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Verisign Reports: Revenue up 4.9%: 133.5 Million Registered .Com/.Net Domains

Posted on the 23 July 2015 by Worldwide @thedomains
 VeriSign, Inc. (VRSN),  the operator of the .com and .net registry reported financial results for the second quarter of 2015 reporting revenue of $263 million for the second quarter of 2015, up 4.9% from the same quarter in 2014. Verisign reported net income of $93 million and diluted earnings per share of $0.70 for the second quarter of 2015, compared to net income of $100 million and diluted EPS of $0.71 in the same quarter in 2014. The operating margin was 56.7% for the second quarter of 2015 compared to 57.2% for the same quarter in 2014.

Financial Highlights

  • Verisign ended the second quarter with cash, cash equivalents and marketable securities of $1.9 billion, an increase of $460 million as compared with year-end 2014.
  • Cash flow from operations was $175 million for the second quarter of 2015, compared with $121 million for the same quarter in 2014.
  • Deferred revenues on June 30, 2015, totaled $932 million, an increase of $41 million from year-end 2014.
  • Capital expenditures were $9 million in the second quarter of 2015.
  • During the second quarter, Verisign repurchased 2.5 million shares of its common stock for $156 million. At June 30, 2015, $761 million remained available and authorized under the current share repurchase program which has no expiration.
  • For purposes of calculating diluted EPS, the second quarter diluted share count included 17 million shares related to subordinated convertible debentures, compared with 11.3 million shares in the same quarter in 2014. These represent diluted shares and not shares that have been issued.

Business Highlights

  • Verisign Registry Services added 0.52 million net new names during the second quarter, ending with 133.5 million .com and .net domain names in the domain name base, which represents a 3.1 percent increase over the base at the end of the second quarter in 2014, as calculated including domain names on hold for both periods.
  • In the second quarter, Verisign processed 8.7 million new domain name registrations for .com and .net, as compared to 8.5 million for the same period in 2014.
  • The final .com and .net renewal rate for the first quarter of 2015 was 73.4% compared with 72.6% for the same quarter in 2014. Renewal rates are not fully measurable until 45 days after the end of the quarter.
  • Verisign announces an increase in the annual fee for a .net domain name registration from $6.79 to $7.46, effective Feb. 1, 2016, per its agreement with the Internet Corporation for Assigned Names and Numbers. (ICANN).

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