Tag Archives: .NET

Germany Leads With Most .EU Registrations

Germany has by far the most registrations of .eu domain names with close to 1.127 million followed by the Netherlands with around 489,000 and then France and the United Kingdom with 344,000 and 328,000 respectively according to the latest EURid Quarterly Progress Report for the third quarter of 2013.The report also shows that during the third quarter, the total number of .eu registrations increased in 16 of the 28 EU Member States. Ireland, Portugal, Estonia, Malta and Latvia all saw growth of more than two percent. Renewal rates stayed strong during Q3 at an average of 80 percent.The quarter also saw the number of .eu registrations decrease by 3,051 domain names, a net decrease of 0.1 percent, to 3.7 million. The total number of .eu domain name registered at the end of Q3 represented an increase of 0.9 percent, or 34,749 registrations, when compared with the total number at the end of Q3 2012.Among the world’s TLDs, .eu was the eleventh largest at the end of the quarter. The largest was .com with 110.6 million registrations followed by .tk (Tokelau – 19.8m), .de (Germany – 15.6m), .net (15.1m), .uk (United Kingdom – 10.6m), .org (10.4m), .cn (China – 7.8m), .info (6.1m), .nl (Netherlands – 5.3m), .ru (Russia – 4.8m) and then .eu followed by .br (Brazil – 3.3m).In terms of density it is a different story with the Netherlands leading with 29.3 .eu domains registered per thousand people. The Netherlands also has one of the highest ccTLD domains registered per thousand people with 317.4. On .eu density, the only other countries with more than 20 .eu domains registered per thousand were Luxembourg (27.8) and Malta (25.7) while Cyprus, Austria, Czech Republic, Germany, Estonia and Belgium all have more than ten.There were also a number of developments in the quarter, the most significant being the certification for the ISO 27001 security standard following an audit by the British Standards Institution on 24 September 2013ISO 27001 is a standard designed and developed to help businesses manage their security. It provides requirements for establishing, implementing, maintaining and continuously improving an Information Security Management System (ISMS) in the framework of general company risks. It includes people, processes and IT systems by applying a risk management process.”EURid decided to adopt this standard to show our registrars, registrants and the world that information security is a key asset to us,” commented EURid General Manager Marc Van Wesemael. “Achieving certification is also another way in which we can improve the quality of the .eu brand.”The EURid Quarterly Progress Report for the third quarter of 2013 is available for download from www.eurid.eu/en/about-us/publications.

.ORG Registrations Increase By 13.6% In First Half 2013

PIR .ORG logoNew .ORG registrations increased by 13.6 percent in the first half of 2013, the latest “The Dashboard” from the .org registry reports.

The twice yearly report covers the period January to June 2013 and shows .org reached 10.3 million domains under management, a net gain of 206,170 new DUM for the first half of 2013 and an increase of 86.8 percent since 2007.

The increase in registrations was pushed by strong growth in key international markets, specifically in India, who jumped into the top ten market for .org registrations for the first time. But over half (58%) of all domain names are registered in the United States (5.961m) while Germany is second with five percent (503,160) registrations.

Overall, .com remains the world’s largest TLD with over 110 million domains under management, followed by .tk (Tokelau – but whose numbers are hard to come by), .de (Germany – 15.5m), .net (15.1m), .uk (United Kingdom – 10.5m), .org, .cn (China – 7.8m), .info (6.2m), .nl (Netheralnds – 5.3m) and rounding out the ten largest TLDs, .ru (Russia – 4.8m).

The registry has also been successful with their push into new gTLDS, passing ICANN’s initial evaluation for management of six of them including .NGO, .ONG and four internationalised domain names (IDNs).

Additionally, over the past year, Public Interest Registry conducted a comprehensive international research study on the overall awareness of the .org and .ngo/.ong TLDs. This study was conducted in key markets including the United States, United Kingdom, Germany, France, Brazil and India.

The research found that in India, .org has surged as a TLD in the past four years with domains under management jumping from just 91,000 to nearly 150,000, a 60 percent increase. While other markets also showed steady growth for .org, there were a few notable misconceptions about the top-level domain as well as a lack of familiarity in select markets. For example, in Brazil, 66 percent of respondents are incorrectly under the assumption that there is certain criterion that must be met in order to purchase a .org domain.

“While we find the steady growth of .ORG in international markets promising, it’s clear that more education needs to be done for both the .ORG and .NGO/.ONG domains,” said Brian Cute, CEO of Public Interest Registry. “This research has been highly beneficial in guiding Public Interest Registry in certain markets. It has enabled us to better see where we need to focus our time and efforts over the next few years to grow .ORG and launch the new .NGO/.ONG domains.”

The full report is available to download from:
pir.org/pdf/dashboard_1H_2013.pdf

.NET Hits 15 Million Registrations

This week .net hit the 15 million registrations mark to become the fourth TLD to do so behind the behometh, .com followed by .tk and .de.Way out in the lead is .com with around 110 million domains under management. Second is .tk (Tokelau) with well over 15 million registrations, although actual numbers are hard to come by. Third is .de (Germany) with 15.5 million registrations then .net.Following is .cn (China – 13.4m), .uk (United Kingdom – 10.5m), .org (10.3m), .info (6.3m), .nl (Netherlands – 5.3m) and .ru (Russian Federation – 4.7m).To celebrate the milestone, Verisign have published 15 facts, which is published below:15 Facts About .net to Celebrate 15 Million Registrations
Recently, .net hit a major milestone when its zone surpassed 15 million .net domains registered globally, making it one of the most popular domain extensions on the Internet today. Supported by the same infrastructure and expertise that has powered .com for more than 15 years, .net is recognized around the world as an established and credible place to interact online. To mark this momentous occasion, we pulled together 15 facts about .net. How many .net facts do you already know?15 Facts about .net:

