May 22, 2013
Verisign, Inc. (NASDAQ: VRSN) is the market leader for SSL authentication, the system of certificates and tokens that protects most internet transactions, and is also a powerful enterprise security provider. VeriSign stands to gain from the rising demand for digital protection as the internet becomes a more versatile and interactive tool. The company also has an exclusive license for the registration of new and existing internet domains. This business provides Verisign with a stable source of revenue.
Although the company has strong telecommunications, internet security, and web registration businesses, its profitability has suffered as a result of its poorly performing non-core businesses; the firm has acquired many such businesses in recent years in an attempt to boost revenue. In addition to its portfolio of non-core businesses, the company is currently threatened by the commoditization of security software, as falling prices depress profitability.
(Read more at Wikinvest
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