SOURCE: VeriSign, Inc.

VeriSign, Inc.

August 06, 2009 16:15 ET

VeriSign Reports 9% Year-Over-Year Revenue Growth in Second Quarter 2009

Achieves 19% Non-GAAP Earnings Per Share Growth Year-Over-Year and Year-Over-Year GAAP Earnings per Share Growth of 151%(1)

MOUNTAIN VIEW, CA--(Marketwire - August 6, 2009) - VeriSign, Inc. (NASDAQ: VRSN), the trusted provider of Internet infrastructure services, today reported financial results for the second quarter ended June 30, 2009.

On a GAAP basis, VeriSign reported revenue of $257 million from continuing operations for the second quarter of 2009. On a GAAP basis, VeriSign reported net income attributable to VeriSign, Inc. and subsidiaries of $35 million and earnings per share attributable to VeriSign, Inc. and subsidiaries of $0.18 on a fully-diluted basis.

On a GAAP basis, VeriSign reported segment revenue for Internet Infrastructure and Identity Services, or the "core businesses" of Naming Services and Authentication Services, of $255 million for the second quarter of 2009, up 1% from the prior quarter and up 9% year-over-year. GAAP core operating margin for the second quarter was 32.6%.

On a non-GAAP basis (which excludes items described below) for its core businesses, VeriSign reported net income attributable to VeriSign, Inc. and subsidiaries of $61 million for the second quarter of 2009 and fully-diluted earnings per share of $0.31. Non-GAAP operating margin for the second quarter was 38.4%. A table reconciling the GAAP to the non-GAAP results reported above is appended to this release.

"Under economic conditions that continue to make our environment a challenging one, we have delivered another successful quarter while, at the same time, refocusing the company," said Jim Bidzos, VeriSign executive chairman and chief executive officer on an interim basis. "We continue to make progress with our divestiture program, with only two of thirteen businesses left to divest."

"We believe our positive results this quarter and for the past several quarters validate our key position in critical Internet infrastructure services," said Mark McLaughlin, president and chief operating officer of VeriSign. "Billions of times each day, VeriSign technologies bring trust to the Internet. We believe that the continued growth of Internet usage, concurrent cyberattacks and fraud further underscore the importance of our services."

"We had a very good quarter, fueled by strong 9% year-over-year revenue growth in our core businesses," said Brian Robins, chief financial officer of VeriSign. "The macroeconomic environment continues to be challenging, but our results this quarter on the top and bottom line speak to the resiliency of our business model."

Business and Corporate Highlights

--  VeriSign Naming Services ended the quarter with approximately 93.5
    million active domain names in the adjusted zone for .com and .net,
    representing a 7% increase year-over-year.
--  VeriSign Business Authentication Services, previously known as SSL
    Certificate Services, ended the quarter with 1.17 million SSL certificates
    in the installed base, an increase of 11% over the same quarter last year.
--  VeriSign recently reported that it surpassed a record one billion
    certificate validations daily, enabling secure online transactions around
    the world on an increasing scale.
--  Subsequent to the end of the quarter, VeriSign completed the sale of
    the Managed Security Services (MSS) business.  The proceeds from the sales
    of the non-core businesses from November 2007 to date, including the sale
    of the remaining interest in the Jamba joint venture, are approximately
    $575 million.
--  From November 2007 to date, VeriSign has sold 11 non-core businesses
    and is in the process of winding down one business in non-core continuing
    operations.  The Messaging and Global Security Consulting businesses remain
    in discontinued operations and are currently being marketed for sale.
--  VeriSign 2009 Analyst Day will be held on November 19 in New York
    City.  Additional details will be forthcoming.
    

Financial Highlights

--  Revenue from discontinued operations was $70 million while non-core
    businesses reported $1.4 million of revenue as part of continuing
    operations during the second quarter of 2009.
--  VeriSign ended the second quarter of 2009 with Cash and Equivalents of
    $1.3 billion, inclusive of $2 million of restricted cash, an increase of
    $366 million from the prior quarter.
--  Cash flow from operations, on a consolidated basis, for the second
    quarter of 2009 was approximately $83 million or $121 million year-to-date,
    after giving effect to a reclassification of $95 million of year-to-date
    excess tax benefit associated with stock-based compensation from operating
    cash flows to financing cash flows.
--  Capital expenditures, on a consolidated basis, were approximately $20
    million for the second quarter of 2009 and $41 million year-to-date.
--  Deferred revenue on June 30, 2009 totaled $878 million for continuing
    operations, an increase of $6 million from the prior quarter.
    

