VeriSign down on Q2 loss

Shares of VeriSign Inc. dipped after the company posted a decline in second-quarter revenues and issued weak guidance for the coming quarter.
The Mountain View, Calif.-based digital infrastructure company reported a net loss of $4.71 million on total revenue of $368 million, down from a profit of $376.8 million on $387.8 million in revenue during the year-ago period. The company enjoyed tax benefits of $327 million and a charge of $13.2 million in stock-option expenses during the second quarter of 2006.
VeriSign’s adjusted profit was in line with Wall Street expectations at 25 cents a share, but the company’s overall quarterly revenue fell just shy of estimates.
Jamba, the mobile content aggregator in which VeriSign holds a 49% stake, rang up about $4.4 million during the period. Rupert Murdoch’s News Corp. bought 51% of Jamba last year, and is integrating the business with its Fox Mobile operation.
“We are generally pleased with our second-quarter performance,” VeriSign CEO Bill Roper said. “These results indicate that the benefits of the company-wide reorganization initiated at the first of the year are beginning to impact our operational and financial performance.”
Shares of VeriSign fell 74 cents, or more than 2%, to trade at $30.05 after the news.