VeriSign could recognize $2.5 million in incremental sequential revenue in its fiscal first quarter due to a significant increase in domain names, according to Credit Suisse analyst Philip Winslow.

After querying the .com and .net zone files, the analyst calculated that 54.2 million domain names existed as of the end of February -- an increase of approximately 1.3 million names during the month.

Assuming a consistent level of domain name net additions in March, as well as an even roll on of the incremental 3.8 million net additions during the quarter, the analyst estimates that VeriSign would recognize approximately $2.5 million in incremental sequential revenue and approximately $17 million to $23 million incremental sequential deferred revenue in its first fiscal quarter.

The analyst noted that the increased volume of paid click advertising practices creates a degree of increased volatility in month-to-month comparisons. He expects the actual number of domain names in VeriSign’s two zone files at the end of the quarter to be slightly larger than reported by the company due to the five-day “grace” period of domain names.

"In our opinion, the growth outlook for the company’s core businesses has been improving, and we continue to believe that the mobile content market remains an attractive, long term growth catalyst," said Winslow.

The analyst maintained an "outperform" rating and $27 price target on the stock.