Verisign Shares Fall On Mobile Revenue Warning

Verisign is once again the victim of high expectations…”on Wednesday reported a quarterly net profit that almost doubled from a year earlier but investors looking for even better results and a more aggressive outlook pushed the company’s stock down 12 percent after hours”. The problem is with “seasonality” associated with its mobile content business (Jamster in the US, and Jamba in Europe) which resulted in a lower than expected forecast for third quarter revenues. “A majority of the weakness (in the results and outlook) was in mobile content and seasonal weakness in Europe … the outlook was short of what people expected…VeriSign’s Jamster mobile content services, about a third of its business, enables customers to download ringtones, games and graphics to their wireless phone.” Still, mobile revenues for Q3 will be almost double that from the same period in 2004.
I wonder how much of this up and down revenue is due to the disputed subscription business model and the backlash against it…there seems to be some correlation…
Related stories:
Mobile Content Industry Joins In Criticism Of Jamster Model
Jamster Sued For Selling Practices
VeriSign’s A Victim Of High Expectations

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