  • Almost 139,000 domains registered in other top-level domains (TLDs) immediately forward to the same name, but as a .net site.
  • The first domain name to ever exist was a .net. While the first domain name to be registered was the now famous Symbolics.com, it is a lesser known fact that the very first domain name ever to exist was Nordu.net. Nordu.net was created by the registry with the same name as the first Internet rootserver (nic.nordu.net). Symbolics.com later went on to be the first domain name to go through the full registration process.
  • Due to its unique status .net is not among the six other original generic top-level-domains in RFC920, the document which outlines the original domain name conventions. It was still created on the same day as the others though – 1/1/1985.
  • Today the .net zone sits at just over 15 million registered domains, roughly 10 times more than in the year 2000 when there were about 1.5 million registered.
  • The .net zone has doubled in size since 2006.
  • In 2012, the average character length of .net domain names created was 12 characters.
  • As social media grows in popularity, a trend of registering domain names and pointing them to social media accounts is emerging; most notably on Facebook. As of March 2013, 6,503 .net domain names pointed to Facebook. This is up from 5,039 in March 2012. That’s almost a 23% annual growth rate.
  • Approximately half of the 15 million .net domains registered today are registered within the United States.
  • .net domain names are hosted in more than 200 countries worldwide.
  • Almost half (48%) of the .net domains registered in India have e-Commerce functionality on their sites.
  • A single .net domain name can be registered in as many as 350 different native languages thanks to internationalized-domain-names (IDNs). IDNs make the Internet more globally accessible and functional by enabling domain names in non-ASCII characters.
  • Verisign applied for 3 transliterations of .net in Hangul, Simplified Chinese, and Devanagari last year through ICANN’s new gTLD program.
  • The percentage of the total base of .net domain names that are registered in Japan (2.51%) is almost twice that of the percentage of the total base of .com domains that are registered in Japan (1.43%).
  • DNSSEC (Domain Name System Security Extensions) adds security to the DNS. Compared to .com, .net has almost double the percentage of DNSSEC enabled domains today.
  • Today, more that 99.9% of 6+ character .net domain names are available.

It is clear that .net is one of the most visible and venerable parts of the Internet domain space. As one of the world’s most reliable and established domains, businesses seeking to establish their online presence have relied on .net for more than two decades. To learn more about .net and see if the domain name you want is available, visit Verisigninc.com/dotnet.

Verisign Revenues Boom In Q1, 2013 With 2M New .COM/.NET Registrations

Verisign reported revenues of $236 million for the first quarter of 2013 as 1.99 million new .com and .net domain name registrations were added to the base, an increase of 15.5 percent in revenues and 5.5 percent in registrations when compared to the same quarter in 2012.In the financial results, Verisign also reported they had processed 8.8 million new domain name registrations as compared to 8.9 million for the same quarter a year prior.The full news release with the financial results is posted below:Verisign Reports 15 Percent Year-Over-Year Revenue Growth in First Quarter 2013
VeriSign, Inc., the global leader in domain names, today reported financial results for the first quarter ended March 31, 2013.First Quarter GAAP Financial Results
VeriSign, Inc., and subsidiaries (“Verisign”) reported revenue of $236 million for the first quarter of 2013, up 15 percent from the same quarter in 2012. Verisign reported net income of $85 million and diluted earnings per share (EPS) of $0.52 for the first quarter of 2013, compared to net income of $68 million and diluted EPS of $0.42 in the same quarter in 2012. The operating margin was 56.4 percent for the first quarter of 2013 compared to 48.1 percent for the same quarter in 2012.First Quarter Non-GAAP Financial Results
Verisign reported, on a non-GAAP basis, net income of $94 million and diluted EPS of $0.58 for the first quarter of 2013, compared to net income of $68 million and diluted EPS of $0.42 for the same quarter in 2012. The non-GAAP operating margin was 59.6 percent for the first quarter of 2013 compared to 51.9 percent for the same quarter in 2012. A table reconciling the GAAP to the non-GAAP results (which excludes items described below) is appended to this release.”The first quarter demonstrates our continued focus and discipline in the execution of our strategic framework,” commented Jim Bidzos, executive chairman, president and chief executive officer.”We are pleased with the successful completion of our $750 million senior unsecured notes offering,” stated George Kilguss III, senior vice president and chief financial officer.Financial Highlights

  • On April 16, 2013, Verisign issued $750 million of 4.625% Senior Notes due May 2023. Verisign used a portion of the proceeds from the offering to repay the $100 million in outstanding indebtedness under its existing revolving credit facility and intends to use the remaining amount for general corporate purposes, including, but not limited to, the repurchase of shares under its share repurchase program.
  • Verisign ended the first quarter with Cash, Cash Equivalents, Marketable Securities and Restricted Cash of $1.57 billion, an increase of $9 million from year-end 2012.
  • Cash flow from operations was $151 million for the first quarter compared with $110 million for the same quarter in 2012.
  • Deferred revenues on March 31, 2013, totaled $847 million, an increase of $34 million from year-end 2012.
  • Capital expenditures were $17 million in the first quarter of 2013.
  • During the first quarter, Verisign repurchased approximately 3.0 million shares of its common stock for a cost of approximately $132 million. At March 31, 2013, approximately $844 million remained available and authorized under the current share repurchase program.
  • For purposes of calculating diluted EPS, the first quarter diluted share count included 7.9 million shares related to the subordinated convertible debentures, compared with 2.5 million shares in the same quarter in 2012. These represent diluted shares and not shares that have been issued.
  • Due to the stock price exceeding the subordinated convertible debentures trigger price during the first quarter of 2013, holders have the option to convert the debentures into common stock during the second quarter of 2013. Consequently, the debt component of the subordinated convertible debentures, the related embedded derivative, and deferred tax liability were reclassified from long-term liabilities to current liabilities, while the associated unamortized debt issuance costs were reclassified from long-term assets to current assets, as of March 31, 2013.

