MOUNTAIN VIEW, Calif.-VeriSign Inc. posted a strong third quarter despite disappointing revenues from its mobile content business.
The Internet security company reported quarterly income of $44.6 million, or 17 cents a share, up from $40.4 million, or 16 cents a share, in the same period of 2004. Earnings per share were in line with Wall Street estimates, and the company’s total revenue of $415 million exceeded analysts’ expectations by $6 million.
Total revenue was down significantly, though, from the company’s original projections of $435 million to $440 million.
But VeriSign saw its mobile content business generate only $131 million during the period, down 25 percent from the previous quarter. The company sells mobile content directly to consumers through its Jamba! and Jamster! Internet storefronts.
“Although the short-term trends have proven difficult to forecast, we continue to be excited about the long-term opportunity in mobile content and believe that we are strongly positioned as the leading global platform for these services,” said Stratton Sclavos, VeriSign’s chairman and chief executive officer.
The figures mark the second straight disappointing quarter for the company’s mobile content division, which grew quickly but recently has plateaued. Jamba! and Jamster!, which have been buffeted by complaints from consumer advocates and watchdog agencies, grew only 15 percent between the first and second quarters.
The company said it hopes to reverse the recent trends by expanding into new markets in Eastern Europe and Latin America. VeriSign shares were up $1.12 to $22.36 in mid-day trading Thursday on the Nasdaq following the report, which was released after Wednesday’s closing bell.
