Feb 6 (Reuters) - Internet services company VeriSign ( VRSN )

reported a 3.9% rise in fourth-quarter revenue on

Thursday, fueled by steady demand for domain registrations as

businesses amplify their online presence, sending its shares 1%

higher in extended trading.

An increasing number of businesses are expanding their

digital presence by acquiring and renewing domain names to reach

a wider online audience, benefiting domain registry service

providers such as VeriSign ( VRSN ).

VeriSign ( VRSN ) primarily manages the domain-name registries for

two of the internet's most valuable domains, .com and .net, and

also operates two of the world's 13 global internet root

servers.

The company reported revenue of $395.4 million for the

fourth quarter ended December 31, about 4% higher than the

$380.4 million reported a year ago.

The Reston, Virginia-based company posted a profit of $2 per

share for the quarter, down from $2.60 per share it reported in

the same period last year.

VeriSign ( VRSN ) processed 9.5 million new domain name registrations

for .com and .net in the fourth quarter, compared to 9 million a

year ago.