Verisign Reports: Revenue up 5%; There are 128.5 Million .Com & .Nets As of March 31

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VeriSign, Inc. (NASDAQ: VRSN), today reported financial results for the first quarter of 2014, reporting revenue of $249 million for the first quarter of 2014, up 5% from the same quarter in 2013.

Verisign reported net income of $94 million and diluted earnings per share (EPS) of $0.64 for the first quarter of 2014, compared to net income of $85 million and diluted EPS of $0.52 in the same quarter in 2013.

The operating margin was 56.1 percent for the first quarter of 2014 compared to 56.4 percent for the same quarter in 2013.

Verisign reported, on a non-GAAP basis, net income of $95 million and diluted EPS of $0.64 for the first quarter of 2014, compared to net income of $94 million and diluted EPS of $0.58 for the same quarter in 2013.

Shares are up $.80 after hours to back over $50 a share.

Verisign expects to complete in Q2 the intended repatriation of approximately $700M-$800M of cash held by foreign subsidiaries

Financial Highlights

Verisign ended the first quarter with cash, cash equivalents and marketable securities of $1.7 billion, flat as compared with year-end 2013.

Cash flow from operations was $142 million for the first quarter compared with $151 million for the same quarter in 2013.

Deferred revenues on March 31, 2014, totaled $886 million, an increase of $30 million from year-end 2013.

Capital expenditures were $11 million in the first quarter of 2014.

During the first quarter, Verisign repurchased 2.4 million shares of its common stock for $132 million. At March 31, 2014, $868 million remained available and authorized under the current share repurchase program.

Business Highlights

Verisign Registry Services added 1.28 million net new names during the first quarter, ending with 128.5 million active domain names in the zone for .com and .net, which represents a 4% increase over the zone at the end of the first quarter in 2013.

In the first quarter, Verisign processed 8.6 million new domain name registrations for .com and .net as compared to 8.8 million for the same period in 2013.

The final .com and .net renewal rate for the fourth quarter of 2013 was 72.2% compared with 72.9 % for the same quarter in 2012.

Renewal rates are not fully measurable until 45 days after the end of the quarter.

Verisign ended the quarter with $1.7 Billion in cash and equivalents