May 8, 2008 / 9:29 PM / 10 years ago

UPDATE 2-VeriSign Q1 results beat estimates

(Adds outlook from conference call, updates share movement)

May 8 (Reuters) - Internet services provider VeriSign Inc (VRSN.O) reported quarterly results that beat market estimates, helped by strong revenue growth at its core businesses.

In a conference call with analysts, the company forecast second-quarter revenue from core businesses of $228 million to $233 million.

Analysts on average were expecting revenue of $228.1 million, according to Reuters Estimates.

For the first quarter, VeriSign posted a net loss of $18.6 million, or 9 cents a share, compared with net income of $61.8 million, or 25 cents a share, a year earlier.

Revenue rose 7.9 percent to $354.3 million.

The results reflect an impairment on certain assets held for sale of $25.5 million and a restructuring charge of $26.5 million for both continuing and discontinued operations.

Excluding certain items, earnings at its core businesses, Internet infrastructure and identity services, were 21 cents a share on revenue of $223 million. Analysts expected earnings of 20 cents a share, excluding exceptional items, on revenue of $217.5 million, according to Reuters Estimates.

The company has been pursuing a plan, announced in November, to divest its slower growing units and focus on website-naming and Internet security services.

In the call, the company said it expects to place its messaging business into discontinued operations in the second quarter as it begins to actively market this business for sale within the next month.

The company also expects most of its other businesses targeted for disposition to be placed into discontinued operations by the end of the second quarter.

VeriSign shares were trading up 2 percent at $37.50 after the bell. They closed at $36.76 Thursday on Nasdaq. (Reporting by John Tilak and Bijoy Koyitty in Bangalore; Editing by Himani Sarkar)

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