VeriSign Reports First Quarter Results

Demand for 'Internet Utility' Services From Both New and Existing Customers

Fuels Strong Results and Extends Market Leadership



Apr 26, 2001, 01:00 ET from VeriSign, Inc.

    MOUNTAIN VIEW, Calif., April 26 /PRNewswire/ --
 VeriSign, Inc. (Nasdaq:   VRSN) today announced revenues of $213.4 million for
 the first quarter ended March 31, 2001, a 526% increase over revenues of
 $34.1 million reported in the quarter ended March 31, 2000.  Pro forma net
 income for the quarter ended March 31, 2001, excluding the amortization of
 goodwill and intangible assets related to acquisitions, stock-based
 compensation charges related to acquisitions, gains and losses on equity
 investments, and benefit for income taxes, was $48.6 million, or $0.23 diluted
 earnings per share compared to pro forma net income in the quarter ended
 March 31, 2000 of $2.2 million, or $0.02 diluted earnings per share.  In
 addition, deferred revenue balances increased 7% sequentially to $542 million
 and cash and investments totaled $1.2 billion for the quarter ended March 31,
 2001.  Including the amortization of goodwill and intangible assets related to
 acquisitions, stock-based compensation charges, gains and losses on equity
 investments, and benefit for income taxes, the net loss for the quarter ended
 March 31, 2001 was $1.4 billion.
     "We are very pleased with our first quarter results which, we believe,
 underscore the continued demand we are seeing for our services and demonstrate
 the underlying power of our financial model.  Even with the current
 macro-economic conditions facing the IT sector, we were able to grow our
 revenue sequentially, expand our operating margins and generate healthy
 operating cash flow during the quarter," said Stratton Sclavos, president and
 CEO of VeriSign.  "Consequently, we feel that we are well positioned to extend
 our leadership throughout 2001 as we execute on our strategy of moving
 complexity away from our customers and into the infrastructure to enable our
 customers to rapidly expand their business processes online."
 
     Enterprise/Service Provider Division
     VeriSign's Enterprise and Service Provider Division, which sells its
 services through a direct sales force, includes managed public key
 infrastructure (PKI) services, network and security consulting, corporate
 domain name management, the worldwide affiliate program and global registry
 services, saw another quarter of strong results.
     In the enterprise arena, VeriSign continued to experience strong demand
 for its broad range of services ending the first quarter with a total of
 3,120 active enterprise customers.  In particular, VeriSign continues to gain
 further traction with its managed PKI services adding over 200 new customers
 in the quarter, including Ernst & Young, Comerica, the Nuclear Regulatory
 Commission, and the Depository Trust Company.  Approximately 2,000 businesses,
 government agencies, and healthcare organizations now use VeriSign's managed
 PKI services to secure online business processes including supply chain and
 customer relationship management, secure messaging, and virtual private
 networks (VPNs).
     VeriSign's Affiliate program continued to thrive with the addition of two
 new service providers in Asia in the first quarter bringing the total number
 of affiliate members in the VeriSign Trust Network to 37 up from 35 in the
 fourth quarter ended December 31, 2000 and up from 23 in the first quarter
 ended March 31, 2000.
     The Registry Services group continued to see healthy demand in the domain
 name market with the addition of 3.1 million new names in the first quarter.
 The Registry ended the quarter with 30.6 million active domain names in its
 authoritative database of domain names ending in .com, .net and .org, up 120%
 from 13.9 million names at the end of the first quarter ended March 31, 2000,
 and up 9% over the fourth quarter ended December 31, 2000.  The Registry also
 processed the renewal, extension or transfer of an additional 2.7 million
 domain names during the quarter, bringing the total number of paid domain name
 transactions to 5.8 million.
 
