VeriSign posts Q1 profit

(Reuters) - Internet security and naming services company VeriSign Inc (VRSN.O) swung to a quarterly profit, helped by an increase in revenue from its core naming business, sending its shares up about 8 percent.

Results for the first quarter were driven by strength in its naming business -- the company's largest segment -- and the authentication services unit.

Revenue from the naming segment rose 17 percent and authentication revenue rose 8 percent, the company said in a conference call with analysts.

The better-than-expected growth in naming was driven by international expansion and strength from domain names being registered for the purpose of online advertising, a company executive said.

For the second quarter, VeriSign forecast revenue from its core business to be flat to slightly up sequentially. It also said expects its Idefense segment to contribute about $10 million to 2009 revenue.

For the first quarter, the company reported earnings of $65.0 million, or 34 cents a share, compared with a loss of $8.1 million, or 4 cents a share, in the year-ago period.

Total revenue rose 8 percent to $255.0 million.

Analysts on average were expecting earnings of 28 cents a share, excluding items, on revenue of $249.0 million, according to Reuters Estimates.

VeriSign, which has been trying to spin-off its slower growing units, sold its its communication services group to TNS (TNS.N) for $230 million in cash in March.