VeriSign Earnings in Line

Updated from 5:11 p.m. EDT

Digital services company VeriSign(VRSN Quote - Cramer on VRSN - Stock Picks) swung to a loss on a revenue drop of 6% in the second quarter and issued weak guidance for the third quarter.

VeriSign on Thursday reported a net loss of $4.71 million, or 2 cents a share, for the second quarter of 2007, compared with a profit of $376.8 million in the same quarter of 2006.

A year ago, tax benefits of $327 million and a charge of more than $13 million in stock option expenses were included in the results.

Excluding items, earnings were in line with Street expectations at 25 cents a share, compared with 24 cents a share the year before.

Revenue of $368 million during the quarter was in line with consensus expectations but down from $391.85 million the year before. The results include $4 million of revenue related to the Jamba Services business that is for sale.

Shares of VeriSign were off 79 cents, or 2.6%, to $30 in after-hours trading.

VeriSign's Internet services group, which includes security services and information services, posted revenue of $225 million in the second quarter of 2007.

The information services business ended the quarter with approximately 73 million active domain names in .com and .net, representing a 5% increase over the first quarter of 2007 and a 27% increase year over year.

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