VeriSign Announces Mother’s Day-Period Online
Shopping Activity
Jewelry Posts 79 Percent Increase, Far Outstripping Other Categories
MOUNTAIN VIEW, CA. – May 10, 2005 - VeriSign, Inc. (Nasdaq:
VRSN), the leading provider of intelligent infrastructure services for
the Internet and telecommunications networks, today released new e-commerce
data showing that Mother’s Day-related purchases accounted for $4.4
billion in online sales. VeriSign analyzed online shopping data from
April 25 through May 8, 2005, with research indicating an increase in
online spending activity of 24 percent as compared to the equivalent
time period in 2004 (April 26 through May 9). During this period,
the jewelry category showed a 79 percent increase, far outstripping
other traditional Mother Day’s categories, such as flowers and candy.
“Mother’s Day has arrived as one of our larger retail
holidays. Where once this holiday would have been acknowledged
with a phone call and a heartfelt card, we’re increasingly seeing people
using it as an opportunity to send expensive items, such as a necklace
pendant,” said Trevor Healy, vice president, Payment Services, VeriSign.
“Online retailers increasingly count on VeriSign to reliably process
their transactions. As such, we will continue to have unique insight
into consumer spending habits for this holiday and other major retail
events.”
The latest statistics from VeriSign are based on the
analysis of online sales volume processed through VeriSign Payment Services,
which comprises more than 37 percent of all North American e-commerce,
and represents in excess of 135,000 online retailers.
Full Category Comparisons
VeriSign tracks year-over-year merchant activity in key e-commerce
categories. Significant findings in regard to online shopping activity
for Mother’s Day include the following figures from Sunday, April 25,
2005 through Sunday, May 8, 2005, as compared to the equivalent time
period in 2004 (Sunday, April 26 through Sunday, May 9):
- Online spending for the jewelry category increased 79 percent in 2005 as compared to the same
time period in 2004. Spending in the diamonds subcategory was up 101
percent, with a whopping increase of 540 percent in transaction activity.
The diamonds category held an average purchase price of $517.
- Online spending for the candy category was flat in 2005 as compared
to the same time period in 2004. Chocolates accounted for 56 percent
of the category period sales, with overall spending on this particular
item up 35 percent as compared to the same time period in 2004.
- Online spending for the flower category decreased 13 percent in
2005 as compared to the same time period in 2004. Transaction activity
remained flat.
Spending Patterns
- Overall transaction activity
totaled 54.8 million transactions, representing more than a 31 percent
increase from the activity recorded in the prior year period.
- Monday, May 2, 2005 was the
peak online shopping day during the period, accounting for 5.43 million
transactions and $473 million dollars.
VeriSign has a unique ability to correlate intelligence
gathered across the Internet, which enables the company to identify
market trends such as changes in Internet shopping patterns that may
impact vendors with an online presence. As such, in addition to reporting
on online shopping activity related to Mother’s Day, VeriSign also issued
data throughout December 2004 regarding e-commerce statistics during
the holiday shopping season. Earlier research, as well as guidance for
consumers on how to shop safely online and for merchants on how to effectively
secure their e-commerce sites, can be found at: www.verisignsecured.com.
About VeriSign
VeriSign, Inc. (Nasdaq: VRSN), operates intelligent infrastructure services
that enable individuals and businesses to find, connect, secure, and
transact across today’s complex global networks. Additional news and
information about the company is available at www.verisign.com.
For more information, contact:
VeriSign Media Relations: Brendan P. Lewis, brlewis@verisign.com,
650-426-4470
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 ability
of VeriSign to successfully develop and market new services and customer
acceptance of any new services; the risk that VeriSign's announced strategic
relationships may not result in additional products, services, customers
and revenues; 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, 2004 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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