com price increases. The .com and .net domain name base reached 179.1 million registrations, up 5.1% from June 30, 2025, and the company processed 12.7 million new .com and .net registrations in the quarter versus 10.4 million a year earlier. The balance sheet shows cash and cash equivalents of $840.9 million and marketable securities of $193.2 million at June 30, 2026, up from $307.9 million and $272.6 million at December 31, 2025. Total stockholders' deficit was $(2,254.1) million, and total liabilities were $4,056.9 million. In June 2026 the company issued $550.0 million of 5.10% senior notes due 2031 and, on July 20, 2026, used those proceeds and cash on hand to redeem its $550.0 million 4.75% notes due 2027. Operating cash flow was $504.0 million for the six months, compared with $493.8 million a year earlier. Capital returns continued. The company repurchased $196.8 million of stock in the second quarter and paid $147.8 million in dividends for the six months. On July 23, 2026 the board authorized an additional $884.2 million of repurchases, bringing total available authorization to up to $1.50 billion. A quarterly dividend of $0.81 per share was declared on July 20, 2026, payable August 27, 2026. The filing also notes that the .web TLD was delegated into the root zone on July 22, 2026, and that the .web dispute has been resolved.

    Jul 23, 2026
  3. 2026-Q1

    Verisign Quarterly Report for Q1 Ended Mar 31, 2026

    VeriSign, Inc. reported first-quarter 2026 revenues of $428.9 million, up from $402.3 million in the prior-year quarter, and operating income of $293.6 million versus $271.2 million. Net income rose to $214.5 million, or $2.34 per diluted share, compared with $199.3 million and $2.10 per diluted share a year earlier. The filing attributes the revenue increase to a larger domain name base as of March 31, 2026 and the .com and .net price increases. The .com and .net domain name base reached 176.1 million, with 11.5 million new registrations processed in the quarter compared with 10.1 million a year earlier. The final .com and .net renewal rate for the fourth quarter of 2025 was 75.0%, up from 74.0%. Operating cash flow was $272.4 million, down from $291.3 million, which management attributes mainly to timing of payments from large customers, higher employee and vendor payments, and higher income tax payments. Cash and marketable securities totaled $556.4 million at March 31, 2026, down from $580.5 million at December 31, 2025. Stockholders' deficit widened to $(2,213.4) million. During the quarter the company repurchased 0.9 million shares for $214.4 million and paid $74.2 million in dividends, and $862.8 million remained available under the repurchase program. On April 20, 2026, the Board declared a quarterly dividend of $0.81 per share, payable May 27, 2026. On April 23, 2026, the company announced that the annual registry-level wholesale fee for each new and renewal .com registration will rise from $10.26 to $10.97 effective November 1, 2026. Management states that current liquidity should be sufficient for working capital, capital expenditures, the quarterly dividend, and debt service for the next 12 months and beyond.

    Apr 23, 2026
  4. 2025-Q3

    Verisign Quarterly Report for Q3 Ended Sep 30, 2025

    VeriSign, Inc. reported third-quarter 2025 revenues of $419.1 million, up 7% from $390.6 million a year earlier, and nine-month revenues of $1,231.3 million, up 6% from $1,162.0 million. Operating income rose to $284.3 million for the quarter (from $269.3 million) and $836.2 million for the nine months (from $794.4 million). Net income was $212.8 million for the quarter and $619.5 million for the nine months, compared with $201.3 million and $594.2 million in the prior-year periods. Diluted EPS was $2.27 for the quarter and $6.58 for the nine months, versus $2.07 and $6.00 a year earlier. The filing attributes revenue growth primarily to .com and .net price increases and a larger domain name base, which stood at 171.9 million registrations, up 1.4% from September 30, 2024. Cash flow and capital returns were central to the period. Net cash from operating activities was $801.5 million for the nine months, versus $671.1 million a year earlier. The company repurchased 0.8 million shares for $215.0 million in the quarter and paid $144.1 million in dividends over the nine months after initiating a quarterly dividend in April 2025. The Board authorized a total repurchase program of up to $1.50 billion effective July 24, 2025, with $1.33 billion remaining at September 30, 2025, and declared a further $0.77 per share dividend on October 21, 2025. The balance sheet remains in a stockholders' deficit of $2,050.5 million, with total liabilities of $3,454.2 million against total assets of $1,403.7 million. Long-term senior notes rose to $1,787.6 million after the company issued $500.0 million of 5.25% notes due 2032 in March 2025 and used the proceeds, with cash on hand, to repay $500.0 million of notes maturing in April 2025. Management states that existing cash, marketable securities and operating cash flows should be sufficient for working capital, capital expenditures, quarterly dividends and debt service for at least the next 12 months.

    Oct 23, 2025
  5. 2025-Q2

    Verisign Quarterly Report for Q2 Ended Jun 30, 2025

    VeriSign, Inc. reported second-quarter 2025 revenues of $409.9 million, up from $387.1 million a year earlier, and six-month revenues of $812.2 million versus $771.4 million. Operating income rose to $280.7 million for the quarter and $551.9 million for the six months, and net income was $207.4 million for the quarter (diluted EPS $2.21) and $406.7 million for the six months (diluted EPS $4.31). Management attributed the revenue increase primarily to .com and .net price increases, partially offset by a slight decline in the domain name base, which ended the quarter at 170.5 million registrations. Cash flow and capital return remained central. Net cash provided by operating activities was $493.8 million for the six months, versus $417.7 million a year earlier. The company repurchased $408.5 million of common stock in the first half, paid a $0.77 per share dividend totaling $72.1 million, and on July 24, 2025 authorized an additional $913.1 million of repurchases, bringing total authorization to up to $1.50 billion. The balance sheet shows a total stockholders' deficit of $1,993.8 million, with senior notes of $1,786.9 million long-term. In March 2025 the company issued $500.0 million of 5.25% notes due 2032 and used the proceeds, with cash on hand, to repay $500.0 million of 2025 notes. The filing reports that a legal proceeding involving an Independent Review Process against ICANN continues, with Verisign granted participation in aspects of it, and that the company expects its existing resources to meet working capital, capital expenditure, dividend and debt service needs for the next 12 months and beyond. The company also noted it is evaluating the impact of the One Big Beautiful Bill Act, enacted July 4, 2025.

    Jul 24, 2025
  6. 2025-Q1

    Verisign Quarterly Report for Q1 Ended Mar 31, 2025

    VeriSign, Inc. reported first-quarter 2025 revenues of $402.3 million, up 5% from $384.3 million in the prior-year period, driven primarily by .com and .net price increases, partially offset by a decline in the .com and .net domain name base. Operating income rose 5% to $271.2 million, net income was $199.3 million, and diluted earnings per share were $2.10 compared with $1.92 a year earlier. Net cash provided by operating activities was $291.3 million, versus $257.3 million in the prior-year quarter. The filing states that the domain name base stood at 169.8 million .com and .net registrations as of March 31, 2025, down 1.5% from March 31, 2024, though the company noted a net increase of 0.8 million registrations from December 31, 2024, and that business conditions began improving at the end of 2024. The balance sheet remains in a stockholders' deficit of $1.98 billion at March 31, 2025. During the quarter, the company issued $500.0 million of 5.25% senior notes due 2032 and used the proceeds, along with cash on hand, to repay its $500.0 million of 5.25% notes due April 1, 2025. Cash and cash equivalents rose to $575.4 million, and total cash and marketable securities were $648.5 million. The company repurchased 1.0 million shares for $229.9 million under its buyback program, leaving $792.7 million available. On April 23, 2025, the Board declared a quarterly cash dividend of $0.77 per share, payable May 28, 2025, and the filing states the Board adopted a dividend program to begin in the second quarter of 2025. Management stated that the 2024 .com and .net renewal rate for the fourth quarter was 74.0% compared with 73.2% a year earlier, and that new registrations rose to 10.1 million from 9.5 million. Operating expenses grew modestly, with selling, general and administrative expenses up 8% to $55.7 million. Investors may also note the filing's risk factors on the concentration of revenue in the .com and .net registry agreements, pricing constraints, and Chinese regulatory pressure on demand.

    Apr 24, 2025
  7. 2024-Q3

    Verisign Quarterly Report for Q3 Ended Sep 30, 2024

    VeriSign, Inc. reported third-quarter 2024 revenues of $390.6 million, up 4% from $376.3 million in the prior-year quarter, and operating income of $269.3 million, up 6% from $254.3 million. For the nine months ended September 30, 2024, revenues were $1,162.0 million (up 4%) and operating income was $794.4 million (up 7%). Net income was $201.3 million for the quarter ($2.07 per diluted share) and $594.2 million for the nine months ($6.00 per diluted share). The company attributed revenue growth primarily to .com and .net price increases, partially offset by a decline in the domain name base, which fell 2.5% year over year to 169.6 million registrations, and by the elimination of .gov gTLD operation revenue after its transition to another provider in the fourth quarter of 2023. The filing notes that the net decrease of 1.1 million registrations from June 30, 2024 and the lower Q3 new registrations of 9.3 million versus 9.9 million reflect weaker demand, particularly in China, where revenues declined 10% in the quarter and 15% for the nine months. Capital allocation remained a major focus. The company repurchased 1.7 million shares for $300.9 million in the quarter and $949.3 million under its plans for the nine months. In July 2024, the Board authorized an additional $1.11 billion, bringing total availability to about $1.28 billion as of September 30, 2024. Cash, cash equivalents and marketable securities totaled $644.9 million, down from $926.4 million at year-end 2023, and stockholders' deficit widened to $(1,900.6) million. Senior notes total $1.79 billion including $299.7 million of 2025 notes classified as current, which management intends to refinance, with $200.0 million of credit facility capacity available as a backstop.

