DNS - Neustar Reports Q2 Results, Stock Repurchase

Neustar, which sells technology and directory services to its carrier and enterprise customers, has announced results for the quarter ended June 30, 2010, saying net income increased 17 percent from the second quarter of 2009 to $28.6 million.

Company officials say the firm increased its EBITDA margin guidance for full-year 2010 and announced the repurchase of up to $300 million of its Class A common shares.  

"Our financial results demonstrate the ability to generate strong profits and cash flows, while continuing to deliver double-digit revenue growth," says Jeff Ganek, Neustar's chairman and chief executive officer.

Revenue increased 11 percent from the second quarter of 2009 to $129.0 million. Earnings per diluted share was $0.37, an increase of 16 percent from $0.32 per diluted share in the second quarter of 2009.

EBITDA totaled $57.0 million, or 44 percent margin, an increase of 15 percent from $49.4 million, or 43 percent, in the second quarter of 2009. Cash, cash equivalents and short-term investments totaled $362.4 million as of June 30, 2010.

Earlier this month Neustar announced that it released Visual Application Monitoring, a new Webmetrics (News - Alert) service within Neustar's Internet Infrastructure Services portfolio.

Visual Application Monitoring provides website operators with control over the monitoring of rich media applications. It produces highly granular performance metrics about Flash and Silverlight applications – including the breakdown of each of the steps in the user experience. It simulates these transactions as frequently as every minute to verify that the applications are available and performing around the clock, company officials say.

"Visual Application Monitoring is ultimately about transparency," said Alex Berry, senior vice president of Neustar's Internet Infrastructure Services group. "We've worked with our customers to provide them with the ability to interact with Flash and Silverlight, and to successfully monitor the full palette of interactive features resident in their rich media applications."