Neustar Announces Results For Fourth Quarter And Full-Year 2009

This press release and the financial tables, including the reconciliations of certain non-GAAP measures to their nearest comparable GAAP measures that may be used periodically by management when discussing the company's financial results with investors and analysts, are available on the company's website under the Investor Relations tab.

About Neustar, Inc.

Neustar, Inc. (NYSE: NSR) solves complex communications challenges and provides market-leading, innovative solutions and directory services to enable trusted communication across networks, applications, and enterprises around the world.  Visit Neustar online at www.neustar.biz.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This press release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements about our expectations, beliefs and business results in the future, such as guidance regarding our 2010 results.  We have attempted, whenever possible, to identify these forward-looking statements using words such as "may," "will," "should," "projects," "estimates," "expects," "plans," "intends," "anticipates," "believes" and variations of these words and similar expressions.  Similarly, statements herein that describe our business strategy, prospects, opportunities, outlooks, objectives, plans, intentions or goals are also forward-looking statements.  We cannot assure you that our expectations will be achieved or that any deviations will not be material.  Forward-looking statements are subject to many assumptions, risks and uncertainties that may cause future results to differ materially from those anticipated.  These potential risks and uncertainties include, among others, the uncertainty of future revenue and profitability and potential fluctuations in quarterly and yearly operating results due to such factors as disruptions to our clearinghouse operations, modifications to our material contracts, our ability to successfully identify and complete acquisitions, integrate and support the operations of businesses we acquire, our ability to redeem auction rate securities, increasing competition, market acceptance of our existing services, our ability to successfully develop and market new services, the uncertainty of whether new services will achieve market acceptance or result in any revenue, and business, regulatory and statutory changes in the communications industry.  More information about potential factors that could affect our business and financial results is included in our filings with the Securities and Exchange Commission, including, without limitation, our Annual Report on Form 10-K for the year ended December 31, 2008 and subsequent periodic and current reports.  All forward-looking statements are based on information available to us on the date of this press release, and we undertake no obligation to update any of the forward-looking statements after the date of this press release.

    
    
    
                                      NEUSTAR, INC.
    
                         CONSOLIDATED STATEMENTS OF OPERATIONS
                         (in thousands, except per share data)
                                             
                                     Three Months Ended     Year Ended
                                        December 31,       December 31,
                                        ------------       ------------
                                       2008      2009     2008      2009
                                       ----      ----     ----      ----
                                        (unaudited)    (audited) (unaudited)
    Revenue:                                
       Addressing                    $35,837   $38,096  $130,736  $134,253
       Interoperability               15,077    16,601    64,305    58,723
       Infrastructure and other       76,499    79,533   293,804   287,409
                                      ------    ------   -------   -------
    Total revenue                    127,413   134,230   488,845   480,385
                                             
    Operating expense:                      
       Cost of revenue (excluding 
        depreciation and amortization 
        shown separately below)       26,606    30,452   105,589   113,260
       Sales and marketing            17,374    24,178    74,182    83,371
       Research and development        5,085     3,385    27,527    16,160
       General and administrative     11,367    14,700    58,407    55,974
       Depreciation and amortization   9,624     9,925    40,582    38,040
       Restructuring charges           1,691     3,289     1,691     6,022
       Impairment of goodwill         64,581         -    93,602         -
       Impairment of long-lived 
        assets                        18,159         -    18,159         -
                                      ------    ------    ------   -------
                                     154,487    85,929   419,739   312,827
                                     -------    ------   -------   -------
    (Loss) income from operations    (27,074)   48,301    69,106   167,558
    Other (expense) income:                 
       Interest and other expense    (11,803)   (1,402)  (16,237)   (6,071)
       Interest and other income       9,912     1,167    13,112     7,519
                                       -----     -----    ------     -----
    (Loss) income before 
     income taxes                    (28,965)   48,066    65,981   169,006
    Provision for income taxes        13,511    20,263    61,687    67,865
                                      ------    ------    ------    ------
    Net (loss) income               $(42,476)  $27,803    $4,294  $101,141
                                    ========   =======    ======  ========
    Net (loss) income per 
     common share:     
       Basic                          $(0.57)    $0.37     $0.06     $1.36
                                      ======     =====     =====     =====
       Diluted                        $(0.57)    $0.37     $0.06     $1.34
                                      ======     =====     =====     =====
    Weighted average common 
     shares outstanding:       
       Basic                          73,951    74,394    74,350    74,301
                                      ======    ======    ======    ======
       Diluted                        73,951    75,685    76,107    75,465
                                      ======    ======    ======    ======

    
    
    
                                     NEUSTAR, INC.
    
                         CONDENSED CONSOLIDATED BALANCE SHEETS
                                    (in thousands)
    
                                                  December 31,  December 31,
                                                      2008         2009
                                                      ----         ----
    ASSETS                                         (audited)    (unaudited)
    Current assets:
       Cash, cash equivalents and short-term
        investments                                 $161,653     $342,191
       Restricted cash                                   496          512
       Accounts and unbilled receivables, net         72,635       67,005
       Prepaid expenses and other current assets      18,205       18,087
       Income taxes receivable                         4,621            -
       Deferred tax assets                            11,079        6,973
                                                      ------        -----
    Total current assets                             268,689      434,768
    
    Property and equipment, net                       64,160       73,881
    Goodwill and intangible assets, net              134,661      127,206
    Other non-current assets                          47,412        6,825
    Deferred tax assets, long-term                     4,244        5,124
                                                       -----        -----
    Total assets                                    $519,166     $647,804
                                                    ========     ========
    
    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current liabilities:
       Accounts payable and accrued expenses         $59,103      $72,052
       Income taxes payable                                -        2,764
       Deferred revenue                               32,530       26,117
       Notes payable and capital lease obligations    10,123       11,222
       Accrued restructuring reserve                   1,867        2,459
       Other liabilities                                 430        3,891
                                                         ---        -----
    Total current liabilities                        104,053      118,505
    
    Deferred revenue, long-term                       11,657        8,923
    Notes payable and capital lease
     obligations, long-term                           11,933       10,766
    Accrued restructuring reserve, long-term           1,589        1,111
    Other liabilities, long-term                       3,281        4,062
                                                       -----        -----
    Total liabilities                                132,513      143,367
    
    Total stockholders' equity                       386,653      504,437
                                                     -------      -------
    Total liabilities and stockholders'
     equity                                         $519,166     $647,804
                                                    ========     ========

SOURCE Neustar, Inc.

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