Business Highlights

  • Verisign Registry Services added 1.99 million net new names and ended the first quarter with 123.1 million active domain names in the zone for .com and .net, representing a 5.5 percent increase year over year.
  • In the first quarter, Verisign processed 8.8 million new domain name registrations as compared to 8.9 million for the same quarter a year prior.

Non-GAAP Items
Non-GAAP financial results exclude the following items that are included under GAAP: discontinued operations, stock-based compensation, amortization of other intangible assets, impairments of goodwill and other intangible assets, restructuring charges, contingent interest payments to holders of the subordinated convertible debentures, unrealized gain/loss on contingent interest derivative on subordinated convertible debentures, and non-cash interest expense. Non-GAAP financial information is also adjusted for a 28 percent tax rate starting from the third quarter of 2012, and 30 percent for the other periods presented herein, both of which differ from the GAAP tax rate. A table reconciling the GAAP to non-GAAP operating income and net income is appended to this release.The Verisign news release was sourced from here.

EURid Quarterly Report Shows 80% Of .EU Domains Renewed In 2012

EURid logoOn average, 80% of .eu domain names were renewed in 2012, according to the latest progress report from the .eu registry EURid as registrations grew at 5.4 percent year-on-year to 3.7 million active registrations. This is the sixth year running that .eu has maintained such a high renewal rate, which EURid says indicates .eu domain name holders are a loyal group.

The TLD finished the quarter, and the year, with 3.7 million registrations.

“I consider a growth rate that is comparable to 2011 (5.5%) to be a notable achievement, particularly in light of the on-going global economic crisis,” commented EURid General Manager, Marc Van Wesemael.

During Q4 2012, there were 230,752 new .eu registrations. Of these, 7 184, or 3 percent, were multiyear registrations (registrations for two years or more). Compared with Q3 2012, the number of multiyear registrations increased by 46 percent, signifying that a growing number domain name holders plan to hold onto their .eu domains for the foreseeable future.

The total number of .eu registrations increased in 22 of the 27 EU Member States. Bulgaria, Belgium, Slovenia, Lithuania and Finland all saw growth of more than 5 percent.

The growth rate compares to the total base of domain names that increased by 12 percent in the year to the end of the third quarter in 2012, while the number of ccTLD registrations increased by 20.7 percent, according to the latest Verisign Domain Name Brief, while combined .com and .net domains increased by 7.1 percent.

Overall, .eu ranks as the eleventh largest TLD. The largest is .com with 107.6 million registrations followed by .de (Germany) with 15.4 million, .net (15m) and then probably .tk (Tokelau), which gives away its domains for free and probably over 13 million registrations and .cn (China) which is growing rapidly again with 13.4 million.

Following is .uk (United Kingdom) and .org, both with 10.2 million, .info (6.9m), .nl (Netherlands – 5.2m), .ru (Russian Federation – 4.4m) and then .eu.

The report also outlines a new EURid-UNESCO Insights report titled, “The EURid-UNESCO world report on Internationalised Domain Names deployment 2012″ that analyses the growth of multilingualism on the Internet and the factors that contribute towards that growth, including the use of Internationalised Domain Names (IDNs).

Also, EURid tested its crisis management capabilities and successfully ran an unannounced Business Continuity Plan (BCP) exercise in December 2012. The exercise focused on switching the EPP, Registrar Extranet, Registrar DAS and Registrar WHOIS services from one data centre to another and back again. The impact on the registrar infrastructure was minimal – a temporary interruption of approximately 15 minutes.

The full EURid Quarterly Progress Report for the fourth quarter 2012 is available for download at www.eurid.eu/en/about-us/publications/quarterly-progress-reports.

Domain registration statistics were sourced from:

Verisign Reports Revenue Up 13%, .COM & .NET Registrations Up 6.4% In 12 Months

Verisign logoVerisign, who among other things provides registry services for .com and .net domain names, has reported fourth quarter 2012 financial results with reported revenue of $230 million, up 13 percent from the same quarter in 2011.

Directly relating to domain names, Verisign has reported:

  • 1.25 million net new names were added to the .com and .net base combined, ending the fourth quarter with 121.1 million active domain names, a 6.4 percent increase year over year
  • it processed 8.0 million and 33.1 million new domain name registrations for .com and .net, representing 0.9 percent and 3.0 percent increase year over year, in the fourth quarter and full year 2012 periods, respectively.
  • the U.S. Department of Commerce approved the renewal of Verisign’s revised agreement, on the terms described in that announcement, with ICANN, to serve as the authoritative registry operator for the .com registry for the term commencing on Dec. 1, 2012 through Nov. 30, 2018.
  • as of July 1, 2013, the registry fee for .net domain names will increase from $5.11 to $5.62.

To check out the full news release announcing the financial results, see below:

Verisign Reports 13 Percent Year-Over-Year Revenue Growth in 2012

RESTON, VA–(Marketwire – Jan 24, 2013) – VeriSign, Inc. (NASDAQ: VRSN), the trusted provider of Internet infrastructure services for the networked world, announced financial results for the fourth quarter of 2012 and year ended Dec. 31, 2012.

