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VeriSign (VRSN) Q2-2010 Earnings Notes

August 2nd, 2010 No comments

VeriSign reported Q2 EPS ex-items of 24c and revenue of $169 million from continuing operations. Analysts were expecting EPS of 24c and revenue of $166.5 million.

On the conference call the company gave 2010 guidance of 8-11% naming services growth, revenue of $665-685 million, non-GAAP gross margin of 77-80%, and non-GAAP operation margin of 40-41%. The street expected 2010 revenue of $769.7 million, but it is likely the number is not comparable due to the recent divestiture of the authentication business to Symantec for $1.28 billion in cash.

On July 27th, the Board authorized a share buy-back of up to $1.5 billion. The company bought $230 million of stock during the quarter. The company also instituted a 7% price increase on July 1st ($6.86 to $7.34 for .coms). 7.9 million new domain names were registered in Q2 representing growth of 13% y/y. The average duration of a registration is 1.17 years.

The stock traded up 2.86% to $28.80 in after-hours trading.

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