Non-GAAP Items

Non-GAAP results exclude the following items that are included under GAAP: discontinued operations, non-core businesses in continuing operations, stock-based compensation, amortization of other intangible assets, impairments of goodwill and other intangible assets, and restructuring costs. Non-GAAP financial information is also adjusted for a 30% tax rate which differs from the GAAP tax rate. A table reconciling the GAAP to non-GAAP net income is appended to this release.

Today's Conference Call

VeriSign will host a live teleconference call today at 2:00 p.m. (PDT) to review the second quarter results. The call will be accessible by direct dial at (888) 676-VRSN (U.S.) or (913) 312-0965 (international). A listen-only live web cast and accompanying slide presentation of the earnings conference call will also be available at http://investor.verisign.com. A replay of this call will be available at (888) 203-1112 or (719) 457-0820 (passcode: 1455250) beginning at 7:00 p.m. (PDT) on August 6 and will run through August 13. This press release and the financial information discussed on today's conference call are available on the Investor Relations section of the VeriSign website at http://investor.verisign.com.

About VeriSign

VeriSign, Inc. (NASDAQ: VRSN) is the trusted provider of Internet infrastructure services for the networked world. Billions of times each day, VeriSign helps companies and consumers all over the world engage in communications and commerce with confidence. Additional news and information about the company is available at www.verisign.com.

VRSNF

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 as amended and Section 21E of the Securities Exchange Act of 1934 as amended. 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 uncertainty of future revenue and profitability and potential fluctuations in quarterly operating results due to such factors as increasing competition and pricing pressure from competing services offered at prices below our prices, market acceptance of our existing services and the current global economic downturn, the inability of VeriSign to successfully develop and market new services, the uncertainty of whether new services as provided by VeriSign will achieve market acceptance or result in any revenues, the risk that planned divestitures of certain businesses may be delayed or pending dispositions may not be completed, may generate less proceeds than expected or may incur unanticipated costs or otherwise negatively affect VeriSign's financial condition, results of operations or cash flows, and the uncertainty of whether Project Titan will achieve its stated objectives. 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, 2008, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. VeriSign undertakes no obligation to update any of the forward-looking statements after the date of this press release.

(1) As originally published, this press release contained the statement
"Achieves 29% Core Earnings Per Share Growth Year-Over-Year." This
statement was inaccurate and investors should not rely upon it in
evaluating the Company's performance for the period ended June 30,
2009.  The Company is hereby amending and restating this statement
in this Earnings Release to state "Achieves 19% Non-GAAP Earnings Per
Share Growth Year-Over-Year and Year-over-Year GAAP Earnings per Share
Growth of 151%." No other revisions are being made to this Earnings
Release.

Please see the last page of this Earnings Release for an additional
table presenting the reconciliation of GAAP to non-GAAP net income for
the three and six months ended June 30, 2008.  The non-GAAP presentation
for 2008 has been conformed to the non-GAAP presentation for 2009 by
excluding the same items under GAAP for both periods.  In addition to
the change from "core" to "non-GAAP" earnings per share growth, the
difference between the initial statement in this Earnings Release and
the amended and restated statement is due to the fact that our 2009
non-GAAP presentation no longer includes other non-recurring items,
which consisted of litigation reserves of $6.4 million previously
included in our 2008 non-GAAP presentation.

