VeriSign Cleans Up In Earnings Report

VeriSign Inc. had a stellar first quarter, with sizeable jumps in both profit and revenue. The Internet-security company reported a profit of $48.6 million, or 23 cents a share, compared with net income of $ 2.2 million, or 2 cents, a year ago. Revenue shot to $213.4 million, compared with revenue of $34.1 million a year ago.

Forrester analyst Frank Prince says it's not surprising that VeriSign performed well. "People don't stop buying security in down markets."

"We feel insulated but not immune," says VeriSign CEO Stratton Sclavos regarding the tech downturn. Company executives, in fact, are saying that the company should see earnings of $985 million for the year, in line with Wall Street expectations. Execs say they feel comfortable with per-share earnings of 58 cents for the year.

VeriSign executives report that 200 new customers were signed during the quarter, which ended March 31. They say they now have 3,120 active business customers.