VeriSign Announces Delay in Filing Its Second
Quarter 10-Q
MOUNTAIN VIEW, CA – August 9, 2006 – VeriSign, Inc. (Nasdaq:
VRSN), the leading provider of intelligent infrastructure services for
the Internet and telecommunications networks, today
announced that it will delay the filing of its Form 10-Q for the second
quarter ended June 30, 2006 and has filed a Form 12b-25 with the Securities
and Exchange Commission (SEC) that extends the due date for its Form
10-Q for the second quarter to August 14, 2006. The delay is necessary
due to the ongoing status of the previously announced independent review
of VeriSign’s historical stock option grants. Until the independent
review is completed, VeriSign will not be able to file its Form 10-Q.
VeriSign intends to file its Form 10-Q as soon as practicable after
the independent review is completed, but does not expect the filing
will be made by the August 14, 2006 extended deadline.
On June 26, 2006, VeriSign received a grand jury subpoena
from the U.S. Attorney for the Northern District of California requesting
documents relating to VeriSign's stock option grants and practices.
VeriSign is cooperating fully with the U.S. Attorney's Office in connection
with this subpoena. VeriSign has also received an informal inquiry
from the Securities and Exchange Commission requesting documents related
to VeriSign's stock option grants and practices. VeriSign is voluntarily
responding to this request and is cooperating fully with the Securities
and Exchange Commission. On July 6, 2006, a stockholder derivative
complaint was filed against VeriSign and certain of its present and former
directors and executive officers related to certain stock option grants
in 1998, 2000 and 2001. VeriSign is named as a nominal defendant in
this action. The complaint seeks unspecified damages on behalf of VeriSign,
constructive trust and other equitable relief.
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.
Contacts
Media Relations: Brian O’Shaughnessy, boshaughnessy@verisign.com,
650-426-5270
Investor Relations: Tom McCallum, tmccallum@verisign.com,
650-426-3744
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This announcement contains
forward-looking statements which include those regarding the possibility
that the stock option review could require us to change our accounting
treatment of stock options granted in prior periods and the anticipated
timing for VeriSign's filing of its Form 10-Q for the second quarter
of 2006. 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. In particular, VeriSign
may be required to make adjustments to its unaudited preliminary second
quarter results, as well to its financial results previously reported
for prior periods, as a result of its ongoing investigation into its
stock option grant practices. Those adjustments may have a material
adverse effect on our results of operations for those periods.
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 statements after the date of this press release.
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