VeriSign Confirms Reasons for Expected Restatement
of Previously Issued Financial Statements
MOUNTAIN VIEW, CA, Nov. 22, 2006 –VeriSign, Inc. (NASDAQ: VRSN)
announced on November 21, 2006 that it has determined the need to restate
its historical financial statements for the years and interim periods
from 2001-2005 and for the first quarter of 2006 to record additional
non-cash, stock-based compensation expense related to past stock option
grants. VeriSign confirmed today that the reasons for this determination
are that it has identified certain grants with incorrect measurement
dates, without required documentation, or with initial grant dates and
prices that were subsequently modified. Based on the findings
to date, the non-cash charge to the financial statements for the periods
2001 - 2005 is not expected to exceed $250 million; however, the investigation
is still on-going.
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.
VRSNF
Contacts
Media Relations: Lisa Malloy, emalloy@verisign.com
, 202-270-7600
Investor Relations: Nancy Fazioli, ir@verisign.com
, 650-426-5146
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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 fact that the Board’s independent
review and Securities and Exchange Commission (SEC) inquiry relating
to the Company’s historical stock option grants and practices are ongoing,
that the independent review and SEC inquiry may require further adjustments
to the Company’s financial statements and that VeriSign cannot predict
with certainty when it may be able to file any future SEC reports; the
risk that proper accounting of any adjustments to the Company’s financial
statements resulting from the independent review and SEC inquiry as
finally determined by the Board, KPMG LLP and/or the SEC may differ
from the accounting treatment upon which the assumptions and forward
looking statements in this announcement are based; uncertainty regarding
the tax treatment of any adjustments to the Company’s financial statements
as a result of the independent review and SEC inquiry; uncertainty that
the Nasdaq Listing Qualifications Panel will grant a favorable decision
regarding a possible delisting of the Company’s common stock, and, if
an unfavorable decision is rendered, VeriSign’s common stock will no
longer continue to remain listed on the Nasdaq Global Market; the risk
that the matters described in this press release could divert
management's attention from operations; and the fact that expenses arising
from the independent review and SEC inquiry, the restatement, related
litigation and other associated activities are expected to be significant.
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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