NeuStar shines as a key provider of registry and clearinghouse services used in telecommunications and Internet networks. The company manages the registry of North American area codes and telephone numbers and the database used by telecom carriers ( Verizon, AT&T) and cable companies (Comcast, Cox Communications) to route phone calls. It is also a leading provider of operations support systems (OSS) clearinghouse services that provide ordering, service provisioning, billing, and customer service functions. In addition, NeuStar operates an Internet registry supporting domain addresses and provides a host of other registry, domain name system, and IP services. The company makes most of its sales in North America.
NeuStar added a new group of services to its offerings in 2011, including caller ID and real-time identification and location applications, as well as lead verification and analytics and licensed data management tools.
Sales and Marketing
In addition to major telecom and cable firms, the company counts among its customers emerging telecom and VoIP service providers, e-commerce companies, marketing and advertising groups, and domain name registrars such as Go Daddy. Although no single customer accounts for more than 10% of sales, NeuStar generates some 60% of revenue under contracts with North American Portability Management, an industry group representing all US telecommunications services providers.
The company's revenue grew 19% in 2011, hitting $620 million, as it saw double-digit growth in both of its traditional segments and sales of more than $20 million from a newly created third segment that was the result of the 2011 acquisition of Targus Information. Net income was also up, jumping more than 50% to $161 million, as NeuStar recorded an income tax benefit of more than $40 million after ceasing operations of its converged messaging services business.
Mergers and Acquisitions
NeuStar uses periodic acquisitions to expand its business. In 2011 the company acquired Targus Information for about $650 million in cash. The Vienna, Virginia-based company provided caller identification and other services that became the basis for a new operating segment - information services. NeuStar also paid $39 million in cash to buy the Numbering Solutions business of Evolving Systems that year to increase the number management and inventory capabilities of its carrier services business segment. – less