VeriSign posts $4.8 billion second-quarter net loss

VeriSign last Thursday posted a US$4.8 billion second-quarter net loss, mostly because of a $4.6 billion charge related to acquisitions.

In the second quarter a year ago, the domain name registrar and network security company reported a net loss of $11.2 billion.

Using Generally Accepted Accounting Principles (GAAP), the company said the $4.8 billion charge was the result primarily of $4.6 billion in noncash charges covering goodwill and intangible assets for acquisitions over the past three years that were made primarily with stock.

Excluding those charges, on a pro forma basis, VeriSign earned $50 million, or 21 cents per diluted share in the quarter, compared with $53 million, or 25 cents per share in the second quarter of 2001. On a fully taxed basis, however, pro forma earnings were 15 cents per fully diluted share.

The Mountain View, Calif.-based company's revenue for the second quarter, which ended June 30, was $317 million, up 37 percent from the $231.2 million reported a year earlier.

"With the IT spending environment very challenging, we are focused on improving our business performance, managing expenses and rolling out new services that enable our customers to conduct trusted commerce and communications," said Stratton Sclavos, VeriSign's chairman and CEO, in a company statement.

VeriSign has been sued by several domain name providers over its direct-mail tactics, which they say are aimed at their customers.

VeriSign officials couldn't be reached for comment at deadline.

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