Fourth Quarter GAAP Financial Results
VeriSign, Inc. and subsidiaries (“Verisign”) reported revenue of $230 million for the fourth quarter of 2012, up 13 percent from the same quarter in 2011. Verisign reported net income of $106 million and diluted earnings per share (EPS) of $0.65 for the fourth quarter of 2012, compared to net income of $54 million and diluted EPS of $0.34 for the same quarter in 2011. The operating margin was 58.8 percent for the fourth quarter of 2012 compared to 45.6 percent for the same quarter in 2011. Results for the fourth quarter of 2012 included non-recurring pre-tax benefits of $13.6 million, split $5.8 million and $7.8 million between continuing operations and discontinued operations, respectively, primarily related to reimbursements of previously incurred litigation and defense costs, received upon settlement with the selling shareholders of a previously acquired business. Additionally, results for the fourth quarter of 2012 include pre-tax benefits of $5.5 million related to a change in the estimated bonus payout. Together these items increased the operating margin by 4.9 percent and diluted EPS by $0.07. Results for the fourth quarter of 2011 included a pre-tax, $4 million non-operating accrued expense, which was non-recurring in nature and which reduced diluted EPS by $0.02.

Fourth Quarter Non-GAAP Financial Results
Verisign reported, on a non-GAAP basis, net income of $96 million and diluted EPS of $0.59 for the fourth quarter of 2012, compared to net income of $64 million and diluted EPS of $0.40 for the same quarter in 2011. The non-GAAP operating margin was 62.0 percent for the fourth quarter of 2012 compared to 50.9 percent for the same quarter in 2011. Non-GAAP results for the fourth quarter of 2012 included non-recurring pre-tax benefits of $5.8 million recorded in continuing operations, primarily related to reimbursements of previously incurred litigation and defense costs, received upon settlement with the selling shareholders of a previously acquired business. Additionally, the non-GAAP results for the fourth quarter of 2012 include pre-tax benefits of $5.5 million related to a change in the estimated bonus payout. Together these items increased the operating margin by 4.9 percent and diluted EPS by $0.05. Results for the fourth quarter of 2011 included a pre-tax, $4 million non-operating accrued expense, which was non-recurring in nature and which reduced diluted EPS by $0.02. A table reconciling the GAAP to the non-GAAP results (which excludes items described below) is appended to this release.

“In 2012, Verisign marked 15 years of uninterrupted availability for .com and .net and we renewed the .com Registry Agreement for an additional six years. Our performance continues to demonstrate discipline and operational focus. In 2013, we will continue to seek quality growth, while protecting and managing our business,” said Jim Bidzos, chairman and chief executive officer of Verisign.

2012 GAAP Financial Results
For the year ended Dec. 31, 2012, Verisign reported revenue of $874 million, up 13 percent from $772 million in 2011. Verisign reported net income of $320 million and diluted EPS of $1.95 in 2012, compared to net income of $143 million and diluted EPS of $0.86 in 2011. The operating margin for 2012 was 52.4 percent compared to 42.7 percent in 2011.

2012 Non-GAAP Financial Results
Verisign reported, on a non-GAAP basis, net income of $322 million and diluted EPS of $1.97 for 2012, compared to net income of $249 million and diluted EPS of $1.49 in 2011. The non-GAAP operating margin for 2012 was 56.2 percent compared to 49.7 percent in 2011. A table reconciling the GAAP to the non-GAAP results (which excludes items described below) is appended to this release.

Financial Highlights

  • Verisign ended the fourth quarter of 2012 with Cash, Cash Equivalents, Marketable Securities and Restricted Cash of $1.56 billion, an increase of $211 million from year-end 2011.
  • Cash flow from operations was $171 million for the fourth quarter of 2012 and $538 million for the full year 2012, compared with $124 million for the same quarter in 2011 and $336 million for the full year 2011.
  • Deferred revenues ended the fourth quarter of 2012 totaling $813 million, an increase of $84 million from year-end 2011.
  • Capital expenditures were $13 million in the fourth quarter and $53 million for the full year.
  • During the fourth quarter, Verisign repurchased approximately 2.3 million shares of its common stock for a cost of $94 million. During the full year 2012, Verisign repurchased approximately 7.7 million shares of its common stock for a cost of $315 million. On Dec. 5, 2012, the Board of Directors authorized the repurchase of up to approximately $458.8 million of our common stock, in addition to the approximately $541.2 million of our common stock remaining available for repurchase under the previous 2010 Share Buyback Program, for a total repurchase of up to $1.0 billion of Verisign common stock. At Dec. 31, 2012, approximately $976 million remained available and authorized for share repurchases.
  • For purposes of calculating diluted EPS, the fourth quarter diluted share count included 6.4 million shares related to the convertible debentures. These represent dilutive shares and not shares that have been issued. There was no dilution from the convertible debentures in the same quarter of 2011.
  • Due to the stock price not exceeding the convertible debentures trigger during the fourth quarter of 2012, the debentures are no longer convertible starting Jan. 1, 2013. Consequently, the debt component of the convertible debentures, the related embedded derivative, and deferred tax liability were reclassified from current liabilities to long-term liabilities, while the associated unamortized debt issuance costs were reclassified from current assets to long-term assets, as of Dec. 31, 2012.

Business and Corporate Highlights

  • Verisign Registry Services added 1.25 million net new names and ended the fourth quarter with 121.1 million active domain names in the zone for .com and .net, representing a 6.4 percent increase year over year.
  • Verisign processed 8.0 million and 33.1 million new domain name registrations for .com and .net, representing 0.9 percent and 3.0 percent increase year over year, in the fourth quarter and full year 2012 periods, respectively.
  • On Nov. 30, 2012, Verisign announced that the U.S. Department of Commerce approved the renewal of Verisign’s revised agreement, on the terms described in that announcement, with the Internet Corporation for Assigned Names and Numbers (ICANN), to serve as the authoritative registry operator for the .com registry for the term commencing on Dec. 1, 2012 through Nov. 30, 2018.
  • On Dec. 19, 2012, Verisign announced that as of July 1, 2013, the registry fee for .net domain names will increase from $5.11 to $5.62.

