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     134  0 Kommentare Verisign Reports Third Quarter 2020 Results

    VeriSign, Inc. (NASDAQ: VRSN), a global provider of domain name registry services and internet infrastructure, today reported financial results for the third quarter of 2020.

    VeriSign, Inc. and its subsidiaries (“Verisign”) reported revenue of $318 million for the third quarter of 2020, up 3.1 percent from the same quarter in 2019. Verisign reported net income of $171 million and diluted earnings per share (diluted “EPS”) of $1.49 for the third quarter of 2020, compared to net income of $154 million and diluted EPS of $1.30 for the same quarter in 2019. The operating margin was 65.0 percent for the third quarter of 2020 compared to 66.7 percent for the same quarter in 2019.

    Net income for the third quarter of 2020 included the recognition of $24 million of previously unrecognized income tax benefits. This resulted from remeasurement of Verisign’s accrual for uncertain tax positions based on IRS written confirmation indicating no examination adjustment would be proposed related to certain matters reviewed as part of its audit of federal income tax returns for 2010 through 2014. Notwithstanding this written confirmation, Verisign’s U.S. federal income tax returns for those years remain under examination by the IRS. This income tax benefit increased diluted EPS by $0.21.

    “Our third quarter results reflect our ongoing discipline in execution of our mission. We are acutely aware of the extent to which people rely on our critical internet infrastructure as the COVID-19 pandemic continues, and we remain focused on our mission to help keep the world connected online, reliably and securely,” said Jim Bidzos, Executive Chairman and Chief Executive Officer.

    Financial Highlights

    • Verisign ended the third quarter of 2020 with cash, cash equivalents and marketable securities of $1.15 billion, a decrease of $68 million from the end of 2019.
    • Cash flows from operating activities were $140 million for the third quarter of 2020, compared to $208 million for the same quarter in 2019.
    • Deferred revenues as of Sept. 30, 2020 totaled $1.06 billion, an increase of $28 million from the end of 2019.
    • During the third quarter of 2020, Verisign repurchased 0.8 million shares of its common stock for an aggregate cost of $170 million. As of Sept. 30, 2020, there was $506 million remaining for future share repurchases under the share repurchase program which has no expiration date.

    Business Highlights

    • Verisign ended the third quarter of 2020 with 163.7 million .com and .net domain name registrations in the domain name base, a 4.0 percent increase from the end of the third quarter of 2019, and a net increase of 1.65 million during the third quarter of 2020.
    • During the third quarter of 2020, Verisign processed 10.9 million new domain name registrations for .com and .net, compared to 9.9 million for the same quarter in 2019.
    • The final .com and .net renewal rate for the second quarter of 2020 was 72.8 percent compared to 74.2 percent for the same quarter in 2019. Renewal rates are not fully measurable until 45 days after the end of the quarter.

    Today’s Conference Call

    Verisign will host a live conference call today at 4:30 p.m. (EDT) to review the third quarter 2020 results. The call will be accessible by direct dial at (888) 676-VRSN (U.S.) or (786) 789-4776 (international), conference ID: Verisign. A listen-only live web cast of the conference call and accompanying slide presentation will also be available at https://investor.Verisign.com. An audio archive of the call will be available at https://investor.Verisign.com/events.cfm. This news release and the financial information discussed on today’s conference call are available at https://investor.Verisign.com.

    About Verisign

    Verisign, a global provider of domain name registry services and internet infrastructure, enables internet navigation for many of the world’s most recognized domain names. Verisign enables the security, stability, and resiliency of key internet infrastructure and services, including providing root zone maintainer services, operating two of the 13 global internet root servers, and providing registration services and authoritative resolution for the .com and .net top-level domains, which support the majority of global e-commerce. To learn more about what it means to be Powered by Verisign, please visit Verisign.com.

    VRSNF

    Statements in this announcement other than historical data and information constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended. These statements involve risks and uncertainties that could cause our actual results to differ materially from those stated or implied by such forward-looking statements. The potential risks and uncertainties include, among others, risks arising from the effects of the COVID-19 pandemic; risks arising from the agreements governing our business; new or existing governmental laws and regulations in the U.S. or other applicable foreign jurisdictions; system interruptions, security breaches, attacks on the internet by hackers, viruses, or intentional acts of vandalism; the uncertainty of the impact of changes to the multi-stakeholder model of internet governance; risks arising from our operation of two root zone servers and our performance of the Root Zone Maintainer functions; changes in internet practices and behavior and the adoption of substitute technologies; the success or failure of the evolution of our markets; the highly competitive business environment in which we operate; whether we can maintain strong relationships with registrars and their resellers to maintain their marketing focus on our products and services; the possibility of system interruptions or failures; challenging global economic conditions; economic, legal and political risk associated with our international operations; our ability to protect and enforce our rights to our intellectual property and ensure that we do not infringe on others’ intellectual property; the outcome of legal or other challenges resulting from our activities or the activities of registrars or registrants, or litigation generally; the impact of our new strategic initiatives, including our IDN gTLDs; whether we can retain and motivate our senior management and key employees; and the impact of unfavorable tax rules and regulations. More information about potential factors that could affect our business and financial results is included in our filings with the SEC, including in our Annual Report on Form 10-K for the year ended Dec. 31, 2019, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Verisign undertakes no obligation to update any of the forward-looking statements after the date of this announcement.

