VeriSign 1Q profit sinks 21 percent, weighed down by stock options expenses, other charges

VeriSign 1Q profit falls 21 percent on charges

MOUNTAIN VIEW, Calif. — VeriSign Inc., a technology company that helps route users securely to Web sites and manages domain name registrations, said Wednesday that charges helped drag its first-quarter profit down 21 percent.

Earnings for the January-March quarter dropped to $51.4 million, or 28 cents per share, from $65 million, or 34 cents per share in the same period last year. Excluding stock options charges and other items, VeriSign said it earned 37 cents per share in the quarter — above the 35 cents that analysts surveyed by Thomson Reuters were expecting, on average.

Revenue edged up 4 percent to $264.4 million from $253.6 million in the year-ago quarter, shy of the $265.6 million Wall Street was expecting.

VeriSign said revenue from its naming services business rose 9 percent to $162 million as an improving economy increased demand for domain names. Its authentication services business slipped 2 percent to $102 million.

Shares of VeriSign dipped 82 cents to $26.06 in after-hours trading. The stock had fallen 23 cents to close regular trading at $26.88 before the company reported quarterly results.