     Mass Market Division
     VeriSign's Mass Market Division, which sells its services through its
 retail websites as well as a network of ISPs, includes domain name
 registration and web presence services, website digital certificates, and B2C
 payment services.
     In the web presence space, the NSI Registrar continued to demonstrate
 its market leadership in the first quarter by registering approximately
 1.0 million new and transferred domain names.  The NSI Registrar also renewed
 and extended 1.2 million domain names bringing its combined number of domain
 name transactions to approximately 2.2 million for the quarter.  The NSI
 Registrar now supports 6.5 million customers with some 15.5 million active
 domain names, representing 57% growth in the registration base over the first
 quarter of 2000.
     VeriSign's website certificate business continues to benefit from an
 aggressive lead generation program, a successful upsell campaign and
 80%+ retention rate, ending the quarter with a total of 90,000 new and
 renewed certificates issued, increasing the installed base to over
 305,000 certificates.  This represented 112% growth over the first quarter
 of 2000 and 11% growth over the fourth quarter ended December 31, 2000.
 The Mass Market installed base (excluding certificates sold into the
 Enterprise/Service Provider Division) grew to 225,000 up 96% over the first
 quarter of 2000.
     The Payment Services business saw outstanding growth in the first quarter
 as it continues to benefit from larger lead volumes and increasing conversion
 rates for its entire range of payment services.  VeriSign increased its active
 merchant count by over 5,000 in the quarter, exiting with a total of over
 19,900 online merchants now using its service, up 32% over the fourth quarter
 of 2000.
 
     Other Q1 Highlights
     VeriSign's most significant piece of news in the first quarter was the
 proposed amendment to its ICANN agreement and ICANN's subsequent approval of
 the revised registry agreement.  The revised ICANN-VeriSign agreements, which
 are subject to final approval by the U.S. Department of Commerce, will serve
 to normalize and strengthen the relations between ICANN and VeriSign.
     VeriSign also continued to expand and enhance its enterprise service
 offerings during the quarter with the announcement of several new strategic
 relationships.  VeriSign and Netegrity announced a partnership to deliver an
 entitlements management service for enterprises online trading hubs.  VeriSign
 also announced a partnership with Access360 to provide a managed user
 provisioning service that gives businesses a secure, efficient solution to
 manage user access rights beyond the enterprise to extranets and ASP-hosted
 services.
     In addition, VeriSign began to leverage its expertise in managing .com,
 .net and .org and the constellation of domain name servers around the globe
 that support them, with the introduction of its domain name system (DNS)
 services for enterprises.  VeriSign's Secondary Name Server Hosting service,
 an outsourced DNS management solution, ensures optimum availability of online
 business operations by providing 100% guaranteed uptime for a company's DNS
 resolution.
     During the quarter, VeriSign also made further inroads into the still
 emerging wireless market announcing key relationships with Ericsson and NTT
 DoCoMo to embed VeriSign digital certificate technology inside the next
 generation mobile phones.  In addition, VeriSign launched the public beta of
 its Webnum(TM) global navigation services to simplify navigation over the
 wireless Internet.
     VeriSign also continued to strengthen its payment services business
 recently announcing a strategic agreement with eONE Global to deliver
 integrated B2B and B2C Internet payment solutions.  The two companies have
 agreed to co-market each other's products and services as well as co-develop
 solutions to increase secure payment options for a broad range of businesses
 engaged in e-commerce.
 
     Conference Call Information:
     VeriSign will host a conference call at 2:00 p.m. (Pacific) this afternoon
 to review the first quarter earnings announcement.  A listen-only live
 broadcast of the Q1 earnings conference call will be available at
 www.verisign.com or www.streetfusion.com.  A replay of the teleconference will
 also be available at 888-203-1112 (passcode: 470798) beginning at 5:00 p.m.
 (Pacific) on April 26th and running through May 3rd.
 
     About VeriSign
     VeriSign, Inc. is the leading provider of trusted infrastructure services
 to Web sites, enterprises, electronic commerce service providers and
 individuals. The company's domain name, digital certificate and payment
 services provide the critical Web identity, authentication and transaction
 infrastructure that online businesses require to conduct secure e-commerce and
 communications. VeriSign's services are available through its Web site
 (www.verisign.com) or through its direct sales force and reseller partners
 around the world.
 
     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, VeriSign's limited operating history under its current business
 structure, uncertainty of future revenue and profitability and potential
 fluctuations in quarterly operating results, increased competition, risks
 associated with the company's international business and risks related to
 potential security breaches. 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, especially in
 the company's Annual Report on Form 10-K for the year ended December 31, 2000.
 VeriSign undertakes no obligation to update any of the forward-looking
 statements after the date of this press release.
 