Non-GAAP Items
Non-GAAP financial results exclude the following items that are included under GAAP: Discontinued operations, stock-based compensation, amortization of other intangible assets, impairments of goodwill and other intangible assets, restructuring charges, contingent interest payments to holders of our Convertible Debentures, unrealized gain/loss on contingent interest derivative on Convertible Debentures, and non-cash interest expense. Non-GAAP financial information is also adjusted for a 28 percent tax rate starting from the third quarter of 2012, and 30 percent for the other periods presented herein, both of which differ from the GAAP tax rate. A table reconciling the GAAP to non-GAAP operating income and net income is appended to this release.

Today’s Conference Call
Verisign will host a live conference call today at 4:30 p.m. (EST) to review the fourth quarter and full year 2012 results. The call will be accessible by direct dial at (888) 676-VRSN (U.S.) or (913) 312-0637 (international). A listen-only live web cast and accompanying slide presentation of the fourth quarter and full year 2012 earnings conference call will also be available at http://investor.verisign.com. A replay of this call will be available at (888) 203-1112 or (719) 457-0820 (passcode: 1285042) beginning at 8:00 p.m. (EST) on Jan. 24, 2012, and will run through Feb. 1, 2012, at 7:00 p.m. (EST). An audio archive of the call will be available at https://investor.verisign.com/events.cfm. This news release and the financial information discussed on today’s conference call are available at http://investor.verisign.com.

About Verisign
VeriSign, Inc. (NASDAQ: VRSN) is the trusted provider of Internet infrastructure services for the networked world. Billions of times each day, Verisign helps companies and consumers all over the world connect between the dots. Additional news and information about the company is available at www.verisigninc.com.

VRSNF

Statements in this announcement other than historical data and information constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended. These statements involve risks and uncertainties that could cause Verisign’s actual results to differ materially from those stated or implied by such forward-looking statements. The potential risks and uncertainties include, among others, the uncertainty of whether the Department of Commerce will approve any exercise by the Company of its right to increase the price per .com domain name, under certain circumstances, and whether the Company will be able to demonstrate to the Department of Commerce that market conditions warrant removal of the pricing restrictions on .com domain names; the uncertainty of future revenue and profitability and potential fluctuations in quarterly operating results due to such factors as restrictions on increasing prices under the 2012 .com Registry Agreement, increasing competition, pricing pressure from competing services offered at prices below our prices and changes in marketing and advertising practices, including those of third-party registrars; changes in search engine algorithms and advertising payment practices; challenging global economic conditions; challenges to ongoing privatization of Internet administration; the outcome of legal or other challenges resulting from our activities or the activities of registrars or registrants, or litigation generally; new or existing governmental laws and regulations; changes in customer behavior, Internet platforms and web-browsing patterns; the uncertainty of whether Verisign will successfully develop and market new services; the uncertainty of whether our new services will achieve market acceptance or result in any revenues; system interruptions; security breaches; attacks on the Internet by hackers, viruses, or intentional acts of vandalism; whether Verisign will be able to continue to expand its infrastructure to meet demand; the uncertainty of the expense and timing of requests for indemnification, if any, relating to completed divestitures; and the impact of the introduction of new gTLDs, any delays in their introduction and whether our gTLD applications or the applicants’ gTLD applications for which we have contracted to provide back-end registry services will be successful. More information about potential factors that could affect the Company’s business and financial results is included in Verisign’s filings with the Securities and Exchange Commission, including in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Verisign undertakes no obligation to update any of the forward-looking statements after the date of this announcement.

©2013 VeriSign, Inc. All rights reserved. VERISIGN, the VERISIGN logo, and other trademarks, service marks, and designs are registered or unregistered trademarks of VeriSign, Inc. and its subsidiaries in the United States and in foreign countries. All other trademarks are property of their respective owners.

