VRSN
#Thank you, Jim
Revenue for the third quarter totaled $292 million, up 1.7% year-over-year and up by 1.3% sequentially
During the quarter, 59% of our revenue was from customers in the United States and 41% was from foreign customers
As it relates to our GAAP results, operating income in the third quarter totaled $181 million, compared with $175 million in the third quarter of 2016. The operating margin in the quarter came to 61.9% compared to 60.8% in the same quarter a year ago
Net income totaled $115 million compared to $114 million a year earlier, which produced diluted earnings per share of $0.93 in the third quarter this year compared to $0.90 for the third quarter last year
As of September 30, 2017, the company maintained total assets of $2.9 billion and total liabilities of $4.1 billion
Assets included $2.4 billion of cash, cash equivalents and marketable securities, of which $757 million were held domestically with the remainder held abroad
I'll now review some additional third quarter financial metrics, which include non-GAAP operating margin, non-GAAP earnings per share, operating cash flow and free cash flow
I will then discuss our 2017 full-year guidance
As it relates to non-GAAP metrics, third quarter operating expense, which excludes $14 million in stock-based compensation totaled $97 million, as compared to $100 million both last quarter and the same quarter a year ago
While non-GAAP operating expenses were lower in the second quarter, we do expect an increase in sales and marketing spending in the fourth quarter
Non-GAAP operating margin for the third quarter was 66.7% compared to 65.3% in the same quarter of 2016. Non-GAAP net income for the third quarter was $124 million, resulting in non-GAAP diluted earnings per share of $1 based on a weighted average diluted share count of 124.1 million shares
This compares to $0.93 in the third quarter of 2016 and $1.05 last quarter, based on 127.7 million and 124.0 million weighted average diluted shares respectively
Operating cash flow for the third quarter was $175 million and free cash flow was $153 million, compared with $171 million and $165 million respectively for the third quarter last year
Free cash flow in the third quarter was lower, partially due to a timing some capital expenditures
Dilution related to convertible debentures was 24 million shares, based on average share price during the third quarter, compared with 20.8 million for the same quarter of 2016 and 22.5 million shares last quarter
The share count was reduced by the full effect of second quarter 2017 repurchase activity and the weighted effect of the 1.5 million shares repurchased during the third quarter
With respect to full year 2017 guidance, revenue for 2017 is now expected to be in the range of $1.161 billion to $1.166 billion, increased and narrowed from the $1.155 billion to $1.165 billion range provided on our prior earnings call
Full year 2017 non-GAAP operating margin is now expected to be between 65% and 65.5% increased and now from the 64.5% to 65.25% range provided on our prior earnings call
Our non-GAAP interest expense and non-GAAP non-operating income net is still expected to be an expense of between $103 million and $110 million
Capital expenditures for the year are now expected to be between $45 million and $55 million, changed from the $40 million to $50 million range provided on the last call
And cash taxes for the year are still expected to be between $20 million and $30 million
The majority of expected cash taxes in 2017 are foreign, primarily because of domestic tax attributes, including cash tax benefits from our convertible debentures
As we said in prior calls, these convertible debentures are an important part of our capital structure, and our intention based on current conditions is not to redeem these debentures, which will allow the cash tax benefits to continue to accrue
In summary, the company continues to demonstrate sound financial performance during the third quarter of 2017. Now, I will turn the call back to Jim for his closing remarks
