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NeuStar announced results for its first quarter ended March 31, 2006 and raised its guidance for full year 2006
May 5, 2006
3 Min Read
STERLING, Va. -- NeuStar, Inc. (NYSE:NSR) , a provider of essential clearinghouse services to the communications industry, today announced results for its first quarter ended March 31, 2006 and raised its guidance for full year 2006.
Summary of First Quarter Results
Revenue for the first quarter of 2006 totaled $76.2 million, compared to $57.8 million in the first quarter of 2005.
Net income for the first quarter of 2006 totaled $18.3 million, or $0.24 per diluted share, compared to $14.6 million, or $0.19 per diluted share, in the first quarter of 2005. Diluted per-share calculations are based on diluted weighted average common shares outstanding of 77.7 million for the first quarter of 2006 compared to 75.7 million for the first quarter of 2005. The first quarter 2006 results included $2.4 million of pre-tax, non-cash, stock-based compensation expense recognized in accordance with FASB Statement No. 123(R).
Discussion of First Quarter Results
NeuStar's year-over-year quarterly revenue growth of 31.8% was driven primarily by 34% growth in transactions on contracts to provide telephone number portability services in the United States, which totaled 54.1 million transactions for the first quarter. In prior guidance provided on February 6th, 2006, year-over-year transaction growth for the first quarter of 2006 was projected at 28%.
Addressing revenue increased 18.7% to $23.4 million, as a result of continued growth in new communications services, such as Internet telephony and Common Short Codes. In addition, the continued expansion of carrier networks contributed to the demand for addressing services.
Interoperability revenue increased 7.9% to $14.1 million, due to an increase in wireline and wireless competition and the associated movement of end users from one communication service provider to another, carrier consolidation, and broader usage of our expanding service offerings such as enhanced order management services for wireless data and Internet telephony providers.
Infrastructure and other revenue increased 54.6% to $38.6 million primarily due to increased demand for the company's network management services in support of activities such as service disconnects, changes to the features and functions provided by service providers, as well as to the vendors that supply those features and functions and the implementation of new technologies.
Total operating expense for the first quarter of 2006 rose 37.7% to $45.9 million from $33.3 million in the comparable quarter of 2005, primarily due to higher costs related to supporting ongoing revenue growth and business expansion initiatives, as well as expenses related to operations as a public company. In addition, first quarter 2006 results included $2.4 million of pre-tax, non-cash, stock-based compensation expense recognized in accordance with FASB Statement No. 123(R). Total headcount at March 31, 2006 increased to 498 from 451 at March 31, 2005.
At March 31, 2006, the company had $113.5 million in cash, cash equivalents and short-term investments, an increase of $10.0 million compared to December 31, 2005, excluding the $61.8 million in cash paid in April for the acquisition of UltraDNS.
Neustar Inc. (NYSE: NSR)
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