DNS - Neustar Reports Increased Profit for 3Q 2010

Neustar, Inc., a provider of carrier and enterprise solutions for sending calls, messages and content across networks has announced its results for the quarter ended September 30, 2010. In addition to  and refined its prior guidance for full-year 2010 announced on October 6, 2010.  

The third quarter results reported that Neustar’s revenue increased 11 percent from the third quarter of 2009 to $130.5 million. Its net income also increased 22 percent from the third quarter of 2009 to $29.9 million.

Earnings per diluted share increased 22 percent from the third quarter of 2009 to $0.39, while EBITDA increased 16 percent from the third quarter of 2009 to $57.9 million, representing a 44% margin. All together, cash, cash equivalents and short-term investments totaled $377.5 million as of September 30, 2010.

"Our results reflect our continuing success in meeting the growing and rapidly changing needs of our global carrier and enterprise customers," said Lisa Hook (News - Alert), Neustar's president and chief executive officer.  "At the same time, we are becoming increasingly central to many types of complex digital networks, and the endpoints and devices connected to them.  As we continue to grow, we will invest in large, fast-growing markets that will augment our existing services and pursue acquisitions that leverage our core competencies."

Consolidated revenue for the quarter totaled $130.5 million, an 11 percent increase from $117.2 million in the third quarter of 2009. This increase was driven by growth in both the Carrier Services and Enterprise Services business segments.

Carrier Services revenue grew 8 percent to $97.7 million, due to an $8.6 million increase in Numbering Services revenue. Of this increase, $9.3 million was due to the established increase in the fixed fee under the company's contracts to provide NPAC Services. These revenue increases were partially offset by lower revenue from IP Services and other Numbering Services;

Consolidated operating expense also increased 8 percent to $82.8 million from $76.8 million for the third quarter of 2009. The $6.0 million increase was primarily due to additional personnel and personnel-related expense to support expansion of the company's operations into new services, businesses and geographies.

"The key leading indicators of our business and the visibility into our revenues provide us the insight to narrow our full-year revenue guidance," commented Paul Lalljie, Neustar's chief financial officer.  "Additionally, while growing shareholder value through operating results, we have repurchased more than one million shares during the third quarter to further increase shareholder returns."

Stefanie Mosca is a Web editor for TMCnet. Previously she worked as a freelance copy editor for Digital Surgeons LLC. She holds a master's degree in journalism from Quinnipiac University and a bachelor's degree in communication from the University of New Haven. To read more of her articles, please visit her columnist page.

Edited by Stefanie Mosca