    Oct 24, 2024
  8. 2024-Q2

    Verisign Quarterly Report for Q2 Ended Jun 30, 2024

    VeriSign, Inc. reported revenues of $387.1 million for the three months ended June 30, 2024, up from $372.0 million a year earlier, and $771.4 million for the six months, compared with $736.4 million. Operating income was $266.2 million for the quarter and $525.1 million for the six months. Net income was $198.8 million for the quarter and $392.9 million for the six months, and diluted earnings per share were $2.01 and $3.93, respectively. The filing attributes revenue growth mainly to .com price increases effective September 1, 2023 and .net price increases effective February 1, 2024, partially offset by a decline in the domain name base, which fell to 170.6 million .com and .net registrations, a 2.2% decrease from June 30, 2023. New .com and .net registrations were 9.2 million in the quarter, compared with 10.2 million a year earlier, and the final first-quarter 2024 renewal rate was 74.1%, compared with 75.5% for the first quarter of 2023. Cash flow and capital returns remained central to the story. Net cash provided by operating activities was $417.7 million for the six months, versus $404.3 million a year earlier. During the quarter the company repurchased 2.2 million shares for $388.0 million, and total stockholders' deficit was $1.82 billion at June 30, 2024. Cash and cash equivalents plus marketable securities totaled $689.9 million, and the company had $750.0 million of 2.70% notes due 2031, $550.0 million of 4.75% notes due 2027, and $500.0 million of 5.25% notes due 2025. Effective July 25, 2024, the board authorized an additional $1.11 billion of repurchases, bringing total available authorization to up to $1.50 billion. The filing shows a company with stable, high-margin revenue from its registry operations, with the operating margin at 68.8% for the quarter. Investors will likely focus on whether pricing gains can continue to offset the ongoing decline in domain registrations, particularly in China, and on the pace of share repurchases given the company's negative equity position.

    Jul 25, 2024
  9. 2024-Q1

    Verisign Quarterly Report for Q1 Ended Mar 31, 2024

    VeriSign, Inc. reported first-quarter 2024 revenues of $384.3 million, up 5% from $364.4 million in the same period of 2023, and operating income of $258.9 million, up 7% from $241.3 million. Net income was $194.1 million, compared with $178.7 million a year earlier, and diluted earnings per share were $1.92, versus $1.70. Revenue growth was primarily attributed to price increases on .com registrations effective September 1, 2023 and 2022, while the domain name base fell to 172.5 million .com and .net registrations, a 1.3% decrease from March 31, 2023, with China revenue down 18%. Cash flow and capital return remained central. Operating cash flow was $257.3 million, compared with $259.0 million in the prior-year quarter. The company repurchased 1.3 million shares for $260.4 million during the quarter, leaving approximately $859.6 million available under its repurchase program. Cash and cash equivalents rose to $731.8 million from $240.1 million at year-end 2023, while marketable securities declined to $192.9 million from $686.3 million. Total stockholders' deficit widened to $1,635.7 million, and senior notes were carried at $1,790.7 million. The company stated it believes existing cash, marketable securities and operating cash flows will be sufficient to meet working capital, capital expenditure and debt service requirements for the next 12 months and beyond. Management also disclosed a pending ICANN Independent Review Process brought by Afilias Domains No. 3 Limited (now Altanovo Domains Limited), which the company and Nu Dotco, LLC have requested to join, and stated that other legal matters are not expected to have a material adverse effect.

    Apr 25, 2024
  10. 2023-Q3

    Verisign Quarterly Report for Q3 Ended Sep 30, 2023

    VeriSign, Inc. reported revenues of $376.3 million for the three months ended September 30, 2023, up 5% from $356.9 million a year earlier, and $1,112.7 million for the nine months, also up 5%. Operating income rose 7% to $254.3 million for the quarter and $744.3 million for the nine months. Net income was $188.5 million for the quarter, compared with $169.5 million in the prior-year period, and diluted earnings per share were $1.83, compared with $1.58. The company attributed the revenue increase mainly to .com registry price increases effective September 1, 2022 and 2021, partly offset by the end of revenue from the .tv ccTLD operation, which transitioned to another provider in the fourth quarter of 2022. Domain demand was mixed. The .com and .net domain name base stood at 173.9 million registrations, a 0.1% decrease from September 30, 2022, and the final second-quarter 2023 renewal rate was 73.4% versus 73.8% a year earlier. Management said softness in demand, primarily in China, has recently limited growth in the domain name base, and that revenues from China-based registrars declined in both the quarter and the nine months. The filing also notes a China regulatory environment that is affecting demand and imposing licensing and compliance requirements. Capital allocation and balance sheet items stand out. On July 27, 2023, the Board authorized a $1.14 billion repurchase increase, bringing the total authorization to up to $1.50 billion, with about $1.34 billion remaining as of September 30, 2023. The company repurchased 1.1 million shares for $219.9 million in the quarter. Cash and cash equivalents were $157.7 million and marketable securities were $785.8 million, while total stockholders' deficit was $(1,633.4) million. Operating cash flow was $649.6 million for the nine months, and the company bought a building in Reston, Virginia for $19.8 million as its future corporate headquarters.

    Oct 26, 2023
  11. 2023-Q2

    Verisign Quarterly Report for Q2 Ended Jun 30, 2023

    VeriSign, Inc. (VRSN) reported higher second-quarter 2023 results, with revenues of $372.0 million for the three months ended June 30, 2023, up 6% from $351.9 million a year earlier, and $736.4 million for the six months, up 5% from $698.8 million. Operating income rose to $248.7 million for the quarter (up 5%) and $490.0 million for the six months (up 6%). Net income was $185.7 million for the quarter versus $167.3 million in the prior-year quarter, and diluted EPS was $1.79 versus $1.54. Revenue growth was driven mainly by .com price increases effective September 1, 2022 and 2021, partly offset by the elimination of .tv ccTLD revenue after its transition to another provider in Q4 2022. Registrations were flat year over year at 174.4 million .com and .net domain names, and management cited softness in demand, primarily in China. The balance sheet shows a total stockholders' deficit of $1,617.9 million as of June 30, 2023, with total liabilities of $3,295.1 million against total assets of $1,677.2 million. Cash, cash equivalents and marketable securities totaled $935.6 million. Operating cash flow was $404.3 million for the six months, up from $352.0 million. The company repurchased 1.0 million shares for $220.0 million in the quarter, and on July 27, 2023 its Board authorized an additional $1.14 billion in repurchases, bringing the total authorization to up to $1.50 billion. Management stated that the .net registry agreement with ICANN was renewed through June 30, 2029, and that the .net wholesale fee will rise from $9.92 to $10.91 effective February 1, 2024. The .com wholesale fee is scheduled to increase from $8.97 to $9.59 effective September 1, 2023. Management believes existing cash and operating cash flows will be sufficient to meet needs for the next 12 months and beyond.

    Jul 27, 2023
  12. 2023-Q1

    Verisign Quarterly Report for Q1 Ended Mar 31, 2023

    VeriSign, Inc. reported first-quarter 2023 revenues of $364.4 million, up from $346.9 million in the prior-year quarter, with operating income of $241.3 million versus $224.8 million and net income of $178.7 million versus $157.5 million. Diluted earnings per share were $1.70, compared with $1.43 a year earlier. The filing attributes the revenue increase mainly to .com registry price increases effective September 1, 2022 and 2021, partly offset by the elimination of .tv ccTLD revenue after that registry was transitioned to another provider in the fourth quarter of 2022. The company had 174.8 million .com and .net registrations in the domain name base at March 31, 2023, essentially flat year over year. Cash generation remained strong, with net cash from operating activities of $259.0 million versus $207.1 million a year earlier. Cash and cash equivalents rose to $819.8 million, and marketable securities were $195.2 million, for total liquidity of $1,015.0 million at March 31, 2023. The company still reported a total stockholders' deficit of $1,593.8 million and senior notes of $1,788.5 million on the balance sheet. During the quarter it repurchased 1.1 million shares for $220.0 million, leaving approximately $638.8 million available under its repurchase program. Management stated that it expects existing cash, marketable securities and operating cash flows to meet working capital, capital expenditure and debt service needs for the next 12 months and beyond. The filing also notes that the .com wholesale fee will rise from $8.97 to $9.59 effective September 1, 2023, and that the .net fee increased to $9.92 effective February 1, 2023.

    Apr 27, 2023
  13. 2022-Q3

    Verisign Quarterly Report for Q3 Ended Sep 30, 2022

    VeriSign, Inc. reported third-quarter 2022 revenues of $356.9 million, up 7% from $334.3 million in the prior-year quarter, and operating income of $236.8 million, up 7% from $221.3 million. For the nine months ended September 30, 2022, revenues were $1,055.7 million and operating income was $697.6 million, up 7% and 8% respectively. Net income was $169.5 million for the quarter ($1.58 diluted EPS) versus $156.6 million a year earlier, and $494.3 million for the nine months. Growth was driven mainly by the September 1, 2021 price increase on .com registrations, partially offset by softer demand. The .com and .net domain name base reached 174.2 million, up 1% year over year but down a net 0.2 million from June 30, 2022, as demand eased from pandemic-era highs, particularly in China. Cash flow from operations was $614.2 million for the nine months, versus $600.9 million a year earlier. The company repurchased 1.5 million shares for $275.5 million in the quarter and $820.4 million year to date. Cash and cash equivalents were $560.6 million and marketable securities were $419.6 million at September 30, 2022. Total stockholders' deficit was $1,542.4 million, and senior notes were carried at $1,787.4 million. On October 27, 2022, the Board authorized an additional $803.0 million of buybacks, bringing total available authorization to $1.00 billion. Management cites a planned increase in the .net wholesale fee from $9.02 to $9.92 effective February 1, 2023, and a .com wholesale fee increase from $8.39 to $8.97 that took effect September 1, 2022. Management states that COVID-19-related incremental domain demand has subsided, and that existing liquidity is sufficient for working capital, capital expenditures and debt service for the next 12 months and beyond.