VERISIGN, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except par value)
(Unaudited)
December 31,
2012
December 31,
2011
ASSETS
Current assets:
Cash and cash equivalents $ 130,736 $ 1,313,349
Marketable securities 1,425,700 32,860
Accounts receivable, net 11,477 14,974
Deferred tax assets 82,812 64,751
Prepaid expenses and other current assets 30,795 21,847
Total current assets 1,681,520 1,447,781
Property and equipment, net 333,861 327,136
Goodwill and other intangible assets, net 52,527 53,848
Long-term deferred tax assets 7,299 2,758
Other long-term assets 25,325 24,656
Total long-term assets 419,012 408,398
Total assets $ 2,100,532 $ 1,856,179
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable and accrued liabilities $ 130,391 $ 156,385
Deferred revenues 564,627 502,538
Total current liabilities 695,018 658,923
Long-term deferred revenues 247,955 226,033
Convertible debentures, including contingent interest derivative 597,614 590,086
Long-term debt 100,000 100,000
Long-term deferred tax liabilities 424,970 325,527
Other long-term tax liabilities 44,298 43,717
Total long-term liabilities 1,414,837 1,285,363
Total liabilities 2,109,855 1,944,286
Commitments and contingencies
Stockholders’ deficit:
Preferred stock–par value $.001 per share; Authorized shares: 5,000; Issued and outstanding shares: none
Common stock–par value $.001 per share; Authorized shares: 1,000,000; Issued shares: 318,722 at December 31, 2012 and 316,781 at December 31, 2011; Outstanding shares: 153,392 at December 31, 2012 and 159,422 at December 31, 2011 319 317
Additional paid-in capital 19,891,291 20,135,237
Accumulated deficit (19,900,545 ) (20,220,577 )
Accumulated other comprehensive loss (388 ) (3,084 )
Total stockholders’ deficit (9,323 ) (88,107 )
Total liabilities and stockholders’ deficit $ 2,100,532 $ 1,856,179
VERISIGN, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(In thousands, except per share data)
(Unaudited)
Three Months Ended
December 31,
Year Ended
December 31,
2012 2011 2012 2011
Revenues $ 230,196 $ 203,646 $ 873,592 $ 771,978
Costs and expenses:
Cost of revenues 42,040 42,016 167,600 165,246
Sales and marketing 20,753 27,772 97,809 97,432
Research and development 16,059 13,121 61,694 53,277
General and administrative 16,024 24,512 89,927 111,122
Restructuring charges (35 ) 3,352 (765 ) 15,512
Total costs and expenses 94,841 110,773 416,265 442,589
Operating income 135,355 92,873 457,327 329,389
Interest expense (12,657 ) (11,859 ) (50,196 ) (147,332 )
Non-operating income, net 8,596 (3,688 ) 5,564 11,530
Income from continuing operations before income taxes 131,294 77,326 412,695 193,587
Income tax expense (30,205 ) (31,997 ) (100,210 ) (55,031 )
Income from continuing operations, net of tax 101,089 45,329 312,485 138,556
Income from discontinued operations, net of tax 4,552 8,485 7,547 4,335
Net income 105,641 53,814 320,032 142,891
Foreign currency translation adjustments 112 110
Increase (decrease) in unrealized gain on investments, net of tax 221 (15 ) 2,757 688
Realized (gain) loss on investments, net of tax, included in net income (6 ) 3 (61 ) (2,548 )
Other comprehensive income (loss) 215 100 2,696 (1,750 )
Comprehensive income $ 105,856 $ 53,714 $ 322,728 $ 141,141
Basic income per share:
Continuing operations $ 0.65 $ 0.28 $ 1.99 $ 0.84
Discontinued operations 0.03 0.06 0.05 0.03
Net income $ 0.68 $ 0.34 $ 2.04 $ 0.87
Diluted income per share:
Continuing operations $ 0.62 $ 0.28 $ 1.91 $ 0.83
Discontinued operations 0.03 0.06 0.04 0.03
Net income $ 0.65 $ 0.34 $ 1.95 $ 0.86
Shares used to compute net income per share
Basic 154,642 159,226 156,953 165,408
Diluted 162,034 160,087 163,909 166,887
VERISIGN, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Year Ended December 31,
2012 2011
Cash flows from operating activities:
Net income $ 320,032 $ 142,891
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property and equipment and amortization of other intangible assets 54,819 55,706
Stock-based compensation 33,362 43,272
Excess tax benefit associated with stock-based compensation (18,436 ) (13,420 )
Other, net 10,981 12,965
Changes in operating assets and liabilities
Accounts receivable 3,327 (251 )
Prepaid expenses and other assets (31,946 ) 11,043
Accounts payable and accrued liabilities 81,480 18,162
Deferred revenues 84,011 65,533
Net cash provided by operating activities 537,630 335,901
Cash flows from investing activities:
Proceeds from maturities and sales of marketable securities 1,234,156 546,006
Purchases of marketable securities (2,622,898 ) (78,975 )
Purchases of property and equipment (53,023 ) (192,660 )
Other investing activities (588 ) (1,129 )
Net cash (used in) provided by investing activities (1,442,353 ) 273,242
Cash flows from financing activities:
Proceeds from issuance of common stock from option exercises and employee stock purchase plans 29,303 49,983
Repurchases of common stock (325,680 ) (550,097 )
Payment of dividends to stockholders (463,498 )
Excess tax benefit associated with stock-based compensation 18,436 13,420
Proceeds received from borrowings 100,000
Repayment of borrowings (1,067 )
Other financing activities 189 (939 )
Net cash used in financing activities (277,752 ) (852,198 )
Effect of exchange rate changes on cash and cash equivalents (138 ) (3,224 )
Net decrease in cash and cash equivalents (1,182,613 ) (246,279 )
Cash and cash equivalents at beginning of period 1,313,349 1,559,628
Cash and cash equivalents at end of period $ 130,736 $ 1,313,349
Supplemental cash flow disclosures:
Cash paid for interest, net of capitalized interest $ 41,276 $ 140,193
Cash paid for income taxes, net of refunds received $ 19,436 $ 6,567
VERISIGN, INC.
STATEMENTS OF OPERATIONS RECONCILIATION
(In thousands, except per share data)
(Unaudited)
Three Months Ended Three Months Ended
December 31, 2012 December 31, 2011
Operating Income Net Income Operating Income Net Income
GAAP as reported $ 135,355 $ 105,641 $ 92,873 $ 53,814
Discontinued operations (4,552 ) (8,485 )
Adjustments:
Stock-based compensation 6,971 6,971 7,165 7,165
Amortization of other intangible assets 533 533 325 325
Restructuring charges (35 ) (35 ) 3,352 3,352
Unrealized (gain)loss on contingent interest derivative on Convertible Debentures (7,549 ) 1,625
Non-cash interest expense 1,961 1,555
Tax adjustment (7,085 ) 4,593
Non-GAAP as adjusted $ 142,824 $ 95,885 $ 103,715 $ 63,944
Revenues $ 230,196 $ 203,646
Non-GAAP operating margin 62.0 % 50.9 %
Diluted shares 162,034 160,087
Per diluted share, non-GAAP as adjusted $ 0.59 $ 0.40

Verisign provides quarterly and annual financial statements that are prepared in accordance with generally accepted accounting principles (GAAP). Along with this information, we typically disclose and discuss certain non-GAAP financial information in our quarterly earnings release, on investor conference calls and during investor conferences and related events. This non-GAAP financial information does not include the following types of financial measures that are included in GAAP: discontinued operations, stock-based compensation, amortization of other intangible assets, impairments of goodwill and other intangible assets, restructuring charges, contingent interest payments to holders of our Convertible Debentures, unrealized gain/loss on contingent interest derivative on Convertible Debentures, and non-cash interest expense. Non-GAAP financial information is also adjusted for a 28 percent tax rate starting from the third quarter of 2012 and 30 percent for all other periods presented herein, both of which differ from the GAAP tax rate.