    2020 VeriSign, Inc. All rights reserved. VERISIGN, the VERISIGN logo, and other trademarks, service marks, and designs are registered or unregistered trademarks of VeriSign, Inc. and its subsidiaries in the United States and in foreign countries. All other trademarks are property of their respective owners.

    VERISIGN, INC.

    CONDENSED CONSOLIDATED BALANCE SHEETS

    (In thousands, except par value)

    (Unaudited)

     

    September 30,
    2020

     

    December 31,
    2019

    ASSETS

     

     

     

    Current assets:

     

     

     

    Cash and cash equivalents

    $

    145,701

     

     

     

    $

    508,196

     

     

    Marketable securities

    1,004,658

     

     

     

    709,863

     

     

    Other current assets

    55,767

     

     

     

    60,530

     

     

    Total current assets

    1,206,126

     

     

     

    1,278,589

     

     

    Property and equipment, net

    248,587

     

     

     

    250,283

     

     

    Goodwill

    52,527

     

     

     

    52,527

     

     

    Deferred tax assets

    76,903

     

     

     

    87,798

     

     

    Deposits to acquire intangible assets

    145,000

     

     

     

    145,000

     

     

    Other long-term assets

    35,163

     

     

     

    39,812

     

     

    Total long-term assets

    558,180

     

     

     

    575,420

     

     

    Total assets

    $

    1,764,306

     

     

     

    $

    1,854,009

     

     

    LIABILITIES AND STOCKHOLDERS’ DEFICIT

     

     

     

    Current liabilities:

     

     

     

    Accounts payable and accrued liabilities

    $

    198,342

     

     

     

    $

    209,988

     

     

    Deferred revenues

    779,666

     

     

     

    755,178

     

     

    Total current liabilities

    978,008

     

     

     

    965,166

     

     

    Long-term deferred revenues

    281,887

     

     

     

    278,702

     

     

    Senior notes

    1,789,453

     

     

     

    1,787,565

     

     

    Long-term tax and other liabilities

    101,206

     

     

     

    312,676

     

     

    Total long-term liabilities

    2,172,546

     

     

     

    2,378,943

     

     

    Total liabilities

    3,150,554

     

     

     

    3,344,109

     

     

    Commitments and contingencies

     

     

     

    Stockholders’ deficit:

     

     

     

    Preferred stock—par value $.001 per share; Authorized shares: 5,000; Issued and outstanding shares: none

     

     

     

     

     

    Common stock and additional paid-in capital—par value $.001 per share; Authorized shares: 1,000,000; Issued shares: 353,730 at September 30, 2020 and 353,157 at December 31, 2019; Outstanding shares: 114,262 at September 30, 2020 and 116,715 at December 31, 2019

    14,436,409

     

     

     

    14,990,011

     

     

    Accumulated deficit

    (15,819,916

    )

     

     

    (16,477,490

    )

     

    Accumulated other comprehensive loss

    (2,741

    )

     

     

    (2,621

    )

     

    Total stockholders’ deficit

    (1,386,248

    )

     

     

    (1,490,100

    )

     

    Total liabilities and stockholders’ deficit

    $

    1,764,306

     

     

     

    $

    1,854,009

     

     

    VERISIGN, INC.

    CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

    (In thousands, except per share data)

    (Unaudited)

     

    Three Months Ended
    September 30,

     

    Nine Months Ended
    September 30,

     

    2020

     

     

    2019

     

     

    2020

     

     

    2019

     

    Revenues

    $

    317,879

     

     

     

    $

    308,421

     

     

     

    $

    944,768

     

     

     

    $

    921,118

     

     

    Costs and expenses:

     

     

     

     

     

     

     

    Cost of revenues

    45,024

     

     

     

    44,443

     

     

     

    134,205

     

     

     

    134,013

     

     

    Sales and marketing

    8,389

     

     

     

    9,857

     

     

     

    23,883

     

     

     

    32,775

     

     

    Research and development

    19,708

     

     

     

    14,619

     

     

     

    55,268

     

     

     

    45,704

     

     

    General and administrative

    38,109

     

     

     

    33,886

     

     

     

    111,719

     

     

     

    101,065

     

     

    Total costs and expenses

    111,230

     

     

     

    102,805

     

     

     

    325,075

     

     

     

    313,557

     

     

    Operating income

    206,649

     

     

