VeriSign, Inc. (NASDAQ: VRSN), a global leader in domain names and
Internet security, today reported financial results for the fourth
quarter and full year of 2015.
Fourth Quarter GAAP Financial Results
VeriSign, Inc. and subsidiaries (“Verisign”) reported revenue of $273
million for the fourth quarter of 2015, up 6.5 percent from the same
quarter in 2014. Verisign reported net income of $102 million and
diluted earnings per share (“diluted EPS”) of $0.76 for the fourth
quarter of 2015, compared to net income of $65 million and diluted EPS
of $0.48 for the same quarter in 2014. The operating margin was 58.1
percent for the fourth quarter of 2015 compared to 55.6 percent for the
same quarter in 2014.
As described in fourth quarter of 2014 earnings news release, net income
for the fourth quarter of 2014 was decreased by $26 million and diluted
EPS was decreased by $0.19 primarily due to a non-U.S. income tax charge
related to a reorganization of certain international operations and a
change in estimate for U.S. income tax charges related to the
repatriation of offshore assets.
Fourth Quarter Non-GAAP Financial Results
Verisign reported, on a non-GAAP basis, net income of $105 million and
diluted EPS of $0.79 for the fourth quarter of 2015, compared to net
income of $95 million and diluted EPS of $0.70 for the same quarter in
2014. The non-GAAP operating margin was 62.4 percent for the fourth
quarter of 2015 compared to 59.4 percent for the same quarter in 2014. A
table reconciling the GAAP to the non-GAAP results (which excludes items
described below) is appended to this release.
“We close 2015 marking more than five years, since completing the
divestitures in 2010, of growing revenues, operating income and earnings
while providing more than 18 years of uninterrupted availability of the
Verisign DNS for .com and .net. During 2015 we repurchased 9.3 million
shares returning $622 million to shareholders,” commented Jim Bidzos,
Executive Chairman, President and Chief Executive Officer.
2015 GAAP Financial Results
For the year ended Dec. 31, 2015, Verisign reported revenue of $1.06
billion, up 4.9 percent from $1.01 billion in 2014. Verisign reported
net income of $375 million and diluted EPS of $2.82 in 2015, compared to
net income of $355 million and diluted EPS of $2.52 in 2014. The
operating margin for 2015 was 57.2 percent compared to 55.9 percent in
2014.
As described in the fourth quarter of 2014 earnings news release, net
income for 2014 was decreased by $10 million and diluted EPS was
decreased by $0.07 primarily due to the fourth quarter of 2014 non-U.S.
income tax charge related to a reorganization of certain international
operations and changes in estimates during 2014 for U.S. income taxes
related to the 2013 worthless stock deduction and the 2014 repatriation
of offshore assets.
2015 Non-GAAP Financial Results
Verisign reported, on a non-GAAP basis, net income of $405 million and
diluted EPS of $3.05 for 2015, compared to net income of $383 million
and diluted EPS of $2.72 for 2014. The non-GAAP operating margin for
2015 was 61.5 percent compared to 60.2 percent for 2014.
Financial Highlights
-
Verisign ended 2015 with cash, cash equivalents and marketable
securities of $1.9 billion, an increase of $491 million as compared
with year-end 2014.
-
Cash flow from operations was $189 million for the fourth quarter of
2015 and $651 million for the full year 2015 compared with $170
million for the same quarter in 2014 and $601 million for the full
year 2014.
-
Deferred revenues on Dec. 31, 2015, totaled $961 million, an increase
of $71 million from year-end 2014.
-
Capital expenditures were $12 million in the fourth quarter and $41
million for the full year 2015.
-
During the fourth quarter, Verisign repurchased 1.8 million shares of
its common stock for $150 million. During the full year 2015, Verisign
repurchased 9.3 million shares of its common stock for $622 million.
-
Effective Feb. 11, 2016, the Board of Directors approved an additional
authorization for share repurchases of approximately $611 million of
common stock, which brings the total amount to $1 billion authorized
and available under Verisign’s share buyback program, which has no
expiration.
-
For purposes of calculating diluted EPS, the fourth quarter diluted
share count included 21.4 million shares related to subordinated
convertible debentures, compared with 14.7 million shares for the same
quarter in 2014. These represent diluted shares and not shares that
have been issued.
