VeriSign, Inc. (VRSN) has reported a 23.76 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $114.43 million, or $0.90 a share in the quarter, compared with $92.46 million, or $0.70 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $118.60 million, or $0.93 a share compared with $102.78 million or $0.78 a share, a year ago. Revenue during the quarter grew 8.19 percent to $287.55 million from $265.78 million in the previous year period. Gross margin for the quarter expanded 44 basis points over the previous year period to 82.68 percent. Total expenses were 39.22 percent of quarterly revenues, down from 41.88 percent for the same period last year. This has led to an improvement of 266 basis points in operating margin to 60.78 percent.
Operating income for the quarter was $174.78 million, compared with $154.46 million in the previous year period.
However, the adjusted operating income for the quarter stood at $187.63 million compared to $166.68 million in the prior year period. At the same time, adjusted operating margin improved 254 basis points in the quarter to 65.25 percent from 62.72 percent in the last year period.
"In addition to solid third quarter financial results, we are pleased to report that the .com Registry Agreement extension to 2024 has been approved by NTIA and the Root Zone Maintainer Agreement with ICANN is now in effect. Security and stability of the critical root zone publication process has been prioritized and addressed with these steps," said Jim Bidzos, executive chairman, president and chief executive officer.
Operating cash flow improves marginally
VeriSign, Inc. has generated cash of $472.48 million from operating activities during the nine month period, up 2.06 percent or $9.53 million, when compared with the last year period. The company has spent $50.76 million cash to meet investing activities during the nine month period as against cash outgo of $510.42 million in the last year period.
The company has spent $472.70 million cash to carry out financing activities during the nine month period as against cash inflow of $33.77 million in the last year period.
Cash and cash equivalents stood at $177.78 million as on Sep. 30, 2016, down 0.05 percent or $0.09 million from $177.87 million on Sep. 30, 2015.
Working capital turns positive
Working capital of VeriSign, Inc. has turned positive to $312.54 million on Sep. 30, 2016 from negative $38.75 million on Sep. 30, 2015. Current ratio was at 1.21 as on Sep. 30, 2016, up from 0.98 on Sep. 30, 2015.
Days sales outstanding were almost stable at 5 days for the quarter, when compared with the last year period.
Debt remains almost stable
Total debt of VeriSign, Inc. remained almost stable for the quarter at $1,863.59 million, when compared with the last year period. Total debt was 81.10 percent of total assets as on Sep. 30, 2016, compared with 72.23 percent on Sep. 30, 2015. Interest coverage ratio improved to 6.04 for the quarter from 5.41 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
