RealTime IT News

VeriSign Posts First Quarter Loss

VeriSign, Inc. today announced a loss of $5.2 million and revenues of $4.0 million for the first quarter ended March 31, 1998.

The company said the $5.2 million loss represented $.27 per share, compared to a net loss in the quarter ended March 31, 1997 of $3.6 million, or $.21 per share. Net loss for the quarter ended December 31, 1997 was $6.5 million or $.38 per share.

In January of this year, an initial public offering of 3.45 million shares was completed, and VeriSign said shares outstanding increased to 20.7 million for the quarter ended March 31, 1998.

The $4.0 million revenue gain translated into a 216% increase over revenues of $1.3 million reported in the quarter ended March 31, 1997. First quarter revenues increased 22% over $3.3 million of revenues reported in the previous quarter ended December 31, 1997.

VeriSign is a provider of digital certificate solutions for intranets, extranets and Internet commerce. The company's three business lines--consumer certificates, Web site certificates, and Enterprise certificate services--all experienced strong growth during the quarter in both unit volumes and revenues, the company said.

The Mountain View, CA-based company has more than 75 enterprise certificate customers including NTT, British Telecommunications, NationsBank, Bank of America, Hewlett-Packard, and the Federal Bureau of Investigation.

Earlier this month, VeriSign also entered into a significant bundling agreement with Hewlett-Packard subsidiary VeriFone.

"We are very pleased with our first quarter results as we saw impressive revenue and unit growth in our key lines of business as well as significant key account wins," said Stratton Sclavos, president and chief executive officer of VeriSign, in a statement.

"We believe our current success is indicative of both a general acceleration in electronic commerce and customer acknowledgment of VeriSign's continued leadership in the digital certificate marketplace."