Business Highlights
-
Verisign Registry Services added 4.6 million net new names during the
fourth quarter, ending with 139.8 million .com and .net domain names
in the domain name base, which represents a 6.3 percent increase over
the base at the end of the fourth quarter in 2014, as calculated
including domain names on hold for both periods.
-
In the fourth quarter, Verisign processed 12.2 million new domain name
registrations for .com and .net, as compared to 8.2 million for the
same quarter in 2014.
-
The final .com and .net renewal rate for the third quarter of 2015 was
71.9 percent compared with 72.0 percent for the same quarter in 2014.
Renewal rates are not fully measurable until 45 days after the end of
the quarter.
Non-GAAP Financial Measures and Adjusted EBITDA
Verisign provides quarterly and annual financial statements that are
prepared in accordance with generally accepted accounting principles
(GAAP). Along with this information, management typically discloses and
discusses certain non-GAAP financial information in quarterly earnings
releases, on investor conference calls and during investor conferences
and related events. This non-GAAP financial information does not include
the following types of financial measures that are included in GAAP:
stock-based compensation, unrealized gain/loss on the contingent
interest derivative on the subordinated convertible debentures, and
non-cash interest expense. Non-GAAP net income is decreased by amounts
accrued, if any, during the period for contingent interest payable
resulting from upside or downside triggers related to the subordinated
convertible debentures and is adjusted for an income tax rate of 26
percent for 2015 and 28 percent for 2014, both of which differ from the
GAAP income tax rate.
On a quarterly basis, Verisign also provides Adjusted EBITDA. Adjusted
EBITDA is a non-GAAP financial measure and is calculated in accordance
with the terms of the indentures governing Verisign’s 4.625% senior
notes due 2023 and 5.25% senior notes due 2025. Adjusted EBITDA refers
to net income before interest, taxes, depreciation and amortization,
stock-based compensation, unrealized loss (gain) on the contingent
interest derivative on the subordinated convertible debentures and
unrealized loss (gain) on hedging agreements.
Management believes that this non-GAAP financial data supplements the
GAAP financial data by providing investors with additional information
that allows them to have a clearer picture of Verisign’s operations. The
presentation of this additional information is not meant to be
considered in isolation nor as a substitute for results prepared in
accordance with GAAP. Management believes that the non-GAAP information
enhances investors’ overall understanding of Verisign’s financial
performance and the comparability of Verisign’s operating results from
period to period.
The tables appended to this news release include a reconciliation of the
non-GAAP financial information to the comparable financial information
reported in accordance with GAAP for the given periods.
Today’s Conference Call
Verisign will host a live conference call today at 4:30 p.m. (EST) to
review the fourth quarter and full year 2015 results. The call will be
accessible by direct dial at (888) 676-VRSN (U.S.) or (913) 312-1460
(international), conference ID: Verisign. A listen-only live web cast of
the conference call and accompanying slide presentation will also be
available at https://investor.verisign.com.
An audio archive of the call will be available at https://investor.verisign.com/events.cfm.
This news release and the financial information discussed on today’s
conference call are available at https://investor.verisign.com.
About Verisign
Verisign, a global leader in domain names and Internet security, enables
Internet navigation for many of the world’s most recognized domain names
and provides protection for websites and enterprises around the world.
Verisign ensures the security, stability and resiliency of key Internet
infrastructure and services, including the .com and .net domains and two
of the Internet’s root servers, as well as performs the root-zone
maintainer functions for the core of the Internet’s Domain Name System
(DNS). Verisign’s Security Services include intelligence-driven
Distributed Denial of Service Protection, iDefense Security Intelligence
and Managed DNS. To learn more about what it means to be Powered by
Verisign, please visit Verisign.com.
