Revenue from internet infrastructure and identity services grew 16%
Internet infrastructure services provider VeriSign has reported net income of $39m for the fourth quarter 2008, against a loss of $219m in the year-ago quarter, on revenue up 11% at $247m. It said the results were impacted by a $91m non-cash impairment charge, $32m loss from discontinued operations, and restructuring charges of $12m.
Operating income plummeted to $9m from $207m in the same quarter last year. Diluted EPS was $0.20 compared to a diluted net loss per share of $0.98 in the year-ago quarter. Cash and cash equivalents at the end of the period was $791m.
Revenue from internet infrastructure and identity services grew 16% to $245m. Naming services showed a 12% increase in active domain names to approximately 90.4 million, while SSL Services showed a 13% increase in installed base at 1.12 million.
For fiscal 2008, the net loss widened to $240m compared to a loss of $152m last year, on revenue up 14% at $962m. Operating income was $71m compared to a loss of $246m last year. Diluted net loss per share was $1.20 compared to $0.64 last year. The company generated approximately $475m in cash flow from operations and ended the year with nearly $800m in cash and equivalents.
Jim Bidzos, chairman and interim chief executive at VeriSign, said: VeriSign again demonstrated solid performance in extremely difficult economic conditions, with 16% year-over-year revenue growth and greater than 35% non-GAAP operating margin for the fourth quarter. We believe our growth and financial performance reflect that our strategy of divesting non-core businesses and focusing on our strong core units is the right one. We have sold seven of 12 non-core businesses since late 2007, and remain focused on completing sales of the remaining larger businesses.