EX-99.(A)(12) 3 dex99a12.htm SUPPLEMENT TO OFFER TO EXCHANGE Supplement to Offer to Exchange
Exhibit (a)(12)
LOGO
 
Supplement to Offer Exchange Outstanding Options to Purchase Common Stock
December 18, 2002
 
To all VeriSign domestic employees eligible to participate in the Offer to Exchange:
 
On November 27, 2002, you were sent an “Offer to Exchange Outstanding Options to Purchase Common Stock.” Section 9 of that document contained selected financial data with respect to VeriSign. This supplement includes that same selected financial data, as well as information regarding our book value per share and deficiency of earnings to cover fixed charges for the periods presented. This document is a supplement to the Offer to Exchange, dated November 27, 2002, and you should read this supplement together with the Offer to Exchange.
 
Selected Financial Data
 
The following table summarizes certain of our consolidated financial data.
 
    
Year Ended
     
Nine Months Ended
  
    
December 31,
2001
     
December 31,
2000
     
September 30,
2002
     
September 30,
2001
  
    
(in thousands, except per share data)
  
Consolidated Statements of Operations Data:
                                    
Revenue
   
$
983,564
 
   
$
474,766
 
   
$
946,666
 
   
$
699,765
 
Costs of revenues
   
 
343,721
 
   
 
163,049
 
   
 
436,084
 
   
 
238,166
 
Total costs and expenses
   
 
14,394,390
 
   
 
3,675,075
 
   
 
5,709,741
 
   
 
13,702,739
 
Operating loss
   
 
(13,410,826
)
   
 
(3,200,309
)
   
 
(4,763,075
)
   
 
(13,002,974
)
Total other income (expense)
   
 
(22,469
)
   
 
86,169
 
   
 
(154,025
)
   
 
(17,456
)
Net income (loss)
   
 
(13,355,952
)
   
 
(3,115,474
)
   
 
(4,921,917
)
   
 
(12,954,842
)
Net income (loss) per share, basic and diluted
   
 
(65.64
)
   
 
(19.57
)
   
 
(20.83
)
   
 
(64.34
)
Shares used in per share computation, basic and diluted
   
 
203,478
 
   
 
159,169
 
   
 
236,283
 
   
 
201,362
 
Other Data:
                                    
Deficiency of earnings to cover fixed charges
   
$
(13,431,536
)
   
$
(3,113,444
)
   
$
(4,915,998
)
   
$
(13,019,184
)
 
The computations of deficiency of earnings to cover fixed charges include us and our consolidated subsidiaries. Earnings consist of pretax losses from continuing operations before minority interest in net loss of subsidiary plus fixed charges. Fixed charges consist of interest expense and that portion of rental expense we believe to be representative of interest.
 
    
As of
    
December 31,
2001
   
December 31,
2000
   
September 30,
2002
     
September 30,
2001
    
(in thousands, except per share data)
Balance Sheet Data:
                              
Cash, cash equivalents and investments
   
$
928,478
   
$
1,235,420
   
$
382,060
 
   
$
1,186,599
Working capital
   
 
256,714
   
 
520,953
   
 
(129,493
)
   
 
294,350
Current assets
   
 
1,090,559
   
 
1,186,432
   
 
607,757
 
   
 
984,167
Non-current assets
   
 
6,446,949
   
 
18,008,790
   
 
1,991,166
 
   
 
5,410,499
Total current liabilities
   
 
833,845
   
 
665,479
   
 
737,250
 
   
 
689,817
Total long-term liabilities
   
 
197,589
   
 
59,135
   
 
244,347
 
   
 
146,203
Total stockholders’ equity
   
 
6,506,074
   
 
18,470,608
   
 
1,617,326
 
   
 
5,558,646
Book value per share
   
$
0.03
   
$
0.09
   
$
0.01
 
   
$
0.03
 
The financial statements included in our annual report on Form 10-K for the fiscal year ended 2001 and our quarterly report on Form 10-Q for the quarter ended September 30, 2002 are incorporated herein by reference. Copies of these reports are available from us upon request and are available to the public on the Web site of the Securities and Exchange Commission at www.sec.gov.