                       VERISIGN, INC. AND SUBSIDIARIES
                    CONDENSED CONSOLIDATED BALANCE SHEETS
               (In thousands, except share and per share data)
                               (Unaudited)


                                                    June 30,   December 31,
                                                      2009        2008
                                                  -----------  -----------
                               ASSETS
Current assets:
  Cash and cash equivalents                       $ 1,308,352  $   789,068
  Accounts receivable, net of allowance for
   doubtful accounts of $1,088 at June 30, 2009
   and $1,208 at December 31, 2008                     77,372       83,749
  Prepaid expenses and other current assets           167,160      268,178
  Assets held for sale                                263,991      483,840
                                                  -----------  -----------
     Total current assets                           1,816,875    1,624,835
                                                  -----------  -----------
Property and equipment, net                           370,107      385,498
Goodwill                                              289,681      283,109
Other intangible assets, net                           37,333       35,312
Other assets                                           36,177       38,118
                                                  -----------  -----------
     Total long-term assets                           733,298      742,037
                                                  -----------  -----------
     Total assets                                 $ 2,550,173  $ 2,366,872
                                                  ===========  ===========

               LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Accounts payable and accrued liabilities        $   238,785  $   263,535
  Accrued restructuring costs                           6,882       28,920
  Deferred revenues                                   655,777      629,800
  Liabilities related to assets held for sale          49,585       49,160
  Other current liabilities                             5,411        5,463
                                                  -----------  -----------
     Total current liabilities                        956,440      976,878
                                                  -----------  -----------
Long-term deferred revenues                           222,106      215,281
Long-term accrued restructuring costs                   3,610        3,037
Convertible debentures, including contingent
 interest derivative                                  570,707      568,712
Other long-term liabilities                            76,611       84,543
                                                  -----------  -----------
     Total long-term liabilities                      873,034      871,573
                                                  -----------  -----------
     Total liabilities                              1,829,474    1,848,451
                                                  -----------  -----------
Commitments and contingencies

Stockholders' equity:
  VeriSign, Inc. and subsidiaries 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: 192,243,161 excluding
      113,713,032 held in treasury, at June 30, 2009;
      and 191,547,795 excluding 112,717,587 held in
      treasury, at December 31, 2008                      306          304
     Additional paid-in capital                    22,008,243   21,891,891
     Accumulated deficit                          (21,340,094) (21,439,988)
     Accumulated other comprehensive income             5,853       17,006
                                                  -----------  -----------
     Total VeriSign, Inc. and subsidiaries
      stockholders' equity                            674,308      469,213
  Noncontrolling interest in subsidiary                46,391       49,208
                                                  -----------  -----------
     Total stockholders' equity                       720,699      518,421
                                                  -----------  -----------
     Total liabilities and stockholders' equity   $ 2,550,173  $ 2,366,872
                                                  ===========  ===========




             VERISIGN, INC. AND SUBSIDIARIES
     CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
         (In thousands, except per share data)
                     (Unaudited)


                                 Three Months Ended     Six Months Ended
                                      June 30,              June 30,
                                --------------------  --------------------
                                  2009       2008       2009       2008
                                ---------  ---------  ---------  ---------
Revenues                        $ 256,619  $ 242,033  $ 511,614  $ 477,298
                                ---------  ---------  ---------  ---------
Costs and expenses:
  Cost of revenues                 57,476     55,748    117,784    115,233
  Sales and marketing              45,299     43,550     83,326     92,133
  Research and development         23,234     23,540     48,036     48,764
  General and administrative       42,939     48,574     92,087    103,065
  Restructuring and other
   charges                            470     85,123      5,245    101,384
  Amortization of other
   intangible assets                3,061      2,537      6,282      5,175
                                ---------  ---------  ---------  ---------
    Total costs and expenses      172,479    259,072    352,760    465,754
                                ---------  ---------  ---------  ---------
Operating income (loss)            84,140    (17,039)   158,854     11,544
  Other loss, net                 (10,266)    (5,219)   (14,559)    (8,858)
                                ---------  ---------  ---------  ---------
Income (loss) from continuing
 operations before income taxes
 and income (loss) from
 unconsolidated entities           73,874    (22,258)   144,295      2,686
                                ---------  ---------  ---------  ---------
Income tax expense (benefit)       29,570     (8,059)    53,102     (1,410)
Income (loss) from
 unconsolidated entities, net
 of tax                                 -      1,171          -       (590)
                                ---------  ---------  ---------  ---------
Income (loss) from continuing
 operations, net of tax            44,304    (13,028)    91,193      3,506
(Loss) income from discontinued
 operations, net of tax            (8,532)   (55,161)    10,094    (78,850)
                                ---------  ---------  ---------  ---------
Net income (loss)                  35,772    (68,189)   101,287    (75,344)
Less: Net income attributable
 to noncontrolling interest in
 subsidiary                          (898)      (989)    (1,393)    (1,895)
                                ---------  ---------  ---------  ---------
Net income (loss) attributable
 to VeriSign, Inc. and
 subsidiaries common
 stockholders                   $  34,874  $ (69,178) $  99,894  $ (77,239)
                                =========  =========  =========  =========