Management believes that this non-GAAP financial data supplements our GAAP financial data by providing investors with additional information that allows them to have a clearer picture of the Company’s operations. The presentation of this additional information is not meant to be considered in isolation nor as a substitute for results prepared in accordance with GAAP. We believe that the non-GAAP information enhances the investors’ overall understanding of our financial performance and the comparability of the company’s operating results from period to period. Above, we have provided a reconciliation of the non-GAAP financial information that we provide each quarter with the comparable financial information reported in accordance with GAAP for the given period.

SUPPLEMENTAL FINANCIAL INFORMATION
The following table presents the classification of stock-based compensation:

Three Months Ended December 31,
2012 2011
Cost of revenues $ 1,275 $ 1,376
Sales and marketing 1,045 1,206
Research and development 1,832 961
General and administrative 2,819 3,622
Total stock-based compensation expense $ 6,971 $ 7,165
VERISIGN, INC.
STATEMENTS OF OPERATIONS RECONCILIATION
(In thousands, except per share data)
(Unaudited)
Year Ended Year Ended
December 31, 2012 December 31, 2011
Operating Income Net Income Operating Income Net Income
GAAP as reported $ 457,327 $ 320,032 $ 329,389 $ 142,891
Discontinued operations (7,547 ) (4,335 )
Adjustments:
Stock-based compensation 33,362 33,362 37,571 37,571
Amortization of other intangible assets 1,321 1,321 1,293 1,293
Restructuring charges (765 ) (765 ) 15,512 15,512
Contingent interest payment to holders of Convertible Debentures 100,020
Unrealized (gain)loss on contingent interest derivative on Convertible Debentures (422 ) 1,125
Non-cash interest expense 7,370 6,540
Tax adjustment (30,860 ) (51,663 )
Non-GAAP as adjusted $ 491,245 $ 322,491 $ 383,765 $ 248,954
Revenues $ 873,592 $ 771,978
Non-GAAP operating margin 56.2 % 49.7 %
Diluted shares 163,909 166,887
Per diluted share, non-GAAP as adjusted $ 1.97 $ 1.49

Verisign provides quarterly and annual financial statements that are prepared in accordance with generally accepted accounting principles (GAAP). Along with this information, we typically disclose and discuss certain non-GAAP financial information in our quarterly earnings release, on investor conference calls and during investor conferences and related events. This non-GAAP financial information does not include the following types of financial measures that are included in GAAP: discontinued operations, stock-based compensation, amortization of other intangible assets, impairments of goodwill and other intangible assets, restructuring charges, contingent interest payments to holders of our Convertible Debentures, unrealized gain/loss on contingent interest derivative on Convertible Debentures, and non-cash interest expense. Non-GAAP financial information is also adjusted for a 28 percent tax rate starting from the third quarter of 2012 and 30 percent for all other periods presented herein, both of which differ from the GAAP tax rate.

Management believes that this non-GAAP financial data supplements our GAAP financial data by providing investors with additional information that allows them to have a clearer picture of the Company’s operations. The presentation of this additional information is not meant to be considered in isolation nor as a substitute for results prepared in accordance with GAAP. We believe that the non-GAAP information enhances the investors’ overall understanding of our financial performance and the comparability of the company’s operating results from period to period. Above, we have provided a reconciliation of the non-GAAP financial information that we provide each quarter with the comparable financial information reported in accordance with GAAP for the given period.

SUPPLEMENTAL FINANCIAL INFORMATION
The following table presents the classification of stock-based compensation:

Year Ended December 31,
2012 2011
Cost of revenues $ 5,754 $ 6,655
Sales and marketing 6,091 6,062
Research and development 6,023 4,926
General and administrative 15,494 19,928
Restructuring charges 5,701
Total stock-based compensation expense $ 33,362 $ 43,272

 

The above Verisign news release was sourced from:
www.verisigninc.com/en_US/news-events/press-room/articles/index.xhtml?artLink=aHR0cDovL2ZlZWRzLm13bmV3c3Jvb20uY29tL2FydGljbGUvcnNzP2lkPTE2ODAxNDA%3D

 

.FR Reaches 2.5m Registrations And Top 5 Fastest Growing ccTLDs

AFNIC logoThe French ccTLD, .FR, reached 2.5 million domain name registrations this week, and achieved the milestone relatively quickly as it is among the top five ccTLDs when it comes to growth.

Growing at 16 percent per annum, .FR has achieved significant growth in recent years following the liberalisation of registration policies allowing first individuals to register domain names, and now people and businesses within Europe.

In September .fr TLD had just over one third (34.1%) of the market share in France, an increase of almost two pecentage points year on year. And the 2.5 millionth registration was borders-collie.fr, which unsurprisingly went to a dog breeder.

However .fr still has some way to go to reach the top ten top level domains, trailing .com, the world’s largest TLD with 105.79 million registered domain names and .de (Germany) the world’s largest ccTLD, and second largest TLD, with 15.27 million registered domain names.

Next is .net with 14.88 million registrations, .tk (Tokelau – approximately 13 million), .uk (United Kingdom – 10.24m), .org (10.10m), .info (7.24m), .nl (5.12m), .ru (Russia – 4.16m), .cn (China – 3.98m) and then, recently dropping out of the top ten, .eu, with 3.70m.