                          VERISIGN, INC. AND SUBSIDIARIES
 
             PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                       (In thousands, except per share data)
 
                                                          Three Months Ended
                                                               March 31,
                                                           2001       2000
     Revenues                                            $213,413    $34,071
 
     Costs and expenses:
       Cost of revenues                                    72,635     12,462
       Sales and marketing                                 63,427     13,633
       Research and development                            19,557      4,429
       General and administrative                          30,484      3,682
         Total costs and expenses                         186,103     34,206
         Operating income (loss)                           27,310       (135)
 
     Other income:
       Interest income                                     21,490      2,613
       Other income (expense), net                             37       (389)
         Total other income                                21,527      2,224
 
     Income before minority interests                      48,837      2,089
     Minority interest in net (income) loss of subsidiary    (210)       147
 
     Net income                                           $48,627     $2,236
 
     Net income per share:
       Basic                                                 $.24       $.02
       Diluted                                               $.23       $.02
 
     Shares used in per share computation:
       Basic                                              199,520    108,847
       Diluted                                            210,329    124,438
 
 
     Note:  The above unaudited pro forma condensed consolidated statements of
            operations exclude the effects of the amortization of goodwill and
            intangible assets, stock-based compensation charges, gains and
            losses on equity investments, and tax benefits.
 
 
                          VERISIGN, INC. AND SUBSIDIARIES
 
                  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                       (In thousands, except per share data)
 
                                                          Three Months Ended
                                                               March 31,
                                                           2001       2000
     Revenues                                            $213,413    $34,071
     Costs and expenses:
       Cost of revenues                                    74,340     12,462
       Sales and marketing                                 64,451     13,633
       Research and development                            19,887      4,429
       General and administrative                          31,166      3,682
       Amortization of goodwill and other
        intangible assets                               1,374,769     61,014
         Total costs and expenses                       1,564,613     95,220
         Operating loss                                (1,351,200)   (61,149)
 
     Other income:
       Interest and investment income (loss)              (53,200)    35,236
       Other income (expense), net                             37       (389)
         Total other income (loss)                        (53,163)    34,847
 
     Loss before income taxes and minority
      interests                                        (1,404,363)   (26,302)
     Benefit for income taxes                              27,196         --
 
     Loss before minority interests                    (1,377,167)   (26,302)
     Minority interest in net (income) loss
      of subsidiary                                          (210)       147
 
     Net loss                                         $(1,377,377)  $(26,155)
 
     Net loss per share:
       Basic and diluted                                   $(6.90)    $(.24)
 
     Shares used in per share computation:
       Basic and diluted                                  199,520    108,847
 
 
 
 
                          VERISIGN, INC. AND SUBSIDIARIES
 
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                         (In thousands, except share data)
 
                                                      March 31,   December 31,
                                                         2001         2000
                            Assets
     Current assets:
       Cash and cash equivalents                      $363,649      $460,362
       Short-term investments                          546,281       565,913
       Accounts receivable, net                        161,150       128,011
       Prepaid expenses and other current assets        29,182        32,146
         Total current assets                        1,100,262     1,186,432
     Property and equipment, net                       114,736       105,602
     Goodwill and other intangible assets, net      16,286,314    17,656,641
     Long-term investments                             333,729       209,145
     Deferred income taxes                              21,572            --
     Other assets, net                                  28,708        37,402
                                                   $17,885,321   $19,195,222
 
             Liabilities and Stockholders' Equity
     Current liabilities:
       Accounts payable and accrued liabilities       $204,378      $193,952
       Accrued merger costs                             12,004        18,814
       Deferred revenue                                435,340       452,713
         Total current liabilities                     651,722       665,479
     Long-term deferred revenue                        106,349        55,575
     Other long-term liabilities                         3,306         3,560
         Total long-term liabilities                   109,655        59,135
     Commitments and contingencies
     Stockholders' equity:
       Preferred stock - par value $.001 per share
         Authorized shares:  5,000,000
         Issued and outstanding shares:  none               --            --
       Common stock - par value $.001 per share
         Authorized shares:  1,000,000,000
         Issued and outstanding shares:
          200,486,576 and 198,639,497 excluding
          40,000 shares held
          in treasury                                      200           199
       Additional paid-in capital                   21,699,787    21,670,647
       Notes receivable from stockholders                 (248)         (245)
       Unearned compensation                           (38,041)      (36,365)
       Accumulated deficit                          (4,540,303)   (3,162,926)
       Accumulated other comprehensive
        income (loss)                                    2,549          (702)
         Total stockholders' equity                 17,123,944    18,470,608
                                                   $17,885,321   $19,195,222
 
 
     NOTE:  VeriSign is a registered trademark of VeriSign, Inc. VeriSign Trust
 Network is a service mark of VeriSign, Inc.  All other trademarks are
 properties of their respective owners.
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X43738584
 