Basic income (loss) per share
 attributable to VeriSign, Inc.
 and subsidiaries common
 stockholders from:
  Continuing operations         $    0.23  $   (0.07) $    0.47  $    0.01
  Discontinued operations           (0.05)     (0.28)      0.05      (0.39)
                                ---------  ---------  ---------  ---------
  Net income (loss)             $    0.18  $   (0.35) $    0.52  $   (0.38)
                                =========  =========  =========  =========

Diluted income (loss) per share
 attributable to VeriSign, Inc.
 and subsidiaries common
 stockholders from:
  Continuing operations         $    0.22  $   (0.07) $    0.47  $    0.01
  Discontinued operations           (0.04)     (0.28)      0.05      (0.38)
                                ---------  ---------  ---------  ---------
  Net income (loss)             $    0.18  $   (0.35) $    0.52  $   (0.37)
                                =========  =========  =========  =========

Shares used to compute net
 income (loss) per share
 attributable to VeriSign, Inc.
 and subsidiaries
 common stockholders:
  Basic                           192,649    195,515    192,481    201,032
                                =========  =========  =========  =========
  Diluted                         193,426    195,515    193,116    206,488
                                =========  =========  =========  =========

Amounts attributable to
 VeriSign, Inc. and
 subsidiaries common
 stockholders:
  Income (loss) from continuing
   operations, net of tax       $  43,406  $ (14,017) $  89,800  $   1,611
  (Loss) income from discontinued
   operations, net of tax          (8,532)   (55,161)    10,094    (78,850)
                                ---------  ---------  ---------  ---------
  Net income (loss) attributable
   to VeriSign, Inc. and
   subsidiaries common
   stockholders                 $  34,874  $ (69,178) $  99,894  $ (77,239)
                                =========  =========  =========  =========




                  VERISIGN, INC. AND SUBSIDIARIES
         CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                          (In thousands)
                           (Unaudited)


                                                      Six Months Ended
                                                          June 30,
                                                  ------------------------
                                                      2009         2008
                                                  -----------  -----------
Cash flows from operating activities:
  Net income (loss)                               $   101,287  $   (75,344)
  Adjustments to reconcile net income (loss) to
   net cash provided by operating activities:
     Loss (gain) on divestiture of businesses,
      net of tax                                       37,305      (33,022)
     Depreciation of property and equipment            35,116       61,162
     Amortization of other intangible assets            6,282       17,452
     Estimated losses (reversals) on assets held
      for sale                                        (21,027)      71,415
     Stock-based compensation                          28,096       56,331
     Loss on disposal of property and equipment         1,366       80,418
     Impairment of goodwill                                 -       45,793
     Excess tax benefit associated with
      stock-based compensation                        (94,529)           -
     Other, net                                        (1,749)       2,630
  Changes in operating assets and liabilities:
     Accounts receivable, net                           8,802       31,186
     Prepaid expenses and other assets                (10,216)      (5,542)
     Accounts payable and accrued liabilities          19,545      (99,581)
     Accrued restructuring costs                      (21,093)      28,401
     Deferred revenues                                 32,080       65,658
                                                  -----------  -----------
        Net cash provided by operating activities     121,265      246,957
                                                  -----------  -----------

Cash flows from investing activities:
  Proceeds from maturities and sales of
   investments                                        117,901          100
  Proceeds from sale of property and equipment              -       48,843
  Purchases of property and equipment                 (40,815)     (60,769)
  Proceeds received from divestiture of
   businesses, net of cash contributed                235,500       60,613
  Other investing activities                           (3,466)       1,110
                                                  -----------  -----------
        Net cash provided by investing activities     309,120       49,897
                                                  -----------  -----------