TLD registration statistics come from Registrar Stats while ccTLD statistics come from registry websites.

URS Could Arrive Soon at .Com & .Net by Philip Corwin, Internet Commerce Association

Internet Commerce Association logoRather than being considered for implementation at the .com and .net registries through the front door of UDRP reform, Uniform Rapid Suspension (URS) could arrive at these registries in advance of that reform through the backdoor of ending registry-registrar separation.

That’s the major import of a resolution adopted by ICANN’s Board on October 18th in Toronto, reading, “Resolved (2012.10.18.01), the Proposed Revised Process for Handling Request for Removal of Cross-Ownership Restrictions of Existing gTLDs, as posted on 16 May 2012, is approved as revised.” (www.icann.org/en/groups/board/documents/resolutions-18oct12-en.htm#1.a)

The revised May 16th document outlining the process for handling requests for cross-ownership can be found at www.icann.org/en/news/public-comment/revised-cross-ownership-restrictions-16may12-en.htm. An incumbent gTLD registry operator such as VeriSign that wishes to have its cross-ownership of registrar limitation lifted would have to submit a written request to ICANN that either agrees to transition to the new registry agreement required for all operators of new gTLDs, or to amend its current registry agreement more narrowly with the addition of several required provisions to ensure fair competition and require adherence to the new gTLD Registry Code of Conduct. One of these required amendments states that “Registry Operator shall not act as a registrar with respect to the TLD” although some permissible exceptions may provide substantial loopholes.

ICANN would also alert appropriate national competition authorities of the request to ease the cross-ownership restrictions and solicit their input where it determines that lifting the affiliation and control restrictions might raise significant competition issues.

So, if VeriSign determined that it wished to get out from under the current cross-ownership restrictions – notwithstanding the fact that it could not act, at least directly, as registrar for .com, .net, or domains at other registries it controls – it would submit an application to ICANN. It could choose to either accept the new gTLD registry agreement – which would subject its incumbent registries to the URS as well as the final version of the Trademark Clearinghouse (TMC) as both are required rights protection mechanisms (RPMs) at new gTLDs — or it could opt for the narrower amendments.

Given the dominant position of .com and .net (about half of all current domain registrations), ICANN would almost certainly alert U.S. and EU competition authorities, at which point the request would be made public. Given the significant proportion of UDRP filings alleging cybersquatting at .com and .net we would expect brand owners to push loud and hard for ICANN to require VeriSign to comply with the new registry agreement even if their application requested only the narrower amendments – and that would bring along both the TMC and the URS.

Of course, we don’t know if VeriSign has any interest in affiliating with or controlling a registrar, much less when it might submit such a request. But they are now free to do so at any time, while consideration of UDRP reform will not be initiated under current ICANN policy until 18 months after the first new gTLD launches. The first new gTLD launch could now occur as early as the third quarter of 2013 under ICANN’s moist recently revised schedule, which would mean UDRP reform starting up and considering the performance of the RPMs at the new gTLDs in early 2015.

What we do know is that the final form and proper implementation of the URS takes on even more importance in the context of this recently adopted Resolution – and that is why ICA is working overtime to assure that URS remains a narrow supplement to the UDRP that preserves essential registrant due process rights.

This article by Philip Corwin from the Internet Commerce Association was sourced with permission from:
internetcommerce.org/URS%40DotCom

.EU Registrations Grow 7.6% In Q2 2012 To 3.6m

EURid logoRegistrations of .EU domain names continue to grow strongly with an increase of 7.6 percent in the year to the end of June 2012, according to the latest progress report from the .EU top level domain registry, EURid. This built on the 6.1 percent year-on-year increase reported in Q1 2012.

The second quarter includes the anniversary for when .EU was launched in April 2006 and traditionally sees more domain name deletions than other quarters, and hence a decline in registrations. However, Q2 2012 was different from previous second quarters. This year there was a quarterly net growth of 0.2 percent showing that 2012’s April anniversary had the smallest impact yet.

.EU is now the tenth largest TLD, and sixth largest ccTLD. .COM is the largest with 103.4m registrations, followed by (Germany) with 15.2m, .NET (14.7m), .TK (Tokelau – 11.2m), .UK (United Kingdom – 10.2m), .ORG (10m), .INFO (8.2m), .NL (Netherlands – 5.0m), .RU (Russian Federation – 4.0m) and .EU now with close to 3.7m.*

“.EU has maintained healthy registration rates for the first six months of this year, a fact reinforced by the Q2 2012 results,” said EURid’s General Manager, Marc Van Wesemael. “I am heartened by this growth which shows that Europeans continue to want .eu domain names despite the economic and political crisis still affecting Europe.”

EURid’s Q2 2012 report shows that Lithuania had the highest annual growth, with a 30 percent increase of .EU registrations compared with Q2 2011, followed by Malta (29%) and Austria (23%). During the same period, registrations in a further six European Union countries grew by over 10 percent, namely Bulgaria, the Czech Republic, France, Poland, Slovakia and Slovenia.

.EU completed the second quarter of 2012 with 3.60 million registered domain names. During these three months, the Czech Republic, Lithuania, Poland and Slovakia all saw quarterly growth of five percent or more.

Also during the quarter EURid launched YADIFA, an open-source name server implementation, as well as reducing fees for their Alternative Dispute Resolution (ADR) service by 50 percent.

YADIFA is for TLD operators and Internet Service Providers alike and is designed specifically for the efficient management of large internet zones and uses dynamic updates to instantly change domain name records. It is equally optimised to handle multiple Internet zones. The source code is also freely available.

The full report for Q2 2012 is available for download at link.eurid.eu/reports.

* the registration figures for ccTLDs above are updated from the EURid report with figures from the registry websites with the exception of .TK.