    Oct 27, 2022
  14. 2022-Q2

    Verisign Quarterly Report for Q2 Ended Jun 30, 2022

    VeriSign, Inc. reported second-quarter 2022 revenues of $351.9 million, up from $329.4 million a year earlier, and operating income of $236.0 million versus $213.0 million. Net income for the quarter was $167.3 million, or $1.54 per diluted share, compared with $147.7 million, or $1.31 per diluted share, in the prior-year quarter. For the six months ended June 30, 2022, revenues were $698.8 million, net income was $324.8 million, and operating cash flow was $352.0 million. The company's domain name base for .com and .net stood at 174.3 million registrations as of June 30, 2022, a 2% increase from June 30, 2021, but down a net 0.4 million from March 31, 2022. Management attributed the sequential decline to the subsiding of pandemic-era demand, recent global economic uncertainty, and reduced demand, primarily in China. New domain name registrations for the quarter were 10.1 million, compared with 11.7 million a year earlier. Capital allocation remained focused on share repurchases: the company bought back 2.0 million shares for $349.5 million in the quarter, leaving $543.1 million under a $1.00 billion authorization with no expiration date. Cash and cash equivalents rose to $606.3 million, while marketable securities fell to $390.6 million. Total stockholders' deficit was $(1,455.0) million at June 30, 2022. The company also announced a registry-level wholesale fee increase for .net registrations, from $9.02 to $9.92, effective February 1, 2023.

    Jul 28, 2022
  15. 2022-Q1

    Verisign Quarterly Report for Q1 Ended Mar 31, 2022

    VeriSign, Inc. reported first-quarter 2022 revenues of $346.9 million, up 7% from $323.6 million in the prior-year period, with operating income of $224.8 million (up 7% from $210.4 million) and net income of $157.5 million versus $150.4 million a year earlier. Diluted earnings per share were $1.43, compared with $1.33. The filing attributes the revenue increase primarily to higher .com registry revenue, driven by a 4% increase in the domain name base to 174.7 million .com and .net registrations and the price increase effective September 1, 2021. Revenues rose in all regions except China, where lower new registrations and renewal rates reduced results. Management noted that incremental pandemic-related demand for domain names appears to have subsided. Cash generation remained strong, with operating cash flow of $207.1 million versus $198.3 million a year earlier. Cash and cash equivalents rose to $758.5 million from $223.5 million at year-end, while marketable securities fell to $451.1 million from $982.3 million. The company repurchased 0.9 million shares for $195.5 million during the quarter and had $892.6 million remaining under its share repurchase program, which was expanded by the board on February 10, 2022 to a total authorization of up to $1.00 billion. The company also reported a stockholders' deficit of $1,285.1 million and total liabilities of $3,258.3 million against total assets of $1,973.2 million. Management stated that existing cash, marketable securities and operating cash flow should be sufficient to meet working capital, capital expenditure and debt service needs for the next 12 months and beyond. The filing also announced that the .com annual registry-level wholesale fee will rise from $8.39 to $8.97 effective September 1, 2022.

    Apr 28, 2022
  16. 2021-Q3

    Verisign Quarterly Report for Q3 Ended Sep 30, 2021

    VeriSign, Inc. reported third-quarter 2021 revenues of $334.2 million, up 5% from $317.9 million a year earlier, and operating income of $221.3 million, up from $206.6 million. For the nine months ended September 30, 2021, revenues were $987.3 million (up 4%) and operating income was $644.7 million (up 4%). Net income was $156.6 million for the quarter versus $171.0 million in the prior-year period, and $454.7 million for the nine months versus $657.6 million, with the 2020 nine-month figure boosted by a $167.8 million worthless stock deduction benefit recognized in the first quarter of 2020. Diluted EPS was $1.40 for the quarter versus $1.49 a year earlier. Growth drivers were the .com and .net domain name base, which reached 172.1 million registrations, a 5% increase year over year, and a .com wholesale fee increase from $7.85 to $8.39 effective September 1, 2021. Management expects quarterly revenues to keep growing in the fourth quarter of 2021 versus each of the first three quarters. China revenues declined 10% in the quarter and 14% for the nine months due to lower new registrations and renewal rates. Capital allocation remained active. The company repurchased 0.8 million shares for $172.4 million in the quarter, with about $565.1 million left under its repurchase authorization. In June 2021 it issued $750.0 million of 2.700% senior notes due 2031 and used the proceeds, plus cash on hand, to redeem its $750.0 million 4.625% notes due 2023. Stockholders' deficit stood at $1.42 billion at September 30, 2021, and cash, cash equivalents and marketable securities totaled $1.20 billion.

    Oct 28, 2021
  17. 2021-Q2

    Verisign Quarterly Report for Q2 Ended Jun 30, 2021

    VeriSign, Inc. (VRSN) reported revenues of $329.4 million for the three months ended June 30, 2021, up from $314.4 million a year earlier, and $653.0 million for the six months, up from $626.9 million. Operating income was $213.0 million for the quarter and $423.4 million for the half-year. Net income was $147.8 million for the quarter, compared with $152.5 million in the prior-year quarter. Six-month net income of $298.1 million compares with $486.6 million in 2020, which included a $167.8 million tax benefit recognized in the first quarter of 2020. The company reported 170.6 million .com and .net registrations in the domain name base as of June 30, 2021, a 5% increase from June 30, 2020. The balance sheet shows cash and cash equivalents of $216.5 million and marketable securities of $906.5 million at June 30, 2021, and a total stockholders' deficit of $1.42 billion. In June 2021 the company issued $750.0 million of 2.700% senior notes due 2031 and used the proceeds, with cash on hand, to redeem all $750.0 million of its 4.625% notes due 2023. The company repurchased 0.8 million shares for $172.5 million in the quarter, with approximately $737.5 million remaining under its repurchase authorization. Management expects revenues to keep growing in the remainder of 2021, citing the .com price increase to $8.39 effective September 1, 2021. The filing also describes the .web IRP proceeding. The panel dismissed Afilias' claims seeking to invalidate the .web auction or award the TLD to Afilias, but found that certain ICANN actions violated aspects of its bylaws, and it recommended that ICANN's Board reconsider the objections. Afilias filed a request for interpretation or amendment on June 19, 2021, and Verisign expects a ruling in Q4 2021.

    Jul 22, 2021
  18. 2021-Q1

    Verisign Quarterly Report for Q1 Ended Mar 31, 2021

    VeriSign, Inc. reported first-quarter 2021 revenues of $323.6 million, up 4% from $312.5 million a year earlier, and operating income of $210.4 million, up 2% from $206.3 million. The company attributed the revenue growth primarily to higher .com registry revenue, driven by a 5% increase in the .com and .net domain name base to 168.0 million registrations. Revenues rose in every region except China, where lower new registrations and renewal rates reduced revenue. Net income was $150.4 million, or $1.33 per diluted share, compared with $334.1 million, or $2.86 per diluted share, in the prior-year quarter. The prior-year period included a $167.8 million income tax benefit from remeasuring unrecognized tax benefits, so the decline reflects that one-time item rather than operating performance. Cash provided by operating activities was $198.3 million, up from $180.1 million. The company repurchased 0.9 million shares for $172.6 million and had approximately $910.0 million remaining under its repurchase program. Cash, cash equivalents and marketable securities totaled $1.18 billion, and the stockholders' deficit was $(1.40) billion. The company stated that it will increase the .com registry-level wholesale fee from $7.85 to $8.39 effective September 1, 2021, and expects its 2021 annual effective tax rate to be between 20% and 23%. The filing also notes that the IRP panel in the Afilias proceeding over the .web auction formally closed the hearing on April 7, 2021, with a final decision expected within 60 days.

    Apr 22, 2021
  19. 2020-Q3

    Verisign Quarterly Report for Q3 Ended Sep 30, 2020

    VeriSign, Inc. (VRSN) reported third-quarter 2020 revenues of $317.9 million, up from $308.4 million in the same period of 2019, and nine-month revenues of $944.8 million versus $921.1 million. Operating income was $206.6 million for the quarter and $619.7 million for the nine months. Net income was $171.0 million for the quarter and $657.6 million for the nine months, the latter boosted by $191.8 million of income tax benefits from remeasured previously unrecognized tax benefits, including a $167.8 million benefit tied to a 2013 worthless stock deduction. The company's .com and .net domain name base reached 163.7 million registrations, a 4% increase from September 30, 2019, and the filing states that the effects of the COVID-19 pandemic have increased demand for domain names, though the situation remains uncertain. Cash flow and balance sheet data show net cash provided by operating activities of $535.0 million for the nine months, compared with $560.3 million a year earlier. As of September 30, 2020, the company held $145.7 million in cash and cash equivalents and $1,004.7 million in marketable securities, against $1.79 billion of senior notes on the balance sheet. The company repurchased 0.8 million shares for $170.0 million in the quarter and 2.8 million shares for $564.9 million over nine months, with approximately $505.6 million remaining under its repurchase authorization. Stockholders' deficit narrowed to $(1.39) billion from $(1.49) billion at year-end 2019. The filing notes that the company expects a .com price increase by October 25, 2021, after freezing registry prices through March 31, 2021, and that its annual effective tax rate for 2020 is expected to be a net benefit of between 6% and 9%. The company also disclosed a registration renewal rate of 72.8% for the second quarter of 2020, compared with 74.2% a year earlier.

    Oct 22, 2020
  20. 2020-Q2

    Verisign Quarterly Report for Q2 Ended Jun 30, 2020

    VeriSign, Inc. reported second-quarter 2020 revenues of $314.4 million, up 3% from $306.3 million in the prior-year quarter, and operating income of $206.8 million, compared with $201.7 million a year earlier. Net income was $152.5 million for the quarter, versus $147.5 million in the second quarter of 2019. For the six months ended June 30, 2020, revenues were $626.9 million and net income was $486.6 million, which includes a $167.8 million benefit recognized in the first quarter from remeasuring previously unrecognized tax benefits tied to a 2013 worthless stock deduction. The domain name base reached 162.1 million .com and .net registrations as of June 30, 2020, a 4% increase from a year earlier, and the company processed 11.1 million new registrations in the quarter. Cash flow and capital return remained central. Net cash provided by operating activities was $395.4 million for the six months, up from $352.2 million. The company repurchased 0.7 million shares for $150.0 million in the quarter and had about $675.6 million remaining under its share repurchase program. Cash and cash equivalents totaled $306.7 million and marketable securities $887.9 million at June 30, 2020. Total stockholders' deficit narrowed to $1.40 billion, and senior notes stood at $1.79 billion carrying value. Management stated that the COVID-19 pandemic had not had a material impact on operations or results to date, though it noted the situation remains uncertain. On July 23, 2020, the company extended its freeze on registry prices for all TLDs, including .com and .net, through March 31, 2021, and extended the waiver of the wholesale restore fee for expired domains through the end of 2020. Management expects a .com price increase by October 25, 2021, under the Third .com Amendment.

