VeriSign posts $78M in MoCo revenue

VeriSign's mobile content group posted $78 million in revenues for its first quarter, and while it's no shocker since the company forecasted $70 million to $75 million for the quarter, the figure is still remarkably lower than its $114 million in revenue last quarter. Part of the decrease comes from the SMS and MMS unit's move to the company's communications and commerce group, which would have added an additional $15 million in revenue for the quarter. Still, the content group said the spiral will continue next quarter, which should bring in about $65 million in revenue. After that, the company expects its acquisition of m-Qube to bolster revenue, and by the third quarter the unit should be back in shape. The conference call also made it clear that VeriSign paid about four to five times the expected 2006 net revenue of m-Qube at acquisition, which some insiders say is rather high. Deals with Verizon and at least one BREW-based MVNO should also help the company moving forward.

For more on VeriSign's Q1:
- see this conference call transcript from SeekingAlpha.com