BANGALORE, INDIA: VeriSign, provider of Internet infrastructure for the networked world, has reported financial results for the fourth quarter and fiscal year ended December 31, 2007.
The company reported total revenue of $386 million for the fourth quarter of 2007. On a GAAP basis, VeriSign reported a net loss of $196 million for the fourth quarter of 2007 and a net loss per share of $0.88. These results include our best estimate of a non-cash impairment charge of $210 million associated with the digital content and messaging business.
On a non-GAAP basis (which excludes the items described below), VeriSign reported net income of $70 million for the fourth quarter of 2007 and earnings per share of $0.30 per fully-diluted share. A table reconciling the GAAP to non-GAAP results reported above is appended to this release.
"VeriSign's core businesses and our strong operational execution continue to yield solid growth," said Bill Roper, president and chief executive officer of VeriSign. "Our fourth quarter results support our decision to focus on our core strengths in Internet infrastructure. We are on track to deliver on the business strategy we outlined at our analyst day late last year."
2007 Financial Results
For the year ended December 31, 2007, VeriSign reported total revenue of $1.5 billion, excluding $12 million from discontinued operations.
On a GAAP basis, VeriSign reported a net loss of $120 million for 2007 and loss per share of $0.50.
On a non-GAAP basis (which excludes the items described below), VeriSign reported net income of $251 million for 2007 and earnings per share of $1.03 per fully-diluted share.
"We met our financial goals for the fourth quarter, closing out a solid year as non-GAAP operating margin excluding Jamba improved over 650 basis points from year ago results," said Bert Clement, chief financial officer of VeriSign. "The combination of a strong business model and operational rigor resulted in healthy operating cash flow of over $450 million and notable improvements in our balance sheet as we ended the year with strong cash and record deferred revenue."
Non-GAAP results exclude the following items which are included under GAAP: amortization of intangible assets, impairment of goodwill, acquired in-process R&D, stock-based compensation, former CEO severance, non-recurring costs and settlements, restructuring, impairments and other charges (reversals), net gain or loss on the sale or impairment of investments, gain or loss on the sale of a subsidiary, unrealized gain on Jamba JV call option, realized and unrealized gains and losses on embedded derivative, and stock option investigation costs.