Verisign posts 13% revenue growth in 2011 at $772 million

By Telecom Lead Team: Verisign, a provider of Internet
infrastructure services for the networked world, has reported revenue of $772
million in 2011, up 13 percent from $681 million in 2010.


has reported revenue of $204 million for the fourth quarter of 2011, up 3
percent from the prior quarter and up 14 percent from the same quarter in 2010.


Verisign reported net
income of $143 million and diluted EPS of $0.86. The operating margin for 2011
was 42.7 percent compared to 34.1 percent in 2010.


“In a year that
saw strong growth in global internet adoption, increased demand on our DNS
infrastructure, and a growing need for network security services, Verisign
delivered security and stability. We were able to both invest in strengthening
our infrastructure, and manage our business for growth,” said Jim Bidzos,
chairman and chief executive officer of Verisign.


The company said its
registry services ended the quarter with 113.8 million active domain names
ending in .com and .net, a gain of 8 percent. It added 7.9 million new
domain-name registrations, a 4 percent increase.


“In 2011,
operating discipline, focus, and the completion of our restructuring yielded
solid results for the business, and we completed the return of divestiture
proceeds to our shareholders,” said John Calys, interim chief financial
officer of Verisign.


Cash flow from
operations on a consolidated basis was $124 million for the fourth quarter and
$336 million for the full year. Excess tax benefits of $13 million for the full
year that are associated with stock-based compensation were classified as
financing cash flows.


Few months back, Verisign
entered into a new $200 million unsecured revolving credit facility and
borrowed $100 million of this facility in part to finance the purchase of the
Reston building.


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