 

SOURCE VeriSign, Inc.
    MOUNTAIN VIEW, Calif., April 26 /PRNewswire/ --
 VeriSign, Inc. (Nasdaq:   VRSN) today announced revenues of $213.4 million for
 the first quarter ended March 31, 2001, a 526% increase over revenues of
 $34.1 million reported in the quarter ended March 31, 2000.  Pro forma net
 income for the quarter ended March 31, 2001, excluding the amortization of
 goodwill and intangible assets related to acquisitions, stock-based
 compensation charges related to acquisitions, gains and losses on equity
 investments, and benefit for income taxes, was $48.6 million, or $0.23 diluted
 earnings per share compared to pro forma net income in the quarter ended
 March 31, 2000 of $2.2 million, or $0.02 diluted earnings per share.  In
 addition, deferred revenue balances increased 7% sequentially to $542 million
 and cash and investments totaled $1.2 billion for the quarter ended March 31,
 2001.  Including the amortization of goodwill and intangible assets related to
 acquisitions, stock-based compensation charges, gains and losses on equity
 investments, and benefit for income taxes, the net loss for the quarter ended
 March 31, 2001 was $1.4 billion.
     "We are very pleased with our first quarter results which, we believe,
 underscore the continued demand we are seeing for our services and demonstrate
 the underlying power of our financial model.  Even with the current
 macro-economic conditions facing the IT sector, we were able to grow our
 revenue sequentially, expand our operating margins and generate healthy
 operating cash flow during the quarter," said Stratton Sclavos, president and
 CEO of VeriSign.  "Consequently, we feel that we are well positioned to extend
 our leadership throughout 2001 as we execute on our strategy of moving
 complexity away from our customers and into the infrastructure to enable our
 customers to rapidly expand their business processes online."
 
     Enterprise/Service Provider Division
     VeriSign's Enterprise and Service Provider Division, which sells its
 services through a direct sales force, includes managed public key
 infrastructure (PKI) services, network and security consulting, corporate
 domain name management, the worldwide affiliate program and global registry
 services, saw another quarter of strong results.
     In the enterprise arena, VeriSign continued to experience strong demand
 for its broad range of services ending the first quarter with a total of
 3,120 active enterprise customers.  In particular, VeriSign continues to gain
 further traction with its managed PKI services adding over 200 new customers
 in the quarter, including Ernst & Young, Comerica, the Nuclear Regulatory
 Commission, and the Depository Trust Company.  Approximately 2,000 businesses,
 government agencies, and healthcare organizations now use VeriSign's managed
 PKI services to secure online business processes including supply chain and
 customer relationship management, secure messaging, and virtual private
 networks (VPNs).
     VeriSign's Affiliate program continued to thrive with the addition of two
 new service providers in Asia in the first quarter bringing the total number
 of affiliate members in the VeriSign Trust Network to 37 up from 35 in the
 fourth quarter ended December 31, 2000 and up from 23 in the first quarter
 ended March 31, 2000.
     The Registry Services group continued to see healthy demand in the domain
 name market with the addition of 3.1 million new names in the first quarter.
 The Registry ended the quarter with 30.6 million active domain names in its
 authoritative database of domain names ending in .com, .net and .org, up 120%
 from 13.9 million names at the end of the first quarter ended March 31, 2000,
 and up 9% over the fourth quarter ended December 31, 2000.  The Registry also
 processed the renewal, extension or transfer of an additional 2.7 million
 domain names during the quarter, bringing the total number of paid domain name
 transactions to 5.8 million.
 
     Mass Market Division
     VeriSign's Mass Market Division, which sells its services through its
 retail websites as well as a network of ISPs, includes domain name
 registration and web presence services, website digital certificates, and B2C
 payment services.
     In the web presence space, the NSI Registrar continued to demonstrate
 its market leadership in the first quarter by registering approximately
 1.0 million new and transferred domain names.  The NSI Registrar also renewed
 and extended 1.2 million domain names bringing its combined number of domain
 name transactions to approximately 2.2 million for the quarter.  The NSI
 Registrar now supports 6.5 million customers with some 15.5 million active
 domain names, representing 57% growth in the registration base over the first
 quarter of 2000.
     VeriSign's website certificate business continues to benefit from an
 aggressive lead generation program, a successful upsell campaign and
 80%+ retention rate, ending the quarter with a total of 90,000 new and
 renewed certificates issued, increasing the installed base to over
 305,000 certificates.  This represented 112% growth over the first quarter
 of 2000 and 11% growth over the fourth quarter ended December 31, 2000.
 The Mass Market installed base (excluding certificates sold into the
 Enterprise/Service Provider Division) grew to 225,000 up 96% over the first
 quarter of 2000.
     The Payment Services business saw outstanding growth in the first quarter
 as it continues to benefit from larger lead volumes and increasing conversion
 rates for its entire range of payment services.  VeriSign increased its active
 merchant count by over 5,000 in the quarter, exiting with a total of over
 19,900 online merchants now using its service, up 32% over the fourth quarter
 of 2000.
 