    Jul 23, 2020
  21. 2020-Q1

    Verisign Quarterly Report for Q1 Ended Mar 31, 2020

    VeriSign, Inc. reported first-quarter 2020 revenues of $312.5 million, up 2% from $306.4 million in the same period of 2019, and operating income of $206.3 million, up 3% from $200.2 million. Net income was $334.1 million, or $2.86 diluted earnings per share, compared with $162.5 million a year earlier. The result was driven largely by a $167.8 million income tax benefit from remeasuring previously unrecognized tax benefits tied to a 2013 worthless stock deduction; the effective tax rate was (75)% versus 14% in the prior-year quarter. The company's domain name base reached 160.7 million .com and .net registrations, a 4% increase from March 31, 2019, and it processed 10.0 million new registrations, compared with 9.8 million a year earlier. Cash flow and capital return remained central. Net cash provided by operating activities was $180.1 million, versus $187.3 million a year earlier. Verisign repurchased 1.3 million shares for $245.0 million, and about $825.6 million remained available under the repurchase program after the Board increased authorization by $743.0 million in February 2020. Cash and cash equivalents plus marketable securities totaled $1.14 billion, against senior notes of $1.79 billion on the balance sheet, and stockholders' deficit narrowed to $(1.41) billion. On March 27, 2020, Verisign and ICANN entered into the Third .com Amendment, permitting annual .com price increases of up to 7% in each of the final four years of each six-year period. In response to COVID-19, the company froze registry prices for all its TLDs, including .com and .net, through the end of 2020. Management stated it did not believe the pandemic had a material impact on its business to date, while acknowledging that the situation remains uncertain.

    Apr 23, 2020
  22. 2019-Q3

    Verisign Quarterly Report for Q3 Ended Sep 30, 2019

    VeriSign, Inc. (VRSN) reported third-quarter 2019 revenues of $308.4 million, up 1% from $305.8 million in the same period of 2018, and operating income of $205.6 million, up 5% from $195.0 million. For the nine months ended September 30, 2019, revenues were $921.1 million (up 1%) and operating income was $607.6 million (up 6%). Net income was $153.9 million for the quarter ($1.30 diluted EPS, versus $1.13 a year earlier) and $464.0 million for the nine months ($3.89 diluted EPS, versus $3.25). Growth was driven by the .com and .net registries, partly offset by the decline in Security Services revenue as customers transitioned their contracts to Neustar, Inc. The domain name base reached 157.4 million .com and .net registrations as of September 30, 2019, a 4% increase from a year earlier. The company processed 9.9 million new registrations in the quarter, and its final .com and .net renewal rate for the second quarter of 2019 was 74.2%, compared with 75.0% a year earlier. Operating cash flow for the nine months was $560.3 million, versus $479.3 million in 2018. Cash and cash equivalents were $109.3 million and marketable securities were $1.12 billion at quarter end, while total stockholders' deficit was $1.45 billion and senior notes carried a book value of $1.79 billion. Capital returns remained a priority. The company repurchased 1.0 million shares for $194.0 million in the quarter and 2.9 million shares for $543.9 million over the nine months, leaving approximately $522.1 million available under its $1.0 billion authorization. Management expects revenue growth in the remainder of 2019 to remain consistent with the nine-month rate. The filing also notes an ongoing Independent Review Process brought by Afilias concerning the .web gTLD, with a ruling expected in the fourth quarter of 2019.

    Oct 24, 2019
  23. 2019-Q2

    Verisign Quarterly Report for Q2 Ended Jun 30, 2019

    VeriSign, Inc. (VRSN) reported second-quarter 2019 results in this Form 10-Q, filed July 25, 2019. Revenues were $306.3 million for the three months ended June 30, 2019, up from $302.5 million a year earlier, and $612.7 million for the six months, up from $601.7 million. Operating income was $201.7 million for the quarter and $401.9 million for the six months. Net income was $147.5 million for the quarter, or $1.24 per diluted share, and $310.1 million for the six months, or $2.59 per diluted share. Net cash provided by operating activities was $352.2 million for the six months, compared with $291.8 million a year earlier. The company reported 156.1 million .com and .net registrations in the domain name base as of June 30, 2019, a 4% increase from June 30, 2018. Management expects revenues to remain consistent in the remainder of 2019 compared with the first six months, as growth in .com domain names is offset by a decline in Security Services revenue as remaining customers transition their contracts to Neustar, Inc. At June 30, 2019, VeriSign held $751.6 million in cash and cash equivalents and $473.4 million in marketable securities, against $1.79 billion of senior notes and a total stockholders' deficit of $1.43 billion. During the six months, the company repurchased $349.9 million of common stock, and $716.1 million remained available under its repurchase program. The filing also describes the extension of the Cooperative Agreement with the Department of Commerce through November 30, 2024, and the pricing terms for .com domain names.

    Jul 25, 2019
  24. 2019-Q1

    Verisign Quarterly Report for Q1 Ended Mar 31, 2019

    VeriSign, Inc. reported first-quarter 2019 revenues of $306.4 million, up 2% from $299.3 million in the first quarter of 2018, and operating income of $200.3 million, up 8% from $185.4 million. Net income was $162.5 million, compared with $134.3 million a year earlier, and diluted earnings per share were $1.35 versus $1.09. The filing attributes revenue growth mainly to higher .com and .net registry revenues, driven by a 5% increase in the .com domain name base and the February 2018 increase in .net registration fees, partially offset by a 4% decline in the .net domain name base. The .com and .net domain name base reached 154.8 million registrations as of March 31, 2019, a 4% increase from March 31, 2018, and the company processed 9.8 million new registrations in the quarter compared with 9.6 million a year earlier. Cash flow and capital returns were strong. Net cash provided by operating activities was $187.3 million, versus $90.0 million in the prior-year quarter. Cash and cash equivalents rose to $779.6 million and marketable securities totaled $473.4 million at quarter end. The company repatriated $249.0 million of cash held by foreign subsidiaries, net of $13.1 million of foreign withholding taxes, and repurchased 1.0 million shares for $175.0 million. About $891.1 million remained available under the share repurchase program, which the Board expanded in February 2019 to a total authorization of up to $1.0 billion. Stockholders' deficit narrowed to $1.41 billion from $1.39 billion at December 31, 2018 because of share repurchases, while senior notes stood at $1.79 billion. The filing also highlights ongoing developments that bear on future results. Amendment 35 to the Cooperative Agreement with the Department of Commerce, entered October 26, 2018, extends the .com term to November 30, 2024 and permits .com price increases of up to 7% in each of the final four years of each six-year period. Management expects quarterly revenues to remain consistent through the rest of 2019, with a decline in Security Services revenue offsetting .com growth as customers transition to Neustar. The filing also discloses an Afilias arbitration against ICANN concerning the .web auction, in which Verisign and NDC have sought to participate as interested parties.

    Apr 25, 2019
  25. 2018-Q3

    Verisign Quarterly Report for Q3 Ended Sep 30, 2018

    VeriSign, Inc. reported third-quarter 2018 revenues of $305.8 million, up 5% from $292.4 million a year earlier, and nine-month revenues of $907.5 million, up 4% from $869.6 million. Operating income was $195.0 million for the quarter and $573.4 million for the nine months, each an 8% increase versus the same periods in 2017. Net income was $137.7 million for the quarter, compared with $114.9 million, and diluted EPS was $1.13, compared with $0.93. The domain name base reached 151.7 million .com and .net registrations, a 4% increase from September 30, 2017, and net cash from operating activities was $479.3 million for the nine months. The balance sheet shows a stockholders' deficit of $1.40 billion at September 30, 2018. This reflects the May 1, 2018 settlement of the Subordinated Convertible Debentures, which required $1.25 billion of principal to be paid in cash and 26.1 million shares to be issued for the $3.17 billion conversion excess. Cash and cash equivalents plus marketable securities totaled $1.18 billion, down from $2.41 billion at December 31, 2017. The company repurchased 1.1 million shares for $175.0 million in the quarter, and $638.3 million remained available under its repurchase authorization. On October 24, 2018, the company agreed to sell the rights and obligations in its Security Services customer contracts to NeuStar, Inc. for a purchase price capped at $120.0 million, including $50.0 million due at closing and a contingent amount due after the first anniversary of closing. The filing also flags regulatory and governmental risks, including the Cooperative Agreement with the Department of Commerce, which expires November 30, 2018 unless extended, and the .com Registry Agreement term through November 30, 2024.

    Oct 25, 2018
  26. 2018-Q2

    Verisign Quarterly Report for Q2 Ended Jun 30, 2018

    VeriSign, Inc. reported second-quarter 2018 revenues of $302.5 million, up 5% from the prior-year quarter, and operating income of $193.0 million, up 10%. Net income for the quarter was $128.4 million, compared with $123.1 million a year earlier. For the six months ended June 30, 2018, revenues were $601.7 million and net income was $262.6 million. The filing states that .com and .net domain name registrations in the domain name base reached 149.7 million, a 4% increase from June 30, 2017. The most significant balance sheet event was the May 1, 2018 settlement of the Subordinated Convertible Debentures. The company paid $1.25 billion in cash for principal and issued 26.1 million shares of common stock for the $3.17 billion conversion value excess, recognizing a $6.6 million extinguishment loss. Cash and cash equivalents fell to $256.4 million and marketable securities to $914.9 million, and total stockholders' deficit was $(1,380,989) thousand at June 30, 2018. The company repurchased 1.0 million shares for $125.0 million in the quarter, and $813.3 million remained available under its share repurchase program. The filing also flags regulatory and contractual risks. The Cooperative Agreement with the DOC expires November 30, 2018 unless extended, and the .com Registry Agreement requires good-faith negotiation of amended terms by October 20, 2018. Management expects revenue growth rates to remain consistent through the rest of 2018 and expects quarterly interest expense to decrease.

