Network Solutions beats Street with record 2Q revenue

Network Solutions, Inc. (Nasdaq: NSOL) reported Thursday that second quarter earnings were up 135 percent compared to a year ago. Net income squeaked past First Call's estimate by a penny, at $5.8 million, or 17 cents a share.

Shares in the company which pioneered Web registration at .com, .net, .org and .edu., and now assists companies in internet technology management, closed at 77 1/4 Wednesday, well below their 52-week high of 153 3/4. In the year ago quarter, Network Solutions earned $2.5 million or 7 cents a share.

Record revenue of $47.5 million was an increase of 132 percent over net revenue of $20.5 million for the second quarter of 1998. Operating income also grew to $8.0 million, 178 percent more than the $2.9 million for the second quarter of 1998.

Network Solutions also said it registered a record 1.2 million net new Internet domain names in the second quarter of 1999, up 166 percent from the second quarter 1998 and up 28 percent from the first quarter 1999.

"For the first six months of 1999, we registered more than 2.1 million new domain names -- that represents more new growth in our registration base than in all of 1998," said Jim Rutt, chief executive officer, Network Solutions in a company release.

Share prices have ridden waves of good news over the quarter, topping estimates for the first quarter, and rising after the company launched a new directory service in June.

Four out of nine analysts covering the stock rate it a "strong buy" according to Zack's Investment Research.