     Other Q1 Highlights
     VeriSign's most significant piece of news in the first quarter was the
 proposed amendment to its ICANN agreement and ICANN's subsequent approval of
 the revised registry agreement.  The revised ICANN-VeriSign agreements, which
 are subject to final approval by the U.S. Department of Commerce, will serve
 to normalize and strengthen the relations between ICANN and VeriSign.
     VeriSign also continued to expand and enhance its enterprise service
 offerings during the quarter with the announcement of several new strategic
 relationships.  VeriSign and Netegrity announced a partnership to deliver an
 entitlements management service for enterprises online trading hubs.  VeriSign
 also announced a partnership with Access360 to provide a managed user
 provisioning service that gives businesses a secure, efficient solution to
 manage user access rights beyond the enterprise to extranets and ASP-hosted
 services.
     In addition, VeriSign began to leverage its expertise in managing .com,
 .net and .org and the constellation of domain name servers around the globe
 that support them, with the introduction of its domain name system (DNS)
 services for enterprises.  VeriSign's Secondary Name Server Hosting service,
 an outsourced DNS management solution, ensures optimum availability of online
 business operations by providing 100% guaranteed uptime for a company's DNS
 resolution.
     During the quarter, VeriSign also made further inroads into the still
 emerging wireless market announcing key relationships with Ericsson and NTT
 DoCoMo to embed VeriSign digital certificate technology inside the next
 generation mobile phones.  In addition, VeriSign launched the public beta of
 its Webnum(TM) global navigation services to simplify navigation over the
 wireless Internet.
     VeriSign also continued to strengthen its payment services business
 recently announcing a strategic agreement with eONE Global to deliver
 integrated B2B and B2C Internet payment solutions.  The two companies have
 agreed to co-market each other's products and services as well as co-develop
 solutions to increase secure payment options for a broad range of businesses
 engaged in e-commerce.
 
     Conference Call Information:
     VeriSign will host a conference call at 2:00 p.m. (Pacific) this afternoon
 to review the first quarter earnings announcement.  A listen-only live
 broadcast of the Q1 earnings conference call will be available at
 www.verisign.com or www.streetfusion.com.  A replay of the teleconference will
 also be available at 888-203-1112 (passcode: 470798) beginning at 5:00 p.m.
 (Pacific) on April 26th and running through May 3rd.
 
     About VeriSign
     VeriSign, Inc. is the leading provider of trusted infrastructure services
 to Web sites, enterprises, electronic commerce service providers and
 individuals. The company's domain name, digital certificate and payment
 services provide the critical Web identity, authentication and transaction
 infrastructure that online businesses require to conduct secure e-commerce and
 communications. VeriSign's services are available through its Web site
 (www.verisign.com) or through its direct sales force and reseller partners
 around the world.
 
     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, VeriSign's limited operating history under its current business
 structure, uncertainty of future revenue and profitability and potential
 fluctuations in quarterly operating results, increased competition, risks
 associated with the company's international business and risks related to
 potential security breaches. 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, especially in
 the company's Annual Report on Form 10-K for the year ended December 31, 2000.
 VeriSign undertakes no obligation to update any of the forward-looking
 statements after the date of this press release.
 