    Jul 26, 2018
  27. 2018-Q1

    Verisign Quarterly Report for Q1 Ended Mar 31, 2018

    VeriSign, Inc. reported first-quarter 2018 revenues of $299.3 million, up from $288.6 million a year earlier, with operating income of $185.4 million compared with $175.3 million. Net income rose to $134.3 million from $116.4 million, and diluted earnings per share were $1.09 versus $0.94. The filing states that .com and .net registrations in the domain name base reached 148.3 million, a 3% increase from March 31, 2017, and the company expects the rate of revenue growth to remain consistent for the rest of 2018. Cash flow and balance sheet activity were dominated by capital actions. Net cash provided by operating activities fell to $90.0 million from $148.2 million, mainly because of higher cash taxes and interest paid. The company repatriated $1.15 billion of cash from foreign subsidiaries, net of $60.7 million of foreign withholding taxes, which lifted cash and cash equivalents to $1.70 billion at March 31, 2018. The company repurchased 1.1 million shares for $124.9 million, and $938.3 million remained available under its repurchase program. Total stockholders' deficit improved to $(1.23) billion from $(1.26) billion. The key forward-looking event is the planned redemption on May 1, 2018 of all outstanding 3.25% Subordinated Convertible Debentures, with $1.25 billion of principal to be settled in cash and any remaining value settled in shares. The company expects quarterly interest expense and non-operating income to decrease for the rest of 2018 after the redemption. The filing also notes that the U.S. Cooperative Agreement with the DOC expires on November 30, 2018 unless extended, and that the .com Registry Agreement contains pricing restrictions, which are discussed in the risk factors.

    Apr 26, 2018
  28. 2017-Q3

    Verisign Quarterly Report for Q3 Ended Sep 30, 2017

    VeriSign, Inc. reported third-quarter 2017 revenues of $292.4 million, up 2% from $287.6 million in the year-earlier quarter, and operating income of $181.1 million, up 4%. For the nine months ended September 30, 2017, revenues were $869.6 million (up 2%) and operating income was $531.3 million (up 3%). Net income was $114.9 million for the quarter and $354.4 million for the nine months, compared with $114.4 million and $335.1 million a year earlier. Diluted EPS was $0.93 for the quarter and $2.85 for the nine months. The company's .com and .net domain name base reached 145.8 million registrations, up 1% year over year, with a final .com and .net renewal rate of 74.0% for the second quarter of 2017. Balance sheet and capital activity were significant in the period. Cash, cash equivalents and marketable securities totaled $2.37 billion at September 30, 2017. On July 5, 2017, the company issued $550.0 million of 4.75% senior notes due 2027, and total stockholders' deficit was $1.23 billion. The company repurchased 5.0 million shares for $447.6 million during the nine months, and $622.5 million remained available under the repurchase program. Operating cash flow was $503.6 million for the nine months. Interest expense rose to $37.8 million in the quarter from $28.9 million a year earlier, and management expects it to increase further in the fourth quarter. The filing also discloses a Department of Justice Civil Investigative Demand received January 18, 2017, relating to the company's role as registry operator for the .web gTLD. The company is cooperating and states it cannot currently estimate a range of outcomes. Management expects revenue growth to increase in the fourth quarter of 2017 compared with the first nine months.

    Oct 26, 2017
  29. 2017-Q2

    Verisign Quarterly Report for Q2 Ended Jun 30, 2017

    VeriSign, Inc. reported second-quarter 2017 revenues of $288.6 million, up 1% from $286.4 million in the prior-year quarter, and six-month revenues of $577.2 million, up 2% from $568.3 million. Operating income was $175.0 million for the quarter (down 1%) and $350.2 million for the six months (up 2%). Net income was $123.1 million for the quarter and $239.5 million for the six months, with diluted EPS of $0.99 and $1.93, respectively. The company's domain name base reached 144.3 million .com and .net registrations, up 1% year over year, and cash from operations for the six months was $328.9 million. The quarter included a $10.6 million pre-tax gain from the April 1, 2017 sale of the iDefense business and share repurchases of $150.5 million in the quarter, with $769.5 million remaining under the authorization. Total cash, cash equivalents and marketable securities were $1.8 billion at June 30, 2017, against $3.5 billion of total liabilities and a stockholders' deficit of $1.2 billion. Subsequent to quarter-end, the company issued $550.0 million of 4.75% Senior Notes due 2027 on July 5, 2017, and the filing notes a June 2017 renewal of the .net Registry Agreement through June 30, 2023. The filing also discloses a Department of Justice Civil Investigative Demand received January 18, 2017 relating to the .web gTLD, with the company stating it cannot estimate a range of outcomes. Management expects second-half 2017 revenue to be consistent with the first six months, and it announced a .net annual fee increase from $8.20 to $9.02 effective February 1, 2018.

    Jul 27, 2017
  30. 2017-Q1

    Verisign Quarterly Report for Q1 Ended Mar 31, 2017

    VeriSign, Inc. reported first-quarter 2017 revenues of $288.6 million, up 2% from $281.9 million a year earlier, and operating income of $175.3 million, up 5% from $166.8 million. Net income rose to $116.4 million from $107.5 million, and diluted earnings per share were $0.94 versus $0.82. Growth was supported by a 1% increase in the .com and .net domain name base to 143.6 million registrations and by the February 2016 and February 2017 increases in the .net registration fee, partly offset by a decline in China revenues to $27.5 million from $31.2 million. Cash generation remained steady, with operating cash flow of $148.2 million compared with $149.6 million a year earlier. The company ended the quarter with $454.6 million in cash and cash equivalents and $1.3 billion in marketable securities, and it repurchased 1.8 million shares for $150.0 million. Following a February 9, 2017 Board authorization, $920.1 million remained available under the share repurchase program at March 31, 2017. The company also completed the sale of its iDefense business on April 1, 2017. Investors should note several items: the final .com and .net renewal rate for the fourth quarter of 2016 was 67.6% versus 73.3% a year earlier, the Subordinated Convertible Debentures are convertible through June 30, 2017, and the company disclosed a Department of Justice Civil Investigative Demand related to its role as registry operator for the .web gTLD, with no estimate of potential outcomes.

    Apr 27, 2017
  31. 2016-Q3

    Verisign Quarterly Report for Q3 Ended Sep 30, 2016

    VeriSign, Inc. reported third-quarter 2016 revenues of $287.6 million, up 8% from $265.8 million a year earlier, and nine-month revenues of $855.9 million, up 9%. Operating income rose 13% to $174.8 million for the quarter and 16% to $517.8 million for the nine months. Net income was $114.4 million for the quarter versus $92.5 million in the prior-year quarter, and diluted EPS was $0.90 versus $0.70. The company had 144.1 million .com and .net registrations in the domain name base at September 30, 2016, a 7% increase year over year. Management expects the rate of full-year 2016 revenue growth to decrease slightly in the fourth quarter. Cash and cash equivalents plus marketable securities totaled $1.76 billion at September 30, 2016, against a total stockholders' deficit of $1.17 billion. The company repurchased 2.2 million shares for $177.0 million in the quarter and $476.8 million year to date, with $588.9 million remaining under its authorization. It also paid $145.0 million in deposits toward acquiring the rights to the .web gTLD, pending ICANN approval. On October 20, 2016, the U.S. Department of Commerce approved an extension of the .com Registry Agreement through November 30, 2024. The filing highlights risks tied to the .com and .net registry agreements, the potential for the 3.25% subordinated convertible debentures to become convertible through December 31, 2016, and the transition of IANA and root zone management functions away from U.S. Government oversight. Investors should weigh strong profit growth against the company's dependence on .com and .net registration volume and its significant debt and stockholders' deficit.

    Oct 27, 2016
  32. 2016-Q2

    Verisign Quarterly Report for Q2 Ended Jun 30, 2016

    VeriSign, Inc. reported second-quarter 2016 revenues of $286.5 million, up 9% from $262.5 million a year earlier, with operating income of $176.3 million, up 18%. Net income for the quarter was $113.2 million, compared with $93.0 million in the second quarter of 2015. For the six months ended June 30, 2016, revenues were $568.3 million and net income was $220.7 million. The filing attributes revenue growth primarily to the .com and .net registries, with the domain name base reaching 143.2 million names, up 7% year over year, and a .net annual fee increase effective February 2016. The company states it expects revenues in the second half of 2016 to remain consistent with the first six months. The balance sheet shows cash, cash equivalents and marketable securities of $1.9 billion as of June 30, 2016, against $3.4 billion of total liabilities, and a total stockholders' deficit of $1.13 billion. Subordinated convertible debentures of $1.25 billion principal are convertible at holders' option through September 30, 2016, and the company says it does not expect a material amount to convert near term. The company repurchased 3.5 million shares for $299.8 million in the first half, leaving $765.9 million available under its share repurchase program. Operating cash flow was $304.3 million for the six months, versus $307.6 million a year earlier. A subsequent-event disclosure states the company committed to pay approximately $130.0 million for the future assignment of contractual rights, subject to third-party consent, with payment expected in the third quarter of 2016. The filing also notes that the .com Registry Agreement extension and the Root Zone Maintainer Service Agreement were posted by ICANN for public comment in June 2016, and that the company announced on July 28, 2016 a .net fee increase from $7.46 to $8.20 effective February 1, 2017.

