VeriSign, Inc (VRSN) has reported a 3.96 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $105.55 million, or $0.84 a share in the quarter, compared with $101.53 million, or $0.76 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $115.25 million, or $0.92 a share compared with $105.08 million or $0.79 a share, a year ago.
Revenue during the quarter grew 5.01 percent to $286.27 million from $272.62 million in the previous year period. Gross margin for the quarter expanded 82 basis points over the previous year period to 82.85 percent. Total expenses were 41.05 percent of quarterly revenues, down from 41.94 percent for the same period last year. This has led to an improvement of 89 basis points in operating margin to 58.95 percent.
Operating income for the quarter was $168.76 million, compared with $158.28 million in the previous year period.
However, the adjusted operating income for the quarter stood at $183.06 million compared to $170.01 million in the prior year period. At the same time, adjusted operating margin improved 159 basis points in the quarter to 63.95 percent from 62.36 percent in the last year period.
“2016 saw a number of significant achievements for Verisign, which included obtaining ICANN and Commerce Department approval for extending the .com agreement to 2024, the continuation of our unique role of publishing the global internet root zone through a new agreement with ICANN, and surpassing 19 years of uninterrupted availability of the Verisign DNS for .com and .net. Secure, reliable operation of these critical infrastructure services help support billions of internet users worldwide,” said Jim Bidzos, executive chairman, president and chief executive officer.
Operating cash flow improves marginally
VeriSign, Inc has generated cash of $667.95 million from operating activities during the year, up 2.53 percent or $16.47 million, when compared with the last year.
The company has spent $40.40 million cash to meet investing activities during the year as against cash outgo of $496.90 million in the last year.
The company has spent $623.76 million cash to carry out financing activities during the year as against cash outgo of $117.78 million in the last year period.
Cash and cash equivalents stood at $231.94 million as on Dec. 31, 2016, up 1.44 percent or $3.29 million from $228.66 million on Dec. 31, 2015.
Working capital drops significantly
VeriSign, Inc has witnessed a decline in the working capital over the last year. It stood at $320.39 million as at Dec. 31, 2016, down 31.09 percent or $144.55 million from $464.94 million on Dec. 31, 2015. Current ratio was at 1.21 as on Dec. 31, 2016, down from 1.31 on Dec. 31, 2015.
Debt remains almost stable
Total debt of VeriSign, Inc remained almost stable for the quarter at $1,866.95 million, when compared with the last year period. Total debt was 79.97 percent of total assets as on Dec. 31, 2016, compared with 79.30 percent on Dec. 31, 2015. Interest coverage ratio improved to 5.82 for the quarter from 5.54 for the same period last year.
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