VeriSign, Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2017; Provides Earnings Guidance for the Year 2018 and Provides Tax Rate Guidance for the First Quarter of 2018
February 08, 2018 at 04:05 pm EST
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VeriSign, Inc. reported unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2017. For the quarter, the company's revenues were $295,501,000 compared to $286,271,000 a year ago. Operating income was $176,432,000 compared to $168,762,000 a year ago. Income before income taxes was $142,047,000 compared to $141,853,000 a year ago. Net income was $102,837,000 or $0.83 per diluted share compared to $105,552,000 or $0.84 per diluted share a year ago. Non-GAAP operating income was $189,296,000 compared to $183,061,000 a year ago. Non-GAAP net income was $119,072,000 or $0.96 per diluted share compared to $115,249,000 or $0.92 per diluted share a year ago. Non-GAAP adjusted EBITDA was $207,634,000 compared to $199,081,000 a year ago. Cash flow from operations was $199 million against $205 million a year ago.
For the year, the company's revenues were $1,165,095,000 compared to $1,142,167,000 a year ago. Operating income was $707,722,000 compared to $686,572,000 a year ago. Income before income taxes was $599,012,000 compared to $581,173,000 a year ago. Net income was $457,248,000 or $3.68 per diluted share compared to $440,645,000 or $3.42 per diluted share a year ago. Net cash provided by operating activities was $702,761,000 compared to $693,007,000 a year ago. Purchases of property and equipment was $49,499,000 compared to $26,574,000 a year ago. Non-GAAP operating income was $760,629,000 compared to $736,616,000 a year ago. Non-GAAP net income was $491,929,000 or $3.96 per diluted share compared to $464,691,000 or $3.61 per diluted share a year ago. Non-GAAP adjusted EBITDA was $828,862,000. Free cash flow was $653 million in 2017.
With respect to full year 2018 guidance, revenue is expected to be in the range of $1,195,000,000 to $1,215,000,000. Non-GAAP operating margin is expected to be between 65.5% and 66.5%. non-GAAP interest expense and non-GAAP non-operating income net is expected to be an expense of between $115 million and $122 million. Capital expenditures are expected to be between $45 million and $55 million.
The company believes a more reasonable estimate of the tax rate to calculate non-GAAP net income and non-GAAP earnings per share is 22%. As a result, the company will begin to use 22% non-GAAP tax rate when reporting first quarter 2018 non-GAAP results.
VeriSign, Inc. is one of the main world leading computer services firms specializing in securing Internet and telecommunication infrastructures. The group offers domain name registration services as well as infrastructure maintenance services intended primarily for defense organizations.
Sales break down geographically as follows: the United States (65.8%), Europe/Middle East/Africa (15.9%), China (7.4%) and other (10.9%).
VeriSign, Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2017; Provides Earnings Guidance for the Year 2018 and Provides Tax Rate Guidance for the First Quarter of 2018