VeriSign, Inc.: SWOT Analysis & Company Profile by BusinessReview


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									VeriSign, Inc.


VeriSign, Inc.: SWOT Analysis & Company

Reference code: BRTC232CP10-Q4

Published: Sep 2010

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VeriSign, Inc. - SWOT Profile                                                       Page 1
VeriSign, Inc.


VeriSign, Inc. - Company Overview

VeriSign, Inc. (VeriSign) is a US-based provider of Internet infrastructure services. It principally offers various Internet
Infrastructure and Identity Services, which comprises naming services and authentication services. The company provides
internet infrastructure and identity services (3IS), including secure socket layer (SSL) certificate services, naming
services, identity and authentication services (IAS). VeriSign supports about 50 billion authoritative Domain Name System
(DNS) queries per day. The company protects more than one million web servers with digital certificates, protecting the
majority of secure web sites on the Internet, including 97 of the world’s 100 major SSL-using banks and 93% of the
Fortune 500 sites. Its operations are located across Switzerland, Japan, Germany, and the US. The company is
headquartered at Mountain View, California, the US.

Financial Performance

The company reported revenues of (U.S. Dollars) USD 1,030.62 million during the fiscal year ended December 2009, an
increase of 6.83% over 2008. The operating profit of the company was USD 313.73 million during the fiscal year 2009, an
increase of 393.30% over 2008. The net profit of the company was USD 245.55 million during the fiscal year 2009,
whereas the company reported a net loss of USD 374.25 million during 2008.

VeriSign, Inc. - Key Facts

VeriSign, Inc., Key Facts

                                  487 East Middlefield Road,
                                  Mountain View, California (CA),   Ticker Symbol, Stock
Corporate Address:                                                                               VRSN (NASDAQ)
                                  94043, United States

Telephone                         + 1 650 9617500                   No. of Employees             2,328

Fax                               + 1 650 9617300                   Financial Year End           December

URL                                       Revenue (in USD Million)     1,030.62

                                  Technology and

                                  Australia, China, India, Japan, New Zealand, Singapore, Austria, Denmark, France, Germany,
Locations                         Norway, Spain, Sweden, Switzerland, United Kingdom, United Arab Emirates, United States, Brazil

Source: Annual Report, Company Website, Primary and Secondary Research


VeriSign, Inc. - SWOT Profile                                                                                            Page 2
VeriSign, Inc.


VeriSign, Inc. - Business Description

VeriSign, Inc. (VeriSign) is engaged in providing Information Technology services worldwide. It provides a wide range of
intelligent infrastructure services for voice and data networks. The company also provides businesses with a variety of
Internet and communications related services which are principally marketed via website sales, direct field sales, channel
sales, telesales, and member organizations in the global network. As of December 2009 the company employs about
2,328 people.

VeriSign operates through two reportable segments namely, Internet Infrastructure and Identity Services (3IS) and Other

The company, under its Internet Infrastructure and Identity Services segment, provides Naming Services, SSL Certificate
Services, and Identity and Authentication Services. The Naming Services business operates the authoritative directory of
all .COM, .NET, .CC, .TV, .name, and. Jobs domain names. It provides the registry services of domain names. In addition,
it also offers intelligent supply chain services enable trusted, secure and scalable information exchange and collaboration
among global supply chain participants; SSL Certificate Services of the company helps the enterprises and Internet
merchants to implement and operate secure networks and websites which utilize SSL protocol. It principally offers
VeriSign Secure Site and Secure Site Pro Certificates, VeriSign Secure Site with Extended Validation (EV) SSL
Certificates and Secure Site Pro with EV SSL Certificates and GeoTrust and thawte Branded Certificates. Verisign’s
Identity and Authentication Services comprises VeriSign Identity Protection Service, Fraud Detection Service, Managed
PKI Service and Unified Authentication Service. During the fiscal year 2009, the Internet Infrastructure and Identity
Services segment of the company generated 99.6% of the company’s total revenue.

The Other Services segment deals in the operations of non-core pre-pay billing and payment services business, legacy
products and divested businesses services. The legacy products and services under the respective segment include
Jamba, a mobile entertainment services; the RDS business, a point-of-sale data information services principally for retail,
pharmaceutical and consumer goods customers; and the CDN business, a broadband content services. During the fiscal
year 2009, the Other Services segment of the company generated 0.4% of the company’s total revenue.

The sales and marketing unit of the company markets worldwide through multiple distribution channels such as Internet,
direct sales, telesales, direct marketing including media, mass merchandisers, value added resellers, systems integrators,
and other VeriSign International Affiliates.

Verisign’s research and development (R&D) activities include the development of new and enhanced Internet security, e-
commerce, information, and technologies. During the fiscal year 2009, its R&D expenses totaled to USD 83.6 million,
representing 8.1% of the total revenue and employed about 769 people.

The company classifies its geographic operations in four segments namely, US; Australia, Japan and other Asia Pacific
countries (APAC); Europe, the Middle East and Africa (EMEA); and Other countries including Canada and Latin American
countries. During the fiscal year 2009, US generated 57.5% of the company’s total revenue, followed by APAC (18.8%),
EMEA (16.4%), and Other (7.4%).

Recently, the company won the 2010 Network Products Guide Reader Trust awards as well as won two 2010 SC
Magazine Reader Trust awards.

On May 19, 2010, Verisign announced a definitive agreement to sell its Authentication Services business to Symantec

In recent Cloud Expo, Verisign collaborated with other industry leaders to build trusted online identity solutions, for placing
trust in cloud-based services and applications.

Also, the company opened new lab to test Interoperability of Internet Solutions with DNSSEC, aimed at improving security
of communications over the internet.

In Parallels Summit 2010, the company introduces VeriSign Trust Seal that will increase the confidence, traffic and
transactions for sites that do not require SSL Certificates.


VeriSign, Inc. - SWOT Profile                                                                                         Page 3
VeriSign, Inc.


VeriSign, Inc. - Major Products and Services

VeriSign, Inc. is one of the providers of Internet infrastructure services for the networked world. Key services of the
company include the following:

VeriSign, Inc., Major Products and Services

SSL Certificates

Domain Name Services

Content and Messaging Services

Identity and Authentication Services

Enterprise Security Services

Global Consulting Services

Communications Services
Source: Annual Report, Company Website, Primary and Secondary Research


VeriSign, Inc. - SWOT Profile                                                                                         Page 4
VeriSign, Inc.


VeriSign, Inc. - History

VeriSign, Inc., History

   Year                   Event type                                             Description

   2009     Corporate Awards                VeriSign Identity Protection Access for Mobile won Mobile Star awards.

                                            VeriSign won Information Security Magazine and 2009 Readers'
   2009     Corporate Awards
                                            Choice award in "Best Authentication Products" category.

   2009     New Products/Services           VeriSign Mobile introduced Dynamic
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