VRSNF
Statements in this announcement other than historical data and
information constitute forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 as amended and Section 21E of
the Securities Exchange Act of 1934 as amended. These statements involve
risks and uncertainties that could cause our actual results to differ
materially from those stated or implied by such forward-looking
statements. The potential risks and uncertainties include, among others,
whether the U.S. Department of Commerce will approve any exercise by us
of our right to increase the price per .com domain name, under certain
circumstances, the uncertainty of whether we will be able to demonstrate
to the U.S. Department of Commerce that market conditions warrant
removal of the pricing restrictions on .com domain names and the
uncertainty of whether we will experience other negative changes to our
pricing terms; the failure to renew key agreements on similar terms, or
at all; new or existing governmental laws and regulations in the U.S. or
other applicable foreign jurisdictions; system interruptions; security
breaches; attacks on the Internet by hackers, viruses, or intentional
acts of vandalism; the uncertainty of the impact of the U.S.
government’s transition of key Internet domain name functions (the
Internet Assigned Numbers Authority (“IANA”) function) and related root
zone management functions, changes in Internet practices and behavior
and the adoption of substitute technologies; the success or failure of
the evolution of our target markets; the operational and other risks
from the introduction of new gTLDs by ICANN and our provision of
back-end registry services; the highly competitive business environment
in which we operate; whether we can maintain strong relationships with
registrars and their resellers to maintain their marketing focus on our
products and services; challenging global economic conditions; economic
and political risk associated with our international operations; our
ability to protect and enforce our rights to our intellectual property
and ensure that we do not infringe on others’ intellectual property; the
outcome of legal or other challenges resulting from our activities or
the activities of registrars or registrants, or litigation generally;
the impact of our new strategic initiatives, including our IDN gTLDs;
whether we can retain and motivate our senior management and key
employees; the impact of unfavorable tax rules and regulations; and our
ability to continue to reinvest offshore our foreign earnings. More
information about potential factors that could affect our business and
financial results is included in our filings with the SEC, including in
our Annual Report on Form 10-K for the year ended Dec. 31, 2014,
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Verisign
undertakes no obligation to update any of the forward-looking statements
after the date of this announcement.
©2016 VeriSign, Inc. All rights reserved. VERISIGN, the VERISIGN logo,
and other trademarks, service marks, and designs are registered or
unregistered trademarks of VeriSign, Inc. and its subsidiaries in the
United States and in foreign countries. All other trademarks are
property of their respective owners.
|
|
|
VERISIGN, INC.
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(In thousands, except par value)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2015
|
|
2014
|
|
ASSETS
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
228,659
|
|
|
$
|
191,608
|
|
|
Marketable securities
|
|
1,686,771
|
|
|
1,233,076
|
|
|
Accounts receivable, net
|
|
12,638
|
|
|
13,448
|
|
|
Other current assets
|
|
39,856
|
|
|
41,658
|
|
|
Total current assets
|
|
1,967,924
|
|
|
1,479,790
|
|
|
Property and equipment, net
|
|
295,570
|
|
|
319,028
|
|
|
Goodwill
|
|
52,527
|
|
|
52,527
|
|
|
Deferred tax assets
|
|
17,361
|
|
|
33,887
|
|
|
Other long-term assets
|
|
24,355
|
|
|
15,918
|
|
|
Total long-term assets
|
|
389,813
|
|
|
421,360
|
|
|
Total assets
|
|
$
|
2,357,737
|
|
|
$
|
1,901,150
|
|
|
LIABILITIES AND STOCKHOLDERS’ DEFICIT
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
$
|
188,171
|
|
|
$
|
190,278
|
|
|
Deferred revenues
|
|
680,483
|
|
|
621,307
|
|
|
Subordinated convertible debentures, including contingent interest
derivative
|
|
634,326
|
|
|
620,620
|
|
|
Total current liabilities
|
|
1,502,980
|
|
|
1,432,205
|
|
|
Long-term deferred revenues
|
|
280,859
|
|
|
269,047
|
|
|
Senior notes
|
|
1,235,354
|
|
|
740,175
|
|
|
Deferred tax liabilities
|
|
294,194
|
|
|
244,467
|
|
|
Other long-term tax liabilities
|
|
114,797
|
|
|
98,722
|
|
|
Total long-term liabilities
|
|
1,925,204
|
|
|
1,352,411
|
|
|
Total liabilities
|
|
3,428,184
|
|
|
2,784,616
|
|
|
Commitments and contingencies
|
|
|
|
|
|
Stockholders’ deficit:
|
|
|
|
|
|
Preferred stock—par value $.001 per share; Authorized shares: 5,000;
Issued and outstanding shares: none
|
|
—
|
|
|
—
|
|
|
Common stock—par value $.001 per share; Authorized shares:
1,000,000; Issued shares: 322,990 at December 31, 2015 and 321,699
at December 31, 2014; Outstanding shares: 110,072 at December 31,
2015 and 118,452 at December 31, 2014
|
|
323
|
|
|
322
|
|
|
Additional paid-in capital
|
|
17,558,822
|
|
|
18,120,045
|
|
|
Accumulated deficit
|
|
(18,625,599
|
)
|
|
(19,000,835
|
)
|
|
Accumulated other comprehensive loss
|
|
(3,993
|
)
|
|
(2,998
|
)
|
|
Total stockholders’ deficit
|
|
(1,070,447
|
)
|
|
(883,466
|
)
|
|
Total liabilities and stockholders’ deficit
|
|
$
|
2,357,737
|
|
|
$
|
1,901,150
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VERISIGN, INC.
