Verisign Reveals Financial Growth In 2011
Considered a leader in providing Internet infrastructure services for networks, Verisign Incorporated (VRSN) showed its financial performance for the fourth quarter and full year ending December 31, 2011. GAAP financials for the company and its subsidiaries made revenues amounting to $204 million for the last quarter of 2011, which is an increase of 3 percent from the third quarter and 14 percent higher than the same quarter of 2010.
The company also bared a net income of $54 million and diluted earnings per share or EPS of $0.34 for the last quarter of 2011. In 2010, Verisign had a net loss of $41 million, translating to a loss of $0.23 per share. The financials of the 2011 fourth quarter showing included a pre-tax non-operating accrued expense of $4 million, with operating margin for the fourth quarter of 2011 at 46 percent compared to 38 percent in the same quarter of 2010.
Jim Bidzos, Verisign Chairman and CEO, said that the year saw strong growth in global Internet adoption, which consequently increased the demand for its DNS infrastructure, including an elevated need for network security services, which the company readily delivered. Bidzos also said that the company was able to simultaneously invest in strengthening its infrastructure and manage its growth potential.
Technical analysis of the stock shows that it is approaching a critical level. VRSN is currently priced around $, which is close to the $40 resistance level, which the stock is trying to breach since 2007. The short-term support lies at $32.