VeriSign Inc VRSN
Q2 2010 Earnings Call Transcript

Transcript Call Date 08/02/2010

Operator: Good day and welcome to the VeriSign Second Quarter 2010 Earnings Call. This call is being recorded.

At this time, I would like to turn the conference over to Nancy Fazioli, Director of Investor Relations. Please go ahead, ma'am.

Nancy Fazioli - IR: Thank you, operator. Good afternoon, everyone, and thank you for joining us for VeriSign's second quarter 2010 earnings conference call. I am Nancy Fazioli, Director of Investor Relations, and I'm here today with Mark McLaughlin, President and CEO; and Brian Robins, Executive Vice President and CFO.

Please note that this call and accompanying slide presentation are being webcast from our Investor Relations website located at Please refer to our website for important information including the Q2 2010 earnings press release. A replay of this call will be available on our website within a few hours.

Today's slide presentation will also be available for download after the call. Financial results in today's press release are unaudited and the matters we will be discussing today include forward-looking statements and as such are subject to the risks and uncertainties that we discussed in detail on our documents filed with the SEC, specifically the most recent report on forms 10-K and 10-Q, and any applicable amendments which identify important risk factors that could cause actual results to differ materially from those contained in the forward-looking statements.

I would like to remind you that in light of Regulation FD, VeriSign retains its longstanding policy to not comment on financial performance or guidance during the quarter, unless it is done through a public disclosure.

The financial results in today's press release and the matters we'll be discussing today include non-GAAP measures used by VeriSign. GAAP to non-GAAP reconciliation information is appended to our press release and slide presentation, both of which can be found on our Investor Relations website.

In a moment, Mark and Brian will provide some prepared remarks, and afterwards we will open up the call for your questions. Unauthorized recording of this conference call is not permitted.

With that, I would like to turn the call over to Mark. Mark?

Mark D. McLaughlin - President and CEO: Thanks, Nancy. Good afternoon, everyone. Q2 was good quarter for us. Both our Naming Services and Authentication businesses performed well as we continued to see favorable economic and internet trends. But before I discuss our quarterly results I want to touch on some other highlights from the quarter.

First, as you know, on May 19, we announced a definitive agreement to sell the Authentication Services business to Symantec with an expected close to the transaction within 90 days of that day. We're on track to close within this timeframe.

Second we have an update on the status of the case filed against VeriSign by the Coalition for ICANN Transparency or CFIT. As we reported in an 8-K that we filed on July 9, U.S. Court of Appeals for the Ninth Circuit denied VeriSign's motion for rehearing, which means that CFIT complaint VeriSign can proceed. The denial is based on the application of law and not the merits of the case. In our view, the amended opinion changes in two respects, the Court’s earlier decision. First, the Court of Appeals changes opinion by explaining that, for purposes of reviewing the sufficiency of the complaint, it was not considering the role of the U.S. government in 2006 agreement. Second, the amended opinion clarified the earlier decisions by explaining that competitive bidding is not required as a predicate complying with the antitrust laws. Procedurally, we have two options at this point in 90 days to make the decision of which to pursue.

Read our Earnings Call Transcript disclaimer.
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