back
MOUNTAIN VIEW, CA – May 23, 2006 – VeriSign, Inc. (Nasdaq: VRSN), the leading provider of intelligent infrastructure services for the Internet and telecommunications networks, today announced that its Board of Directors has authorized a new $1 billion stock repurchase program effective immediately. The company intends, from time to time, as business conditions warrant, to purchase common stock on the open market or in negotiated or block trades. No time limit was set for completion of the program.
The VeriSign Board of Directors decided to pursue this course of action after a review of the Company’s financial position and investment alternatives. A portion of the repurchase shares may be used for the Company’s employee benefit plans, and the balance will be available for other general corporate purposes.
“Strong cash flow across our businesses has allowed us to repurchase over $600 million of VeriSign common stock over the last twelve months” said Stratton Sclavos, Chairman and CEO of VeriSign. “We expect these cash flow trends to continue for the foreseeable future and the board of directors believes that this expanded repurchase program will drive further shareholder value.”
The 2006 program succeeds the 2005 program authorized by the Board of Directors in August 2005 to repurchase up to $500 million of VeriSign common stock. At March 31, 2006, $45 million remained available for repurchases under the 2005 program.
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.com
For more information, contact:
VeriSign Media Relations: Brian O’Shaughnessy, boshaughnessy@verisign.com,
650-426-5270
VeriSign Investor Relations: Tom McCallum, tmccallum@verisign.com,
650-426-3744
# # #
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 and potential fluctuations in quarterly operating results due to such factors as increasing competition and pricing pressure from competing services offered at prices below our prices and market acceptance of our existing services, the inability of VeriSign to successfully develop and market new services and the uncertainty of whether new services as provided by VeriSign will achieve market acceptance or result in any revenues and the risk that the VeriSign and its acquired businesses will not be integrated successfully and unanticipated costs of such integration. 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, 2005 and quarterly reports on Form 10-Q. VeriSign undertakes no obligation to update any of the forward-looking statement after the date of this press release.