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Press Release |
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VeriSign Refines Strategic Direction to Focus on Internet Infrastructure
Strategy Broadens Footprint in Core Businesses and Returns to DNA
New York, NY, November 14, 2007 – VeriSign, Inc., the leading
provider of Internet infrastructure services for the networked world,
unveiled new details about the company’s strategic direction for 2008
at their annual analyst day held today in New York. VeriSign’s business
strategy moving forward will be more tightly aligned with its core competency—providing
highly scaleable, reliable and secure Internet infrastructure services
to customers around the world.
The strategy will call for divesture of a number of
businesses in the company’s portfolio, such as communications, billing
and commerce. This will allow VeriSign to invest more in extending the
footprint of its core businesses, such as web certificates (SSL) and
the Internet Registry Business (VeriSign Naming Services), and developing
closely aligned growth opportunities, such as identity protection services.
“The combination of focus and disciplined execution
will provide the foundation we need to generate improved shareholder
returns,” says Bill Roper, CEO. “We have leadership positions in great
businesses with high growth, attractive economic returns and significant
barriers to entry.”
VeriSign will focus human and financial resources
to grow the following businesses:
- Naming Services: VeriSign operates
the .com, .net and .tv Internet suffixes. In 2008, Naming programs and
services will focus on providing tools to customers which will grow
the existing lines of business, new top level domain-like opportunities,
and new programs internationally.
- Web Certificates: Better known
as Secure Sockets Layer (SSL) Certificates that secure transmissions
on the Internet, including the recently introduced Extended Validation
(EV) SSL Certificate.
- Identity Protection Services: The
VeriSign Identity Protection (VIP) Service is a comprehensive suite
of identity protection and authentication services designed to strengthen
and protect consumers' digital identities.
”VeriSign's new strategy demonstrates a clear commitment
to become a highly focused, more profitable company operating at the
core of the Internet," said Will Stofega of IDC. "By divesting
some non-core assets, VeriSign will also return to its heritage, with
a high-margin, recurring revenue business model that will position it
for future market success."
About VeriSign
VeriSign, Inc. (NASDAQ: VRSN), operates intelligent infrastructure services
that enable and protect billions of interactions every day across the
world’s voice and data networks. Additional news and information about
the company is available at www.verisign.co.uk.
Statements in this announcement other than historical
data and information constitute forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. These statements involve risks
and uncertainties that could cause VeriSign's actual results to differ
materially from those stated or implied by such forward-looking statements.
The potential risks and uncertainties include, among others, the uncertainty
of future revenue and profitability; potential fluctuations in quarterly
operating results; the effect of VeriSign’s new strategic focus and
business divestitures; and increased competition and pricing pressures.
More information about potential factors that could affect the company's
business and financial results is included in VeriSign's filings with
the Securities and Exchange Commission, including in the company's Annual
Report on Form 10-K for the year ended December 31, 2006 and quarterly
reports on Form 10-Q. VeriSign undertakes no obligation to update any
of the forward-looking statements after the date of this press release.
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