VeriSign Announces Preliminary Q3 2005 Financial Results

VeriSign, Inc. (www.verisign.com), a provider of intelligent infrastructure services for the Internet and telecommunications networks, today announced its preliminary results for the third quarter ending September 30, 2005.

Based on preliminary information available at this time, VeriSign expects total revenue for the quarter to be approximately $410 million, as compared to previous guidance of $435-440 million.

These non-GAAP results exclude the following items, which are included under GAAP: amortization of intangible assets related to acquisitions, in-process research and development, the net gain or loss on the sale of investments, restructuring and other recoveries/charges, and stock-based compensation charges related to acquisitions. 

“VeriSign experienced mixed results in the third quarter as the strength in our Internet and core communications businesses was not enough to offset a revenue shortfall in the mobile content area due to higher than expected seasonal churn and further developments in industry requirements and guidelines for the marketing of mobile content in Europe,” said Stratton Sclavos, Chairman and Chief Executive Officer of VeriSign.

Performance in the Content Services business is expected to be below management’s expectations for the third quarter while performance in the Internet Services Group, as well as the Communications and Commerce groups, is anticipated to be in-line or above previous guidance.