Neustar, Inc. (NSR), today announced results for the quarter and year ended December 31, 2013 and provided guidance for 2014.

The market didn’t like the news, with shares of the company plummeting 25% after hours to $32 a share.

Neustar has a 52 week high of over $57 a share.

Of course the market may have not like Neustar’s updated statement it also issued today on “local number portability administrator selection”

“”Neustar announced an update on the selection process for the local number portability administrator contract beginning July 1, 2015. ”

Throughout the NPAC administrator selection process, Neustar has fully responded to each deadline and request.

In April 2013, Neustar submitted an initial proposal according to the process and subsequently responded to the North American Portability Management request for a revised submission.

In October 2013, the company requested the opportunity for all bidders to submit additional revised proposals. Together with that request, the company also submitted a revised proposal. On January 24, the company was notified that its October 2013 proposal would not be considered.””

Results for 2013 Compared to 2012

• Revenue increased 8% to $902.0 million
• Non-NPAC revenue increased 10% to $464.6 million
• Net income increased 4% to $162.8 million, or $2.46 per share, an increase of 7%
• Adjusted net income increased 13% to $233.5 million, or $3.53 per share, an increase of 16%

Results for Fourth Quarter 2013 Compared to Fourth Quarter 2012

• Revenue increased 11% to $237.6 million
• Non-NPAC revenue increased 15% to $128.3 million
• Net income increased 1% to $38.1 million, or $0.59 per share, an increase of 5%
• Adjusted net income increased 19% to $60.2 million, or $0.94 per share, an increase of 25%

Paul Lalljie, Neustar’s Chief Financial Officer added, “Our full-year and fourth quarter results continue to demonstrate our strong business fundamentals.

We generated double-digit revenue and adjusted net income growth in the fourth quarter, and we continued to generate strong free cash flow. In addition, we reduced our annual interest expense by $10 million through refinancing our outstanding debt and we bought back $285 million of our stock. In 2014, we will continue to focus on revenue growth, profits, and share repurchases.”

Business Outlook for 2014

Neustar’s Business Outlook excludes the impact of contemplated share repurchases.

• Revenue to range from $945 million to $970 million or growth of 5% to 8%
• Adjusted net income to range from $233 million to $243 million or flat to growth of 4%
• Adjusted net income per share is expected to range from $3.64 to $3.80, representing growth of 3% to 8%

Discussion of Full-Year 2013 Results

Revenue for the year totaled $902.0 million, an 8% increase from $831.4 million in 2012. This increase was due to stronger demand for our Marketing Services and Data Services and an increase in NPAC fixed-fee revenue in Data Registries.

Operating expense for 2013 totaled $612.7 million, a 10% increase from $554.7 million in 2012. This increase was driven by investments to support business growth. In particular, personnel and personnel-related expense increased $24.5 million driven by stock-based compensation expense and increased headcount. In addition, professional fees increased to pursue new business opportunities and advertising and marketing costs increased to promote awareness of the company’s services.

Discussion of Fourth Quarter Result

Revenue for the fourth quarter totaled $237.6 million, an 11% increase from $214.2 million in 2012. This increase was due to stronger demand for our Marketing Services and Data Services and an increase in NPAC fixed-fee revenue in Data Registries.

Operating expense for the fourth quarter totaled $174.3 million, a 20% increase from $144.9 million in 2012. The increase was primarily driven by the addition of $12.0 million in operating expenses associated with inorganic opportunities in 2013. Excluding these expenses, operating expense for the fourth quarter would have increased 12%. In particular, personnel and personnel-related expense increased as a result of higher headcount to support the expansion of the company’s operations and an increase in stock-based compensation. In addition, professional fees increased to pursue new business opportunities.

Liquidity and Capital Resources

As of December 31, 2013, cash, cash equivalents and investments totaled $223.3 million, a decrease of $120.6 million from $343.9 million as of December 31, 2012.

This decrease primarily reflects share repurchases of $285.3 million and $105.4 million for acquired platforms, offset by the generation of $287.9 million from operations.

As of December 31, 2013, the company’s outstanding debt under its term facility and 4.5% senior notes was $616.3 million.