    Jul 28, 2016
  33. 2016-Q1

    Verisign Quarterly Report for Q1 Ended Mar 31, 2016

    VeriSign, Inc. reported first-quarter 2016 revenues of $281.9 million, up 9% from $258.4 million a year earlier, and operating income of $166.8 million, up 16%. Net income was $107.5 million versus $88.2 million in the prior-year quarter, and diluted EPS was $0.82 compared with $0.66. The domain name base for .com and .net reached 142.5 million names at March 31, 2016, a 7% increase, with 10.0 million new registrations processed in the quarter versus 8.7 million a year earlier. Management expects revenues to continue increasing through the remainder of 2016, citing higher registration volumes and .net fee increases. Cash flow from operations rose to $143.6 million from $132.7 million. The company held $234.0 million in cash and cash equivalents and $1.7 billion in marketable securities at quarter end, against $1.25 billion of 3.25% subordinated convertible debentures due 2037 and senior notes of $750.0 million (due 2023) and $500.0 million (due 2025). Stockholders' deficit widened to $1.108 billion from $1.070 billion at year-end. The company repurchased 1.8 million shares for $149.9 million during the quarter and had $915.8 million remaining under its repurchase authorization, after the board added $611.2 million on February 11, 2016. Investors should note that the convertible debentures became convertible at holders' option through June 30, 2016 because the stock price exceeded the conversion trigger. Management does not expect a material amount to convert near term, but any settlement in cash could require additional financing. Contingent interest of $6.8 million is payable in August 2016, and the company's .com pricing is fixed at $7.85 through November 30, 2018, subject to limited exceptions. One registrar accounts for approximately 30% of revenues, and the company flagged ongoing risks from new gTLD delegations and the pending transition of root zone maintenance.

    Apr 28, 2016
  34. 2015-Q3

    Verisign Quarterly Report for Q3 Ended Sep 30, 2015

    VeriSign, Inc. reported third-quarter 2015 revenues of $265.8 million, up 4% from $255.0 million in the prior-year quarter, and operating income of $154.5 million, up 11% from $139.5 million. For the nine months ended September 30, 2015, revenues were $786.7 million (up 4%) and operating income was $447.7 million (up 6%). Net income was $92.5 million for the quarter versus $95.2 million a year earlier, and $273.7 million for the nine months versus $289.8 million, with higher interest expense and an increased tax expense (effective tax rate of 24% for both periods) weighing on the bottom line. Growth was driven by the .com and .net registry, with 135.2 million names in the domain name base, up 3% year over year, and a $6.8 per-year .net fee increase effective in February 2015. Cash flow and capital returns were the main financial developments. Net cash from operating activities rose to $462.9 million for the nine months from $430.5 million. The company issued $500.0 million of 5.25% senior notes due 2025 in March 2015 and repurchased $156.0 million of stock in the quarter, leaving $604.6 million available under its buyback program. Cash, cash equivalents and marketable securities totaled $1.89 billion at September 30, 2015, while stockholders' deficit was $1.03 billion and total liabilities were $3.61 billion. Management flagged risks including the introduction of new gTLDs, which it believes is affecting growth in .com and, to a larger extent, .net registrations; uncertainty around the DOC's approval of .com pricing; the conversion status of the $1.25 billion Subordinated Convertible Debentures, which are convertible through December 31, 2015; and the IRS examination of the 2013 worthless stock deduction. Management expects revenue to keep increasing through the remainder of 2015.

    Oct 22, 2015
  35. 2015-Q2

    Verisign Quarterly Report for Q2 Ended Jun 30, 2015

    VeriSign, Inc. reported second-quarter 2015 results with revenues of $262.5 million, up 5% from $250.4 million a year earlier, and operating income of $149.0 million, up 4%. For the six months ended June 30, 2015, revenues were $521.0 million (up 4%) and operating income was $293.2 million. Net income was $93.0 million for the quarter versus $100.2 million a year earlier, and $181.2 million for the six months versus $194.6 million. Growth was driven by a 3% increase in the .com and .net domain name base to 133.5 million names and a higher .net registration fee. Net cash from operating activities rose to $307.6 million for the six months from $262.7 million. The balance sheet shows cash, cash equivalents and marketable securities of $1.88 billion at June 30, 2015, with $1.7 billion in U.S. Treasury debt securities. Total liabilities of $3.56 billion exceeded total assets of $2.57 billion, resulting in a total stockholders' deficit of $994.3 million. The company issued $500.0 million of 5.25% senior notes due 2025 in March 2015, and senior notes rose to $1.23 billion. The company repurchased 5.2 million shares for $315.7 million in the first half of 2015, with $760.6 million remaining under its buyback authorization. The filing highlights several risk items: the 3.25% subordinated convertible debentures became convertible through September 30, 2015 after the stock price exceeded the conversion trigger, the company announced a .net fee increase to $7.46 effective February 1, 2016, and the NTIA's planned transition of IANA oversight could affect its Root Zone Maintainer role. Management expects revenues to continue increasing in fiscal 2015 and expects interest expense to rise due to the 2025 Senior Notes.

    Jul 23, 2015
  36. 2015-Q1

    Verisign Quarterly Report for Q1 Ended Mar 31, 2015

    VeriSign, Inc. reported first-quarter 2015 revenues of $258.4 million, up 4% from $248.8 million in the first quarter of 2014, with operating income of $144.2 million (up 3%) and net income of $88.2 million, compared with $94.4 million a year earlier. Growth was driven mainly by the .com and .net registries, with the domain name base reaching 133.0 million names, a 3% increase year over year. Diluted earnings per share were $0.66 versus $0.64 in the prior-year quarter. Operating cash flow was $132.7 million, down from $141.6 million. The balance sheet changed significantly during the quarter. On March 27, 2015, the company issued $500.0 million of 5.25% senior notes due 2025 and entered into a new $200.0 million unsecured revolving credit facility on March 31, 2015, with no borrowings outstanding. Senior notes rose to $1.25 billion from $750.0 million, and cash and cash equivalents increased to $705.9 million. Total stockholders' deficit widened to $947.9 million from $883.5 million, reflecting $178.3 million of share repurchases in the quarter. The company repurchased 2.7 million shares for $159.8 million and had $916.6 million remaining under its buyback authorization as of March 31, 2015. The filing also highlights ongoing risks. The Subordinated Convertible Debentures remain convertible because the stock price exceeded the conversion trigger, and the company paid $5.2 million of contingent interest in February 2015. Management expects revenue to keep increasing in fiscal 2015, while interest expense is expected to rise because of the new notes. The company also faces risks from the introduction of new gTLDs, potential changes in ICANN and DOC agreements, and the NTIA's planned transition of IANA oversight.

    Apr 23, 2015
  37. 2014-Q3

    Verisign Quarterly Report for Q3 Ended Sep 30, 2014

    VeriSign, Inc. reported third-quarter 2014 revenues of $255.0 million, up 5% from $243.7 million a year earlier, and operating income of $139.5 million, up 5% from $132.7 million. For the nine months ended September 30, 2014, revenues were $754.2 million (up 5%) and operating income was $422.2 million (up 6%). Net income was $95.2 million for the quarter versus $80.9 million, and $289.8 million for the nine months versus $252.3 million. Management attributes revenue growth mainly to a 3% increase in active .com and .net domain names to 130.0 million and higher .net registration fees, while noting that economic conditions and registrar marketing changes have limited domain base growth. Capital allocation was a major focus. The company repurchased 4.2 million shares for $226.3 million in the quarter and 12.7 million shares for $657.9 million year to date. On July 23, 2014, the Board increased the total buyback authorization to $1.0 billion, of which $832.7 million remained available at September 30, 2014. Cash and cash equivalents plus marketable securities totaled $1.47 billion, against $750.0 million of 4.625% senior notes due 2023, $1.25 billion principal of 3.25% subordinated convertible debentures due 2037, and stockholders' deficit of $748.8 million. The company also completed the repatriation of approximately $740.9 million of foreign cash during the second quarter. Key risks highlighted include the introduction of new gTLDs by ICANN, uncertainty over the .com pricing restrictions and the renewal of the .com Registry Agreement, the NTIA's announced intent to transition IANA oversight, and the potential cash settlement obligations on the convertible debentures, which are convertible at holders' option through December 31, 2014. The company also disclosed a $375.3 million income tax benefit from a 2013 worthless stock deduction that remains subject to IRS review.

    Oct 23, 2014
  38. 2014-Q2

    Verisign Quarterly Report for Q2 Ended Jun 30, 2014

    VeriSign, Inc. reported second-quarter 2014 revenues of $250.4 million, up 5% from the prior-year quarter, and operating income of $143.1 million, up 8%. Net income for the quarter was $100.2 million, versus $86.9 million a year earlier, and diluted EPS was $0.71 compared with $0.55. For the six months ended June 30, 2014, revenues were $499.2 million and operating income was $282.7 million, while operating cash flow fell 12% to $262.7 million. The company attributes revenue growth mainly to a 4% increase in active .com and .net domain names, to 128.9 million, and to .net fee increases in July 2013 and February 2014. Management expects revenue to keep rising in fiscal 2014, but notes that registrar marketing changes and economic conditions may limit domain name growth. During the quarter the company completed the repatriation of $740.9 million of cash held by foreign subsidiaries, net of $28.1 million of foreign withholding taxes, which contributed to a 21% effective tax rate for the quarter. Cash and cash equivalents plus marketable securities totaled $1.55 billion at June 30, 2014, while total stockholders' deficit was $632.9 million. The company repurchased 6.0 million shares for $300.0 million in the quarter and, on July 23, 2014, the board approved an additional authorization that brings total available repurchase capacity to $1.0 billion. The filing also notes $1.25 billion of 3.25% subordinated convertible debentures due 2037, which remain convertible through September 30, 2014, and $750.0 million of 4.625% senior notes due 2023.