|
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
|
(In thousands, except per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Year Ended December 31,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Revenues
|
|
$
|
272,625
|
|
|
$
|
255,917
|
|
|
$
|
1,059,366
|
|
|
$
|
1,010,117
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
48,996
|
|
|
47,477
|
|
|
192,788
|
|
|
188,425
|
|
|
Sales and marketing
|
|
22,507
|
|
|
23,757
|
|
|
90,184
|
|
|
92,001
|
|
|
Research and development
|
|
15,200
|
|
|
17,324
|
|
|
63,718
|
|
|
67,777
|
|
|
General and administrative
|
|
27,640
|
|
|
25,138
|
|
|
106,730
|
|
|
97,487
|
|
|
Total costs and expenses
|
|
114,343
|
|
|
113,696
|
|
|
453,420
|
|
|
445,690
|
|
|
Operating income
|
|
158,282
|
|
|
142,221
|
|
|
605,946
|
|
|
564,427
|
|
|
Interest expense
|
|
(28,567
|
)
|
|
(21,586
|
)
|
|
(107,631
|
)
|
|
(85,994
|
)
|
|
Non-operating (loss) income, net
|
|
(4,336
|
)
|
|
(159
|
)
|
|
(10,665
|
)
|
|
4,878
|
|
|
Income before income taxes
|
|
125,379
|
|
|
120,476
|
|
|
487,650
|
|
|
483,311
|
|
|
Income tax expense
|
|
(23,849
|
)
|
|
(55,004
|
)
|
|
(112,414
|
)
|
|
(128,051
|
)
|
|
Net income
|
|
101,530
|
|
|
65,472
|
|
|
375,236
|
|
|
355,260
|
|
|
Realized foreign currency translation adjustments, included in net
income
|
|
—
|
|
|
—
|
|
|
(291
|
)
|
|
—
|
|
|
Unrealized (loss) gain on investments
|
|
(1,318
|
)
|
|
50
|
|
|
(519
|
)
|
|
84
|
|
|
Realized (gain) loss on investments, included in net income
|
|
(86
|
)
|
|
1
|
|
|
(185
|
)
|
|
3
|
|
|
Other comprehensive (loss) income
|
|
(1,404
|
)
|
|
51
|
|
|
(995
|
)
|
|
87
|
|
|
Comprehensive income
|
|
$
|
100,126
|
|
|
$
|
65,523
|
|
|
$
|
374,241
|
|
|
$
|
355,347
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.92
|
|
|
$
|
0.54
|
|
|
$
|
3.29
|
|
|
$
|
2.80
|
|
|
Diluted
|
|
$
|
0.76
|
|
|
$
|
0.48
|
|
|
$
|
2.82
|
|
|
$
|
2.52
|
|
|
Shares used to compute earnings per share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
110,952
|
|
|
120,140
|
|
|
114,155
|
|
|
126,710
|
|
|
Diluted
|
|
133,385
|
|
|
135,899
|
|
|
133,031
|
|
|
140,895
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VERISIGN, INC.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(In thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2015
|
|
2014
|
|
Cash flows from operating activities:
|
|
|
|
|
|
Net income
|
|
$
|
375,236
|
|
|
$
|
355,260
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
Depreciation of property and equipment
|
|
61,491
|
|
|
63,690
|
|
|
Stock-based compensation
|
|
46,075
|
|
|
43,977
|
|
|
Excess tax benefit associated with stock-based compensation
|
|
(18,464
|
)
|
|
(6,054
|
)
|
|
Unrealized loss (gain) on contingent interest derivative on
Subordinated Convertible Debentures
|
|
14,130
|
|
|
(2,249
|
)
|
|
Payment of contingent interest
|
|
(10,759
|
)
|
|
—
|
|
|
Amortization of debt discount and issuance costs
|
|
12,292
|
|
|
10,878
|
|
|
Other, net
|
|
(1,781
|
)
|
|
480
|
|
|
Changes in operating assets and liabilities
|
|
|
|
|
|
Accounts receivable
|
|
661
|
|
|
(73
|
)
|
|
Prepaid expenses and other assets
|
|
(1,728