     

    205,616

     

     

     

    619,693

     

     

     

    607,561

     

     

    Interest expense

    (22,537

    )

     

     

    (22,633

    )

     

     

    (67,607

    )

     

     

    (67,899

    )

     

    Non-operating income, net

    775

     

     

     

    10,498

     

     

     

    15,262

     

     

     

    34,137

     

     

    Income before income taxes

    184,887

     

     

     

    193,481

     

     

     

    567,348

     

     

     

    573,799

     

     

    Income tax (expense) benefit

    (13,908

    )

     

     

    (39,568

    )

     

     

    90,226

     

     

     

    (109,825

    )

     

    Net income

    170,979

     

     

     

    153,913

     

     

     

    657,574

     

     

     

    463,974

     

     

    Other comprehensive (loss) income

    (383

    )

     

     

    308

     

     

     

    (120

    )

     

     

    392

     

     

    Comprehensive income

    $

    170,596

     

     

     

    $

    154,221

     

     

     

    $

    657,454

     

     

     

    $

    464,366

     

     

     

     

     

     

     

     

     

     

    Earnings per share:

     

     

     

     

     

     

     

    Basic

    $

    1.49

     

     

     

    $

    1.30

     

     

     

    $

    5.70

     

     

     

    $

    3.90

     

     

    Diluted

    $

    1.49

     

     

     

    $

    1.30

     

     

     

    $

    5.68

     

     

     

    $

    3.89

     

     

    Shares used to compute earnings per share

     

     

     

     

     

     

     

    Basic

    114,655

     

     

     

    118,194

     

     

     

    115,456

     

     

     

    118,966

     

     

    Diluted

    114,831

     

     

     

    118,569

     

     

     

    115,699

     

     

     

    119,410

     

     

    VERISIGN, INC.

    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

    (In thousands)

    (Unaudited)

     

    Nine Months Ended
    September 30,

     

    2020

     

    2019

    Cash flows from operating activities:

     

     

     

    Net income

    $

    657,574

     

     

     

    $

    463,974

     

     

    Adjustments to reconcile net income to net cash provided by operating activities:

     

     

     

    Depreciation of property and equipment

    34,463

     

     

     

    34,327

     

     

    Stock-based compensation

    36,106

     

     

     

    38,237

     

     

    Amortization of discount on investments in debt securities

    (5,844

    )

     

     

    (10,271

    )

     

    Other, net

    (2,638

    )

     

     

    2,126

     

     

    Changes in operating assets and liabilities:

     

     

     

    Other assets

    (11,107

    )

     

     

    (12,123

    )

     

    Accounts payable and accrued liabilities

    (5,912

    )

     

     

    (7,110

    )

     

    Deferred revenues

    27,673

     

     

     

    24,563

     

     

    Net deferred income taxes and other long-term tax liabilities

    (195,353

    )

     

     

    26,571

     

     

    Net cash provided by operating activities

    534,962

     

     

     

    560,294

     

     

    Cash flows from investing activities:

     

     

     

    Proceeds from maturities and sales of marketable securities

    1,804,541

     

     

     

    1,523,862

     

     

    Purchases of marketable securities

    (2,093,437

    )

     

     

    (1,721,661

    )

     

    Purchases of property and equipment

    (36,933

    )

     

     

    (31,498

    )

     

    Proceeds received (payments made) related to sale of business

    20,009

     

     

     

    (8,530

    )

     

    Net cash used in investing activities

    (305,820

    )

     

     

    (237,827

    )

     

    Cash flows from financing activities:

     

     

     

    Repurchases of common stock

    (603,705

    )

     

     

    (583,485

    )

     

    Proceeds from employee stock purchase plan

    12,577

     

     

     

    13,152

     

     

    Net cash used in financing activities

    (591,128

    )

     

     

    (570,333

    )

     

    Effect of exchange rate changes on cash, cash equivalents, and restricted cash

    (506

    )

     

     

    (208

    )

     

    Net decrease in cash, cash equivalents, and restricted cash

    (362,492

    )

     

     

    (248,074

    )

     

    Cash, cash equivalents, and restricted cash at beginning of period

    517,601

     

     

     

    366,753

     

     

    Cash, cash equivalents, and restricted cash at end of period

    $

    155,109

     

     

     

    $

    118,679

     

     

    Supplemental cash flow disclosures:

     

     

     

    Cash paid for interest

    $

    56,860

     

     

     

    $

    57,074

     

     

    Cash paid for income taxes, net of refunds received

    $

    105,258

     

     

     

    $

    75,197

     

     

     




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    Verisign Reports Third Quarter 2020 Results VeriSign, Inc. (NASDAQ: VRSN), a global provider of domain name registry services and internet infrastructure, today reported financial results for the third quarter of 2020. VeriSign, Inc. and its subsidiaries (“Verisign”) reported revenue of $318 …