Cash flows from financing activities:
  Proceeds from issuance of common stock from
   option exercises and employee stock purchase
   plan                                                20,945       92,527
  Repurchases of common stock                         (22,637)  (1,148,380)
  Proceeds from credit facility                             -      200,000
  Repayment of short-term debt related to credit
   facility                                                 -     (200,000)
  Excess tax benefit associated with stock-based
   compensation                                        94,529            -
  Dividend paid to noncontrolling interest in
   subsidiary                                            (101)        (723)
                                                  -----------  -----------
        Net cash provided by (used in) financing
         activities                                    92,736   (1,056,576)
                                                  -----------  -----------
Effect of exchange rate changes on cash and cash
 equivalents                                           (3,837)       4,017
                                                  -----------  -----------
Net increase (decrease) in cash and cash
 equivalents                                          519,284     (755,705)
Cash and cash equivalents at beginning of period      789,068    1,376,722
                                                  -----------  -----------
Cash and cash equivalents at end of period        $ 1,308,352  $   621,017
                                                  ===========  ===========
Supplemental cash flow disclosures:
  Cash paid for interest, net of capitalized
   interest                                       $    19,521  $    18,218
                                                  ===========  ===========
  Dividend payable to noncontrolling interest in
   subsidiary                                     $       706  $         7
                                                  ===========  ===========




                  VERISIGN, INC. AND SUBSIDIARIES
             STATEMENTS OF OPERATIONS RECONCILIATION
              (In thousands, except per share data)
                           (Unaudited)



                                 Three Months Ended     Six Months Ended
                                    June 30, 2009         June 30, 2009
                                --------------------  --------------------
                                         Net Income             Net Income
                                           (loss)                (loss)
                                         attributable          attributable
                                         to VeriSign,          to VeriSign,
                               Operating   Inc. and   Operating  Inc. and
                                 Income  Subsidiaries  Income  Subsidiaries
                               ---------  ---------  ---------  ---------

GAAP as reported               $  84,140  $  34,874  $ 158,854  $  99,894
  Discontinued
   operations                                 8,532               (10,094)
  Non-core
   businesses in
   continuing
   operations (1)                   (938)      (952)    (1,111)    (2,062)
                               ---------  ---------  ---------  ---------
  Core operations                 83,202     42,454    157,743     87,738
  Adjustments to
   core operations (1):
     Stock-based
      compensation                11,549     11,549     22,227     22,227
     Amortization of
      other
      intangible
      assets                       3,061      3,061      6,282      6,282
     Restructuring
      costs                          320        320      4,930      4,930
  Tax adjustment (2)                          3,214                   401
                               ---------  ---------  ---------  ---------
Non-GAAP as adjusted           $  98,132  $  60,598  $ 191,182  $ 121,578
                               =========  =========  =========  =========

Diluted shares                              193,426               193,116

Per diluted share,
 core operations                          $    0.22             $    0.45
                                          =========             =========
Per diluted share,
 non-GAAP as
 adjusted                                 $    0.31             $    0.63
                                          =========             =========





(1) As of June 30, 2009, the Company's business consists of the following
    reportable segments: Internet Infrastructure and Identity Services
    which consists of Naming Services, and Authentication Services
    comprising of Business Authentication and User Authentication; and
    Other Services which consists of the continuing operations of non-core
    businesses and legacy products and services from certain divested
    businesses.

(2) Non-GAAP tax is calculated as 30% of income from continuing operations,
    excluding noncontrolling interest in subsidiary, which is presented net
    of tax on the Statement of Operations.

    VeriSign provides quarterly and annual financial statements that are
    prepared in accordance with generally accepted accounting principles
    (GAAP). Along with this information, we typically disclose and discuss
    certain non-GAAP financial information in our quarterly earnings
    release, on investor conference calls and during investor conferences
    and related events.  This non-GAAP financial information does not
    include the following types of financial measures that are included in
    GAAP: discontinued operations, non-core businesses in continuing
    operations, stock-based compensation, amortization of other intangible
    assets, impairments of goodwill and other intangible assets, and
    restructuring costs. Non-GAAP financial information is also adjusted
    for a 30% tax rate which differs from the GAAP tax rate.

