EX-99.1 2 dex991.htm PRO FORMA FINANCIAL INFORMATION Pro forma financial information

Exhibit 99.1

VERISIGN, INC. AND SUBSIDIARIES

PRO FORMA FINANCIAL STATEMENT INFORMATION

(Unaudited)

On March 2, 2009, VeriSign, Inc. (the “Company”) entered into an asset purchase agreement (the “Agreement”) with Transaction Network Services, Inc., a Delaware corporation (the “Purchaser”) for the sale of its Communications Services (“Communications”) business for cash consideration of $230.0 million, subject to certain adjustments to reflect normal fluctuations in working capital. On May 1, 2009, the divestiture transaction was completed for cash proceeds of $226.2 million after certain initial adjustments to reflect the parties’ current estimate of working capital associated with the Communications Services business as of the closing date. The divestiture transaction will be subject to a final adjustment to reflect the actual working capital balances as of the closing date.

The unaudited Pro Forma Condensed Consolidated Balance Sheet Information as of December 31, 2008 set forth below has been presented after giving effect to the Communications business divestiture transaction as if it had occurred on December 31, 2008. The Company has not presented the unaudited Pro Forma Condensed Consolidated Statement of Operations information because the Communications business was reported as discontinued operations in the Company’s fiscal 2008 Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 3, 2009.

The unaudited pro forma financial statement information presented herein has been derived primarily from the historical audited consolidated financial statements of the Company included in its fiscal 2008 Annual Report on Form 10-K.

 

 

The unaudited pro forma financial statement information presented herein has been provided for informational purposes and should not be considered indicative of the financial condition or results of operations that would have been achieved had the divestiture occurred as of the periods presented. In addition, the unaudited pro forma financial statement information presented herein does not purport to indicate balance sheet data or results of operations as of any future date or for any future period. The unaudited pro forma financial statement information presented herein, including the notes thereto, should be read in conjunction with the historical financial statements of the Company included in its fiscal 2008 Annual Report on Form 10-K.

 

VERISIGN, INC. AND SUBSIDIARIES

PROFORMA CONDENSED CONSOLIDATED BALANCE SHEET

(In thousands, except share data)

(Unaudited)

 

     December 31, 2008  
   As Reported (1)     Communications
Services
Divestiture		     Pro Forma  
ASSETS       

Current assets:

       

Cash and cash equivalents

    $ 789,068     $ 226,196 (2)   $ 1,015,264  

Accounts receivable, net of allowance for doubtful accounts of $1,208 at December 31, 2008

      83,749       —         83,749  

Prepaid expenses and other current assets

      268,178       (1,238 )     266,940  

Assets held for sale

      483,840       (236,199 )     247,641  
                        

Total current assets

      1,624,835       (11,241 )     1,613,594  
                        

Property and equipment, net

      382,241       —         382,241  

Goodwill

      283,109       —         283,109  

Other intangible assets, net

      35,312       —         35,312  

Restricted cash

      1,858       —         1,858  

Other assets

      245,877       (65 )     245,812  
                        

Total long-term assets

      948,397       (65 )     948,332  
                        

Total assets

    $ 2,573,232     $ (11,306 )   $ 2,561,926  
                        
LIABILITIES AND STOCKHOLDERS’ EQUITY       

Current liabilities:

       

Accounts payable and accrued liabilities

    $ 263,535     $ (8,193 )   $ 255,342  

Accrued restructuring costs

      28,920       —         28,920  

Deferred revenues

      629,800       —         629,800  

Deferred tax liabilities

      5,463       —         5,463  

Liabilities related to assets held for sale

      49,160       (12,182 )     36,978  
                        

Total current liabilities

      976,878       (20,375 )     956,503  
                        

Long-term deferred revenues

      215,281       —         215,281  

Long-term accrued restructuring costs

      3,037       —         3,037  

Convertible debentures

      1,261,655       —         1,261,655  

Long-term tax liability

      16,378       —         16,378  
                        

Total long-term liabilities

      1,496,351       —         1,496,351  
                        

Total liabilities

      2,473,229       (20,375 )     2,452,854  
                        

Commitments and contingencies

       

Minority interest in subsidiaries

      49,208       —         49,208  

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: 191,547,795 excluding 112,717,587 held in treasury, at December 31, 2008

      304       —         304  

Additional paid-in capital

      21,472,895       —         21,472,895  

Accumulated deficit

      (21,439,410 )     9,069       (21,430,341 )

Accumulated other comprehensive income

      17,006       —         17,006  
                        

Total stockholders’ equity

      50,795       9,069       59,864  
                        

Total liabilities and stockholders’ equity

    $ 2,573,232     $ (11,306 )   $ 2,561,926  
                        

 

(1) As reported in the Company’s fiscal 2008 Annual Report on Form 10-K.

 

(2) Represents cash proceeds received, less estimated transaction costs incurred in connection with the divestiture.