VeriSign Reports Second Quarter Results in Line With Prior Guidance

VeriSign, Inc. (NASDAQ: VRSN), the leading provider of digital infrastructure for the networked world, today reported financial results for the second quarter ended June 30, 2007.

VeriSign reported total revenue of $368 million for the second quarter of 2007. These results include $4 million of revenue related to the Jamba Services business that is held for sale and which is reported under discontinued operations on the statements of operation. On a GAAP basis, VeriSign reported a net loss of $5 million for the second quarter of 2007 and a net loss per share of $0.02 per fully-diluted share.

On a non-GAAP basis, VeriSign reported net income of $62 million for the second quarter of 2007 and earnings per share of $0.25 per diluted share. A table reconciling the GAAP to non-GAAP net income reported above is appended to this release.

"We are generally pleased with our second quarter performance," said Bill Roper, president and chief executive officer of VeriSign. "These results indicate that the benefits of the company-wide reorganization initiated at the first of the year are beginning to impact our operational and financial performance. We are focusing on more discipline in our business processes and the growth opportunities that we see for the remainder of this year and into the next."

"Our second quarter results demonstrate solid financial execution," said Bert Clement, chief financial officer of VeriSign. "Strong growth in the core registry and SSL businesses continues to strengthen our balance sheet, with Deferred Revenue of $691 million, up 4% from last quarter, and Cash and Investments of $819 million."

Business Highlights

--  In May, VeriSign announced that its Board of Directors had elected
    William A. Roper, Jr. as President and Chief Executive Officer.  The Board
    also elected Edward A. Mueller as Chairman of the Board.
--  Earlier this month, the Company announced that its Board of Directors
    had appointed Albert E. Clement as Chief Financial Officer.
--  VeriSign's Chief Technology Officer, Ari Balogh, was recognized by
    InfoWorld Magazine as a Top 25 CTO for his continued leadership of Project
    Titan, a three-year initiative to fortify and expand the capacity of the
    global Internet infrastructure.
--  On July 16, 2007, VeriSign announced that it had become current in its
    filings with the SEC, including its Annual Report on Form 10-K for the year
    ended December 31, 2006 as well as Quarterly Reports for the second and
    third quarters of 2006 and the first quarter of 2007.
--  Subsequent to completing its filings, the Company received
    notification from Nasdaq that the Company had demonstrated compliance with
    Nasdaq's filing requirements under the Marketplace Rules, that the matter
    relating to the company's listing status had been closed, and that
    VeriSign's securities will continue to be listed on the Nasdaq Global
    Select Market.
--  John D. Roach has been appointed to the Company’s Board of Directors,
    effective July 19, 2007.  Mr. Roach will serve on the Audit Committee of
    the Board of Directors.
--  At eBay Live! in June, PayPal announced the general availability of
    the PayPal Security Key, a two-factor authentication token that generates a
    unique security code to protect consumers against phishing and online
    fraud, in the United States, Germany and Australia. The PayPal Security Key
    is part of the VeriSign Identity Protection (VIP) Network, helping to
    prevent unauthorized access to consumer accounts on eBay, PayPal and a
    variety of e-commerce websites.
--  VeriSign and Live Earth integrated mobile messaging and online
    interactivity into events around the globe on 7.7.07 to enable millions of
    participants to use their mobile phones to personally participate in the
    broadcasts and live concerts demonstrating their commitment to making a
    change for the environment.
--  VeriSign partnered with AirMagnet in June to launch the VeriSign
    Wireless Intrusion Prevention Service (IPS), the first comprehensive
    service designed to effectively shield rapidly growing corporate wireless
    networks from data theft and other prominent security threats.
    

Internet Services Group

--  The Internet Services Group (ISG) -- which includes VeriSign Security
    Services (VSS) and VeriSign Information Services (VIS) -- delivered $225
    million of revenue in the second quarter of 2007.
--  The VeriSign Information Services business ended the quarter with
    approximately 73 million active domain names in .com and .net, representing
    a 5% increase over Q1 2007 and 27% increase year over year.
--  The VeriSign website certificate business issued approximately 211,000
    new and renewal certificates in Q2, bringing the total base to 883,000, up
    4% from Q1 2007.  The installed base excluding the GeoTrust certificates
    grew 13% year over year.
    

Communications Services Group

--  VeriSign Communications Services (VCS) Group -- which provides
    intelligent communications, commerce and content services to
    telecommunications carriers and next generation service providers --
    delivered revenues of $143 million in the second quarter of 2007.
--  The Communications and Commerce group generated revenues of $90
    million.
--  The Content group, which includes Messaging Services, generated
    revenues of $39 million during the quarter.