MOUNTAIN VIEW, Calif.—VeriSign Inc.’s direct-to-consumer mobile content business continues to erode.
The company reported $77 million in revenues from its Jamba and Jamster businesses during the first quarter, down 32 percent from the fourth quarter of 2005. While the decline in revenue was expected—the company had predicted $70 million to $75 million for the quarter—it marked the third straight quarterly slide.
Overall, the Internet security and services provider posted earnings of $15.7 million, down from $49.2 million during the year-ago period; revenue for the quarter fell 3.5 percent to $373.6 million from $387.3 million.
VeriSign said much of the declining earnings can be attributed to the movement of the company’s SMS and MMS units out of the content division and into the communications and commerce group. The units accounted for a combined $15 million in revenue during the quarter.
Research firm Stifel Nicolaus downgraded the company from buy to hold, however, and shares of VeriSign slid $1.15 to $24.24 following the report.