    Management believes that this non-GAAP financial data supplements our
    GAAP financial data by providing investors with additional information
    that allows them to have a clearer picture of the company's core
    operations. The presentation of this additional information is not
    meant to be considered in isolation or as a substitute for results
    prepared in accordance with GAAP. We believe that the non-GAAP
    information enhances the investors' overall understanding of our
    financial performance and the comparability of the company's operating
    results from period to period. Above, we have provided a reconciliation
    of the non-GAAP financial information that we provide each quarter with
    the comparable financial information reported in accordance with GAAP
    for the given period.


SUPPLEMENTAL FINANCIAL
 INFORMATION
                                        Three months ended
                     -----------------------------------------------------
                                           December   September
                      June 30,  March 31,     31,        30,     June 30,
                        2009      2009       2008       2008       2008
                     ---------- ---------  ---------  ---------  ---------
Revenues from core
 operations (1)      $  255,248 $ 252,212  $ 248,123  $ 241,322  $ 234,448
                     ========== =========  =========  =========  =========







                    VERISIGN, INC. AND SUBSIDIARIES
                 STATEMENTS OF OPERATIONS RECONCILIATION
                  (In thousands, except per share data)
                                (Unaudited)

                     Three Months Ended             Six Months Ended
                        June 30, 2008                 June 30, 2008
                ----------------------------  -----------------------------
                                 Net Income                    Net Income
                                   (loss)                        (loss)
                               attributable                  attributable
                               to VeriSign,                  to VeriSign,
                  Operating      Inc. and       Operating      Inc. and
                    Income     Subsidiaries       Income     Subsidiaries
                -------------  -------------  -------------- -------------

GAAP as
 reported         $   (17,039)   $   (69,178)   $     11,544   $   (77,239)
   Discontinued
    operations                        55,161                        78,850
   Non-core
    businesses
    in continuing
    operations (1)        355           (128)          6,400         8,876
                -------------  -------------  -------------- -------------
   Core
    operations        (16,684)       (14,145)         17,944        10,487
   Adjustments
    to core
    operations (1):
     Stock-based
      compensation     16,790         16,790          30,943        30,943
     Amortization
      of other
      intangible
      assets            2,537          2,537           5,174         5,174
     Restructuring
      costs            82,280         82,280          96,728        96,728
   Tax
    adjustment (2)                   (33,957)                      (46,618)
                -------------  -------------  -------------- -------------
Non-GAAP as
 adjusted         $    84,923    $    53,505    $    150,789   $    96,714
                =============  =============  ============== =============

Diluted shares                       202,505                       206,488

Per diluted
 share, core
 operations                      $     (0.07)                  $      0.05
                               =============                 =============
Per diluted
 share,
 non-GAAP as
 adjusted                        $      0.26                   $      0.47
                               =============                 =============


(1) The Company's business consists of the following reportable segments:
    Internet Infrastructure and Identity Services which consists of Naming
    Services, and Authentication Services comprising of Business
    Authentication and User Authentication; and Other Services which
    consists of the continuing operations of non-core businesses and legacy
    products and services from certain divested businesses.

(2) Non-GAAP tax is calculated as 30% of income from continuing operations,
    excluding non-controlling interest in subsidiary, which is presented
    net of tax on the Statement of Operations.

Use of Non-GAAP Financial Information

VeriSign provides quarterly and annual financial statements that are prepared in accordance with generally accepted accounting principles (GAAP). Along with this information, we typically disclose and discuss certain non-GAAP financial information in our quarterly earnings releases, on investor conference calls and during investor conferences and related events. This non-GAAP financial information does not include the following types of financial measures that are included in GAAP: discontinued operations, non-core businesses in continuing operations, stock-based compensation, amortization of other intangible assets, impairments of goodwill and other intangible assets, and restructuring costs. Non-GAAP financial information is also adjusted for a 30% tax rate, which differs from the GAAP tax rate.

Management believes that this non-GAAP financial data supplements our GAAP financial data by providing investors with additional information that allows them to have a clearer picture of the company's core operations. The presentation of this additional information is not meant to be considered in isolation or as a substitute for results prepared in accordance with GAAP. We believe that the non-GAAP information enhances the investors' overall understanding of our financial performance and the comparability of the company's operating results from period to period.

The information in this Current Report on Form 8-K shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Contact Information