Telecom services firm NeuStar (NSR) is perhaps be
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Telecom services firm NeuStar ( NSR ) is perhaps best known for its phone number portability service. But the company is striving to diversify its revenue base in both the enterprise and information services markets.
The company operates the U.S. government-mandated Number Portability Administration Center (NPAC) database, which allows consumers to keep their phone numbers even when they switch service providers. This contract ends in 2015 and will be up for renewal in 2013.
But as third-quarter results show, NeuStar is seeing fast growth in new areas. Enterprise services revenue rose 14% vs. a year ago to $43.6 million — 21% of total revenue for the quarter.
Meanwhile, NeuStar reported $42.3 million in information services revenue during the same quarter, thanks to its acquisition of TARGUSinfo in the fourth quarter of last year.
The Sterling, Va.-based firm said on Nov. 5 that it projects full-year revenue of $825 million to $835 million, up 33% to 35% from a record $620 million achieved in 2011. The stock's SMR Rating of A reflects high return on equity — 29% last year.