    Jul 24, 2014
  39. 2014-Q1

    Verisign Quarterly Report for Q1 Ended Mar 31, 2014

    VeriSign, Inc. (VRSN) reported first-quarter 2014 revenues of $248.8 million, up 5% from $236.4 million in the first quarter of 2013, with operating income of $139.6 million, also up 5%. Net income was $94.4 million versus $84.5 million a year earlier, and diluted net income per share was $0.64 compared with $0.52. Growth was driven mainly by a 4% increase in active .com and .net domain names to 128.5 million and by .net fee increases in July 2013 and February 2014. Management expects revenues to keep rising in fiscal 2014 versus 2013, though it notes registrar marketing changes and economic conditions may limit domain name growth. Cash generation was softer. Operating cash flow was $141.6 million, a 6% decline, reflecting higher non-U.S. income tax payments and 2013 bonus payments. The company ended the quarter with $267.1 million in cash and cash equivalents and $1.45 billion in marketable securities. It repurchased 2.4 million shares for $131.7 million under the 2014 Share Buyback Program, leaving $868.3 million available, and stockholders' deficit widened to $457.6 million. Management expects to repatriate approximately $700.0 million to $800.0 million of foreign-held cash in the second quarter of 2014. The filing also highlights risks tied to the .com pricing restrictions and Registry Agreement renewal, the rollout of new gTLDs under ICANN, the NTIA's March 14, 2014 announcement of intent to transition IANA oversight, and the company's $750.0 million of 4.625% Senior Notes and $1.25 billion of 3.25% Subordinated Convertible Debentures, which are convertible through June 30, 2014.

    Apr 24, 2014
  40. 2013-Q3

    Verisign Quarterly Report for Q3 Ended Sep 30, 2013

    VeriSign, Inc. reported third-quarter 2013 revenues of $243.7 million, up 9% from $223.5 million a year earlier, and nine-month revenues of $719.5 million, up 12%. Operating income was $132.7 million for the quarter and $398.1 million for the nine months, increases of 14% and 24% respectively. Net income was $80.9 million for the quarter, or $0.53 per diluted share, compared with $77.9 million, or $0.47, a year earlier. Active .com and .net domain names reached 125.9 million, up 5% year over year, and the company says Registry Services revenue growth was driven by that domain base and by .com and .net registration fee increases. The balance sheet shows $1.8 billion of cash, cash equivalents and marketable securities, against $1.25 billion of 3.25% subordinated convertible debentures due 2037, which are now classified as current because they are convertible at holders' option through December 31, 2013. Stockholders' deficit widened to $(493.8) million from $(9.3) million at year-end 2012, reflecting $797.1 million of share repurchases in the nine months. The company issued $750.0 million of 4.625% senior notes due 2023 in April 2013 and used proceeds to repay its $100.0 million credit facility borrowings and fund buybacks. Management also expects a worthless stock deduction in the fourth quarter of 2013 that could produce an income tax benefit of approximately $300.0 million to $400.0 million, subject to IRS review. The filing also discloses risks tied to ICANN's new gTLD program, which could introduce competition and root-zone stability issues, and to the company's reliance on .com pricing terms and its agreements with ICANN and the Department of Commerce. A shareholder derivative suit over incentive compensation plans is described as moving toward dismissal.

    Oct 24, 2013
  41. 2013-Q2

    Verisign Quarterly Report for Q2 Ended Jun 30, 2013

    VeriSign, Inc. reported a strong second quarter of 2013, with revenues of $239.3 million for the three months ended June 30, 2013, up 12% from $214.1 million a year earlier, and revenues of $475.8 million for the six months, up 13%. Operating income rose to $132.1 million for the quarter and $265.3 million for the six months, increases of 23% and 29% respectively. Net income was $86.9 million for the quarter, or $0.55 per diluted share, compared with $68.5 million, or $0.42 per diluted share, in the prior-year quarter. The company attributes growth largely to a 5% increase in active .com and .net domain names to 124.3 million and to registry fee increases for .com and .net. The balance sheet changed meaningfully in the period. In April 2013 VeriSign issued $750.0 million of 4.625% senior notes due 2023 and used $100.0 million of the proceeds to repay its credit facility. Cash and cash equivalents rose to $578.3 million, and marketable securities totaled $1.42 billion at June 30, 2013. Stockholders' deficit widened to $273.9 million from $9.3 million at year-end 2012, largely reflecting $478.1 million of share repurchases in the six months. The $1.25 billion of 3.25% subordinated convertible debentures became convertible at holders' option through September 30, 2013 because the stock price exceeded the conversion trigger, so they are now classified as current liabilities; management says it intends and has the ability to settle principal in cash. On July 24, 2013, the Board authorized an additional $518.7 million of share repurchases, bringing the total authorization to $1.0 billion under the 2013 Share Buyback Program. Management expects revenue to keep increasing in 2013 as a result of domain growth and the .net fee increase effective July 1, 2013, while interest expense will rise because of the new notes. Google search algorithm changes and the pending introduction of new gTLDs are identified as risks to domain registration growth.

    Jul 25, 2013
  42. 2013-Q1

    Verisign Quarterly Report for Q1 Ended Mar 31, 2013

    VeriSign, Inc. reported first-quarter 2013 revenues of $236.4 million, up 15% from $205.7 million in the first quarter of 2012, driven by a 5% year-over-year increase in active .com and .net domain names to 123.1 million and increases in .com and .net registry fees in July 2010 and January 2012. Operating income rose to $133.3 million, up 35%, and net income was $84.5 million, or $0.52 per diluted share, compared with $68.0 million in the prior-year period. Cash flow from operations was $150.6 million, up 37%. Registry Services generate substantially all revenue, per the filing. Balance sheet items require attention. The 3.25% Subordinated Convertible Debentures ($1.25 billion principal due 2037) became convertible at holders' option through June 30, 2013, because the stock price exceeded the conversion price threshold trigger. As a result, the debt component and related contingent interest derivative, along with a $388.9 million deferred tax liability, were reclassified to current liabilities, producing total current liabilities of $1.71 billion and a total stockholders' deficit of $39.1 million. The company says it intends and has the ability to settle the principal in cash, but it notes it may need additional financing if conversions exceed cash on hand and operating cash flow. After quarter end, on April 16, 2013, VeriSign issued $750.0 million of 4.625% Senior Notes due 2023, using $100.0 million to repay its revolving credit facility and intending the remainder for general corporate purposes, including share repurchases. The company repurchased 3.0 million shares for $132.0 million in the quarter and had $843.6 million remaining under its 2012 Share Buyback Program at March 31, 2013. Cash, cash equivalents and marketable securities totaled $1.56 billion at quarter end. The filing also describes ongoing securities class action litigation (City of Fort Lauderdale General Employees' Retirement System v. VeriSign, Inc.) and a derivative suit (Warhanek v. Bidzos), and it notes that the .com and .net pricing and new gTLD introduction present risks.

    Apr 25, 2013
  43. 2012-Q3

    Verisign Quarterly Report for Q3 Ended Sep 30, 2012

    VeriSign, Inc. reported a 10-Q for the quarter ended September 30, 2012. Revenues were $223.5 million for the three months and $643.4 million for the nine months ended September 30, 2012, each up 13% from the prior-year periods. Operating income was $116.1 million for the quarter and $322.0 million for the nine months, up 30% and 36% respectively. Net income was $77.9 million for the quarter and $214.4 million for the nine months. Cash flow from operations rose to $366.9 million for the nine months, up 73%. The company ended the quarter with $270.5 million in cash and cash equivalents and $1.2 billion in marketable securities, primarily U.S. Treasury bills, against $1.25 billion of 3.25% Convertible Debentures. The most significant development for investors is the .com Registry Agreement renewal. The agreement with ICANN expires November 30, 2012. The company stated that, following communications beginning in October 2012, the Department of Commerce may not complete its review and approve the renewal before expiration, and the DOC together with the Department of Justice is reviewing the agreement's pricing terms. Under the Cooperative Agreement, the DOC must agree to a six-month extension if approval is not given in time, but the company said it cannot estimate any financial effect. Substantially all revenue comes from Registry Services, and the filing states that a refusal to approve the renewal, or limits on pricing, could materially and adversely affect the business. Because the stock price exceeded the conversion trigger in the third quarter, the Convertible Debentures are convertible at holders' option through December 31, 2012 and are classified as current liabilities, contributing to a total stockholders' deficit of $26.6 million at September 30, 2012. The company stated its intent and ability to settle the debenture principal in cash, while noting that it may need additional financing if conversions exceed available cash. Share repurchases totaled $221.0 million for the nine months, with $610.3 million remaining under the 2010 Share Buyback Program.

    Oct 25, 2012
  44. 2012-Q2

    Verisign Quarterly Report for Q2 Ended Jun 30, 2012

    VeriSign, Inc. reported second-quarter 2012 revenues of $214.1 million, up 13% from $189.8 million in the year-earlier quarter, and operating income of $107.0 million, up 30%. For the six months ended June 30, 2012, revenues were $419.9 million, up 13%, and operating income was $205.9 million, up 40%. Net income was $68.5 million for the quarter (diluted EPS of $0.42) versus a net loss of $10.6 million a year earlier, and $136.5 million for the six months. The increase was attributed mainly to higher revenue from .com and .net registry fee increases in July 2010 and January 2012 and an 8% year-over-year rise in active .com and .net domain names, to 118.5 million, along with lower restructuring and general and administrative expenses following the Authentication Services divestiture. Cash flow from operations for the six months was $245.2 million, up 138%, aided by the absence of the $100.0 million contingent interest payment made to Convertible Debenture holders in 2011. Cash and cash equivalents fell to $315.6 million from $1.31 billion at year-end 2011 because the company bought $1.1 billion of marketable securities, mostly U.S. Treasury bills with maturities under one year. The company also repurchased $144.5 million of stock in the quarter-to-date and six-month periods, with $686.9 million remaining under its 2010 buyback program. Stockholders' deficit narrowed to $59.2 million. The filing notes a pending U.S. Department of Commerce review of the .com registry agreement renewal, which runs from December 1, 2012 through November 30, 2018 and was approved by ICANN's board on June 23, 2012. It also discloses that ICANN received 1,930 applications for new gTLDs, that Verisign applied for 14 of them, and that the company faces a derivative lawsuit over shareholder-approved compensation plans, which it intends to defend vigorously.