|
)
|
|
11,571
|
|
|
Accounts payable and accrued liabilities
|
|
21,013
|
|
|
45,419
|
|
|
Deferred revenues
|
|
70,988
|
|
|
34,518
|
|
|
Net deferred income taxes and other long-term tax liabilities
|
|
82,328
|
|
|
43,532
|
|
|
Net cash provided by operating activities
|
|
651,482
|
|
|
600,949
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
Proceeds from maturities and sales of marketable securities and
investments
|
|
2,767,027
|
|
|
3,428,659
|
|
|
Purchases of marketable securities
|
|
(3,219,329
|
)
|
|
(3,277,096
|
)
|
|
Purchases of property and equipment
|
|
(40,656
|
)
|
|
(39,327
|
)
|
|
Other investing activities
|
|
(3,941
|
)
|
|
452
|
|
|
Net cash (used in) provided by investing activities
|
|
(496,899
|
)
|
|
112,688
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
Proceeds from issuance of common stock from option exercises and
employee stock purchase plans
|
|
14,690
|
|
|
17,597
|
|
|
Repurchases of common stock
|
|
(643,169
|
)
|
|
(883,403
|
)
|
|
Proceeds from borrowings, net of issuance costs
|
|
492,237
|
|
|
—
|
|
|
Excess tax benefit associated with stock-based compensation
|
|
18,464
|
|
|
6,054
|
|
|
Net cash used in financing activities
|
|
(117,778
|
)
|
|
(859,752
|
)
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
246
|
|
|
(1,500
|
)
|
|
Net increase (decrease) in cash and cash equivalents
|
|
37,051
|
|
|
(147,615
|
)
|
|
Cash and cash equivalents at beginning of period
|
|
191,608
|
|
|
339,223
|
|
|
Cash and cash equivalents at end of period
|
|
$
|
228,659
|
|
|
$
|
191,608
|
|
|
Supplemental cash flow disclosures:
|
|
|
|
|
|
Cash paid for interest, net of capitalized interest
|
|
$
|
99,473
|
|
|
$
|
75,088
|
|
|
Cash paid for income taxes, net of refunds received
|
|
$
|
39,723
|
|
|
$
|
35,201
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VERISIGN, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(In thousands, except per share data)
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
|
2015
|
|
2014
|
|
|
|
Operating
|
|
|
|
Operating
|
|
|
|
|
|
Income
|
|
Net Income
|
|
Income
|
|
Net Income
|
|
GAAP as reported
|
|
$
|
158,282
|
|
|
$
|
101,530
|
|
|
$
|
142,221
|
|
|
$
|
65,472
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
11,724
|
|
|
11,724
|
|
|
9,696
|
|
|
9,696
|
|
|
Unrealized loss on contingent interest derivative on the
subordinated convertible debentures
|
|
|
|
5,072
|
|
|
|
|
1,704
|
|
|
Non-cash interest expense
|
|
|
|
3,091
|
|
|
|
|
2,641
|
|
|
Contingent interest payable on subordinated convertible debentures
|
|
|
|
(3,272
|
)
|
|
|
|
(2,613
|
)
|
|
Tax adjustment
|
|
|
|
(13,070
|
)
|
|
|
|
18,071
|
|
|
Non-GAAP
|
|
$
|
170,006
|
|
|
$
|
105,075
|
|
|
$
|
151,917
|
|
|
$
|
94,971
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
272,625
|
|
|
|
|
$
|
255,917
|
|
|
|
|
Non-GAAP operating margin
|
|
62.4
|
%
|
|
|
|
59.4
|
%
|
|
|
|
Diluted shares
|
|
|
|
133,385
|
|
|
|
|
135,899
|
|
|
Diluted EPS, non-GAAP
|
|
|
|
$
|
0.79
|
|
|
|
|
$
|
0.70
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2015
|
|
2014
|
|
|
|
Operating
|
|
|
|
Operating
|
|
|
|
|
|
Income
