VeriSign, Inc. (NASDAQ: VRSN), today reported financial results for the first quarter ended March 31, 2013 reported revenue of $236 million for the first quarter of 2013, up 15% from the same quarter in 2012.
Verisign reported net income of $85 million and diluted earnings per share (EPS) of $0.52 for the first quarter of 2013, compared to net income of $68 million and diluted EPS of $0.42 in the same quarter in 2012.
The operating margin was 56.4 percent for the first quarter of 2013 compared to 48.1 percent for the same quarter in 2012.
And of course that is without the guaranteed rate increases the Verisign enjoyed for the 6 year contract period that ended in 2012.
Share of Verisign which rose 1.5% in its regular session are up another 1.5% in after hours trading, at $46.80 after opening the day at $45.49
Verisign ended the first quarter with Cash, Cash Equivalents, Marketable Securities and Restricted Cash of $1.57 billion, an increase of $9 million from year-end 2012.
- Cash flow from operations was $151 million for the first quarter compared with $110 million for the same quarter in 2012.
- Deferred revenues on March 31, 2013, totaled $847 million, an increase of $34 million from year-end 2012.
- Capital expenditures were $17 million in the first quarter of 2013.
- During the first quarter, Verisign repurchased approximately 3.0 million shares of its common stock for a cost of approximately $132 million. At March 31, 2013, approximately $844 million remained available and authorized under the current share repurchase program.
- For purposes of calculating diluted EPS, the first quarter diluted share count included 7.9 million shares related to the subordinated convertible debentures, compared with 2.5 million shares in the same quarter in 2012. These represent diluted shares and not shares that have been issued.
- Due to the stock price exceeding the subordinated convertible debentures trigger price during the first quarter of 2013, holders have the option to convert the debentures into common stock during the second quarter of 2013. Consequently, the debt component of the subordinated convertible debentures, the related embedded derivative, and deferred tax liability were reclassified from long-term liabilities to current liabilities, while the associated unamortized debt issuance costs were reclassified from long-term assets to current assets, as of March 31, 2013.
Business Highlights
- Verisign Registry Services added 1.99 million net new names and ended the first quarter with 123.1 million active domain names in the zone for .com and .net, representing a 5.5 percent increase year over year. …