                          VERISIGN, INC. AND SUBSIDIARIES
 
             PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                       (In thousands, except per share data)
 
                                                          Three Months Ended
                                                               March 31,
                                                           2001       2000
     Revenues                                            $213,413    $34,071
 
     Costs and expenses:
       Cost of revenues                                    72,635     12,462
       Sales and marketing                                 63,427     13,633
       Research and development                            19,557      4,429
       General and administrative                          30,484      3,682
         Total costs and expenses                         186,103     34,206
         Operating income (loss)                           27,310       (135)
 
     Other income:
       Interest income                                     21,490      2,613
       Other income (expense), net                             37       (389)
         Total other income                                21,527      2,224
 
     Income before minority interests                      48,837      2,089
     Minority interest in net (income) loss of subsidiary    (210)       147
 
     Net income                                           $48,627     $2,236
 
     Net income per share:
       Basic                                                 $.24       $.02
       Diluted                                               $.23       $.02
 
     Shares used in per share computation:
       Basic                                              199,520    108,847
       Diluted                                            210,329    124,438
 
 
     Note:  The above unaudited pro forma condensed consolidated statements of
            operations exclude the effects of the amortization of goodwill and
            intangible assets, stock-based compensation charges, gains and
            losses on equity investments, and tax benefits.
 
 
                          VERISIGN, INC. AND SUBSIDIARIES
 
                  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                       (In thousands, except per share data)
 
                                                          Three Months Ended
                                                               March 31,
                                                           2001       2000
     Revenues                                            $213,413    $34,071
     Costs and expenses:
       Cost of revenues                                    74,340     12,462
       Sales and marketing                                 64,451     13,633
       Research and development                            19,887      4,429
       General and administrative                          31,166      3,682
       Amortization of goodwill and other
        intangible assets                               1,374,769     61,014
         Total costs and expenses                       1,564,613     95,220
         Operating loss                                (1,351,200)   (61,149)
 
     Other income:
       Interest and investment income (loss)              (53,200)    35,236
       Other income (expense), net                             37       (389)
         Total other income (loss)                        (53,163)    34,847
 
     Loss before income taxes and minority
      interests                                        (1,404,363)   (26,302)
     Benefit for income taxes                              27,196         --
 
     Loss before minority interests                    (1,377,167)   (26,302)
     Minority interest in net (income) loss
      of subsidiary                                          (210)       147
 
     Net loss                                         $(1,377,377)  $(26,155)
 
     Net loss per share:
       Basic and diluted                                   $(6.90)    $(.24)
 
     Shares used in per share computation:
       Basic and diluted                                  199,520    108,847
 
 
 
 
                          VERISIGN, INC. AND SUBSIDIARIES
 
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                         (In thousands, except share data)
 
                                                      March 31,   December 31,
                                                         2001         2000
                            Assets
     Current assets:
       Cash and cash equivalents                      $363,649      $460,362
       Short-term investments                          546,281       565,913
       Accounts receivable, net                        161,150       128,011
       Prepaid expenses and other current assets        29,182        32,146
         Total current assets                        1,100,262     1,186,432
     Property and equipment, net                       114,736       105,602
     Goodwill and other intangible assets, net      16,286,314    17,656,641
     Long-term investments                             333,729       209,145
     Deferred income taxes                              21,572            --
     Other assets, net                                  28,708        37,402
                                                   $17,885,321   $19,195,222
 
             Liabilities and Stockholders' Equity
     Current liabilities:
       Accounts payable and accrued liabilities       $204,378      $193,952
       Accrued merger costs                             12,004        18,814
       Deferred revenue                                435,340       452,713
         Total current liabilities                     651,722       665,479
     Long-term deferred revenue                        106,349        55,575
     Other long-term liabilities                         3,306         3,560
         Total long-term liabilities                   109,655        59,135
     Commitments and contingencies
     Stockholders' equity:
       Preferred stock - par value $.001 per share
         Authorized shares:  5,000,000
         Issued and outstanding shares:  none               --            --
       Common stock - par value $.001 per share
         Authorized shares:  1,000,000,000
         Issued and outstanding shares:
          200,486,576 and 198,639,497 excluding
          40,000 shares held
          in treasury                                      200           199
       Additional paid-in capital                   21,699,787    21,670,647
       Notes receivable from stockholders                 (248)         (245)
       Unearned compensation                           (38,041)      (36,365)
       Accumulated deficit                          (4,540,303)   (3,162,926)
       Accumulated other comprehensive
        income (loss)                                    2,549          (702)
         Total stockholders' equity                 17,123,944    18,470,608
                                                   $17,885,321   $19,195,222
 
 
     NOTE:  VeriSign is a registered trademark of VeriSign, Inc. VeriSign Trust
 Network is a service mark of VeriSign, Inc.  All other trademarks are
 properties of their respective owners.
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X43738584
 
 SOURCE  VeriSign, Inc.