|
|
Net Income
|
|
Income
|
|
Net Income
|
|
GAAP as reported
|
|
$
|
605,946
|
|
|
$
|
375,236
|
|
|
$
|
564,427
|
|
|
$
|
355,260
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
46,075
|
|
|
46,075
|
|
|
43,977
|
|
|
43,977
|
|
|
Unrealized (gain) loss on contingent interest derivative on the
subordinated convertible debentures
|
|
|
|
14,130
|
|
|
|
|
(2,249
|
)
|
|
Non-cash interest expense
|
|
|
|
11,746
|
|
|
|
|
10,223
|
|
|
Contingent interest payable on subordinated convertible debentures
|
|
|
|
(11,749
|
)
|
|
|
|
(3,919
|
)
|
|
Tax adjustment
|
|
|
|
(30,028
|
)
|
|
|
|
(20,725
|
)
|
|
Non-GAAP
|
|
$
|
652,021
|
|
|
$
|
405,410
|
|
|
$
|
608,404
|
|
|
$
|
382,567
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
1,059,366
|
|
|
|
|
$
|
1,010,117
|
|
|
|
|
Non-GAAP operating margin
|
|
61.5
|
%
|
|
|
|
60.2
|
%
|
|
|
|
Diluted shares
|
|
|
|
133,031
|
|
|
|
|
140,895
|
|
|
Diluted EPS, non-GAAP
|
|
|
|
$
|
3.05
|
|
|
|
|
$
|
2.72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VERISIGN, INC.
RECONCILIATION OF NON-GAAP ADJUSTED EBITDA
(In
thousands)
(Unaudited)
|
|
|
|
The following table reconciles GAAP net income to non-GAAP
Adjusted EBITDA for the periods shown below (in thousands):
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
|
2015
|
|
2014
|
|
Net Income
|
|
$
|
101,530
|
|
|
$
|
65,472
|
|
|
Interest expense
|
|
28,567
|
|
|
21,586
|
|
|
Income tax expense
|
|
23,849
|
|
|
55,004
|
|
|
Depreciation and amortization
|
|
14,937
|
|
|
15,767
|
|
|
Stock-based compensation
|
|
11,724
|
|
|
9,696
|
|
|
Unrealized loss on contingent interest derivative on the
subordinated convertible debentures
|
|
5,072
|
|
|
1,704
|
|
|
Unrealized loss (gain) on hedging agreements
|
|
84
|
|
|
(267
|
)
|
|
Non-GAAP Adjusted EBITDA
|
|
$
|
185,763
|
|
|
$
|
168,962
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2015
|
|
Net Income
|
|
$
|
375,236
|
|
|
Interest expense
|
|
107,631
|
|
|
Income tax expense
|
|
112,414
|
|
|
Depreciation and amortization
|
|
61,491
|
|
|
Stock-based compensation
|
|
46,075
|
|
|
Unrealized loss on contingent interest derivative on the
subordinated convertible debentures
|
|
14,130
|
|
|
Unrealized loss on hedging agreements
|
|
95
|
|
|
Non-GAAP Adjusted EBITDA
|
|
$
|
717,072
|
|
|
|
|
|
|
|
|
|
|
VERISIGN, INC.
|
|
STOCK-BASED COMPENSATION CLASSIFICATION
|
|
(In thousands)
|
|
(Unaudited)
|
|
|
|
The following table presents the classification of stock-based
compensation:
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Year Ended
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Cost of revenues
|
|
$
|
1,807
|
|
|
$
|
1,652
|
|
|
$
|
7,009
|
|
|
$
|
6,400
|
|
Sales and marketing
|
|
1,963
|
|
|
2,121
|
|
|
6,763
|
|
|
8,023
|
|
Research and development
|
|
1,598
|
|
|
1,829
|
|
|
6,488
|
|
|
7,018
|
|
General and administrative
|
|
6,356
|
|
|
4,094
|
|
|
25,815
|
|
|
22,536
|
|
Total stock-based compensation expense
|
|
$
|
11,724
|
|
|
$
|
9,696
|
|
|
$
|
46,075
|
|
|
$
|
43,977
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160211006258/en/
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