    Jul 27, 2012
  45. 2012-Q1

    Verisign Quarterly Report for Q1 Ended Mar 31, 2012

    VeriSign, Inc. reported first-quarter 2012 revenues of $205.7 million, up 13% from $181.5 million in the same period of 2011, driven by an 8% year-over-year increase in active .com and .net domain names (116.7 million at March 31, 2012) and registry fee increases in July 2010 and January 2012. Operating income rose to $98.9 million from $65.5 million, and net income was $68.0 million, or $0.42 per diluted share, compared with $40.8 million, or $0.24 per diluted share, a year earlier. Results benefited from lower general and administrative and restructuring expenses following the divestiture of the Authentication Services business. Cash flow from operations was $110.3 million, compared with $90.3 million in the prior-year quarter. The company repurchased 1.8 million shares for $68.4 million and ended the quarter with $1.35 billion in cash and cash equivalents and $32.8 million in marketable securities. Total stockholders' deficit narrowed to $(71.3) million, and the company carried $592.8 million of convertible debentures and $100.0 million of long-term debt. The filing also notes that ICANN posted renewal terms for the .com Registry Agreement on March 27, 2012, that the company applied for 14 new gTLDs and agreed to provide back-end services for approximately 220 others, and that George E. Kilguss, III is scheduled to become Chief Financial Officer effective May 14, 2012. A shareholder derivative complaint (Warhanek v. Bidzos) filed in March 2012 challenges certain incentive compensation plans, and management says it intends to defend the action vigorously.

    Apr 27, 2012
  46. 2011-Q3

    Verisign Quarterly Report for Q3 Ended Sep 30, 2011

    VeriSign, Inc. reported its third-quarter 2011 results in this Form 10-Q, with revenues of $196.97 million for the three months ended September 30, 2011, up 14% from $172.29 million a year earlier, and $568.33 million for the nine months, up 13%. The increase was primarily attributed to an 8% year-over-year rise in active .com and .net domain names, to 111.9 million, and to registry fee increases effective July 2010. Operating income for the quarter was $88.9 million, up 49%, and net income attributable to Verisign stockholders was $58.9 million, or $0.36 per diluted share, versus $784.9 million a year earlier, which included discontinued operations from the sale of the Authentication Services business to Symantec. Nine-month results were weighed down by $100.0 million of contingent interest paid to Convertible Debenture holders after the May 2011 special dividend of $2.75 per share (about $463.5 million). Nine-month net income fell to $89.1 million from $874.4 million, which included a large 2010 divestiture gain. Cash and cash equivalents plus marketable securities totaled $1.23 billion at September 30, 2011, down from $2.06 billion at December 31, 2010. Stockholders' equity moved to a deficit of $166.7 million from equity of $676.4 million. The company repurchased 16.3 million shares for $534.6 million in the nine months, with $831.3 million remaining under its 2010 buyback program. The filing also flags forward-looking items: the company agreed to buy its Reston, Virginia headquarters for $118.0 million, with closing scheduled for November 15, 2011; the .com Registry Agreement expires in 2012; fee increases announced in July 2011 take effect January 15, 2012; and the company disclosed a 2010 corporate network security breach that was not sufficiently escalated to management. Its CEO and CFO positions changed in the third quarter, with an interim CFO serving.

    Oct 28, 2011
  47. 2011-Q2

    Verisign Quarterly Report for Q2 Ended Jun 30, 2011

    VeriSign, Inc. (VRSN) reported results for the three and six months ended June 30, 2011 in this Form 10-Q filed July 29, 2011. Revenues rose to $189.8 million for the quarter and $371.4 million for the six months, each up 13% year over year, driven mainly by an 8% increase in active .com and .net domain names (to 109.9 million) and the July 2010 registry fee increases. Operating income was $82.1 million for the quarter, up 61%, and $147.6 million for the six months, up 41%. However, the company recorded a net loss of $10.6 million for the quarter, because of $100.0 million of contingent interest paid to Convertible Debenture holders after the May 2011 special dividend, which drove interest expense to $111.9 million for the quarter. Capital returns were significant in the period. The company paid a special dividend of $2.75 per share, totaling $463.5 million, in May 2011, and repurchased 8.4 million shares for $299.6 million in the six months under the 2010 Share Buyback Program, leaving $1.1 billion available. Cash and cash equivalents were $1.22 billion and marketable securities were $174.6 million at June 30, 2011, while total stockholders' deficit was $(4.2) million, down from equity of $676.4 million at December 31, 2010. Operating cash flow fell to $103.2 million for the six months from $250.3 million a year earlier, mainly due to the contingent interest payment. The filing also discloses leadership and legal developments. CEO Mark McLaughlin resigned effective August 1, 2011, and the Board elected Jim Bidzos as President and CEO. The company agreed in principle on July 13, 2011 to settle the Herbert lottery-related class action, paying 60% of settlement costs, and has accrued for the expected cost. Management also announced a fee increase for .com registrations to $7.85 and for .net registrations to $5.11, effective January 15, 2012.

    Jul 29, 2011
  48. 2011-Q1

    Verisign Quarterly Report for Q1 Ended Mar 31, 2011

    VeriSign, Inc. reported first-quarter 2011 revenues of $181.5 million, up 12% from $161.6 million a year earlier, driven by a 9% year-over-year increase in active .com and .net domain names (108.0 million at March 31, 2011) and increases in .com and .net registry fees in July 2010. Operating income rose to $65.5 million from $54.1 million, and net income attributable to Verisign stockholders was $40.8 million, compared with $51.4 million in the prior-year period, which included discontinued operations from the Authentication Services business sold to Symantec. Income from continuing operations was $42.3 million versus $30.0 million a year earlier. Diluted earnings per share were $0.24, compared with $0.28 a year earlier. Cash flow and capital return were central this quarter. Operating cash flow was $90.3 million, down from $101.1 million, which the filing attributes mainly to the elimination of cash flows from the divested Authentication Services business. The company repurchased 5.6 million shares for $199.6 million under its 2010 Share Buyback Program, leaving $1.2 billion available. Cash and cash equivalents were $1.44 billion and marketable securities $506.0 million at March 31, 2011. Stockholders' equity fell to $545.3 million from $676.4 million. After quarter end, the Board declared a special dividend of $2.75 per share, totaling about $463.3 million, payable May 18, 2011. Because it is an extraordinary dividend under the Convertible Debentures indenture, contingent interest of $100.0 million will also be paid. The company stated that existing cash and operating cash flows should be sufficient to cover these payments and its debt service for the next 12 months. The filing also flags risks including the expiration of the .net Registry Agreement in June 2011, the .com agreement in 2012, and the ongoing CFIT antitrust litigation.

    Apr 29, 2011
  49. 2010-Q3

    Verisign Quarterly Report for Q3 Ended Sep 30, 2010

    VeriSign, Inc. reported third-quarter 2010 results for the period ended September 30, 2010, following the August 9, 2010 sale of its Authentication Services business to Symantec Corporation for cash consideration of approximately $1.14 billion, net of cash held by transferred subsidiaries of $127.5 million and transaction costs of $10.8 million. The sale produced a gain of $736.5 million, net of tax of $243.8 million, which drove net income attributable to VeriSign stockholders to $784.9 million for the quarter and $871.5 million for the nine months. The Authentication Services business is now reported as discontinued operations, so the continuing business consists of Naming Services (Registry Services and NIA Services) and Other Services (Content Portal Services). On a continuing-operations basis, revenues were $172.6 million for the quarter, up 10% year over year, and $503.8 million for the nine months, up 9%. Income from continuing operations attributable to VeriSign stockholders was $44.8 million for the quarter and $100.8 million for the nine months. The filing attributes revenue growth to a 9% increase in active .com and .net domain names, to 103.5 million, and to registry fee increases effective October 2008 and July 2010. Cash and cash equivalents were $2.06 billion and marketable securities were $488.9 million at September 30, 2010. Operating cash flow for the nine months was $168.5 million, a decrease of 24% year over year. Capital deployment was a major focus. The Board authorized a 2010 Share Buyback Program of up to approximately $1.1 billion, bringing total repurchase capacity to $1.5 billion, of which $1.38 billion remained available at quarter-end. The company repurchased 15.3 million shares for $423.5 million during the nine months. The company also notified its lender on October 27, 2010 that it intends to terminate its $500.0 million credit facility, effective November 3, 2010, and it signed a 15-year-and-5-month lease for a Reston, Virginia office building. The company is also transitioning corporate functions from Mountain View, California to Dulles, Virginia under an expanded restructuring plan, with $22.3 million in estimated severance costs.

    Oct 29, 2010
  50. 2010-Q2

    Verisign Quarterly Report for Q2 Ended Jun 30, 2010

    VeriSign, Inc. reported second-quarter 2010 results in this Form 10-Q, with revenues of $168.7 million for the three months ended June 30, 2010, up from $154.3 million a year earlier, and $331.2 million for the six months, versus $304.0 million. Income from continuing operations attributable to VeriSign stockholders was $26.3 million for the quarter and $56.0 million for the six months. Net income attributable to VeriSign stockholders was $35.2 million for the quarter and $86.6 million for the six months. Cash flow from operations for the six months was $250.3 million, and the company held $862.9 million in cash and cash equivalents and $474.4 million in marketable securities at June 30, 2010. The central event is the May 19, 2010 agreement to sell the Authentication Services business to Symantec Corporation for approximately $1.28 billion in cash. That business is presented as discontinued operations and its assets and liabilities are classified as held for sale. The remaining company consists of Naming Services, which includes Registry Services for .com and .net, and a small Other Services segment. The filing states that Naming Services will generate substantially all revenue after the sale, and that the company expects to recognize further restructuring charges through fiscal 2011 as corporate functions move from Mountain View, California to Dulles, Virginia. Capital return was significant during the period. The company repurchased 10.2 million shares for $277.9 million in the six months, and on July 27, 2010 the Board increased the buyback authorization to a total of $1.5 billion. The filing also reports a .com registry fee increase of 7% and a .net fee increase of 10% effective July 1, 2010, and 101.5 million active .com and .net domain names as of June 30, 2010, up 9% year over year.

    Aug 3, 2010