Non-GAAP net revenues for Q2 FY13 were $430 million, compared to $479 million a year ago, a 10% decrease. GAAP net revenues were $426 million, compared to $472 million a year ago, a 10% decrease. Non-GAAP net income per diluted share was $0.42, compared to $0.64 a year ago, a 34% decrease. GAAP net loss per diluted share was $0.54, compared to net profit of $0.03 a year ago. The table below provides additional summary non-GAAP and GAAP financial information and comparisons.
Second Quarter Financial Highlights
- Non-GAAP net revenues of $430 million
- GAAP net revenues of $426 million
- Non-GAAP net income per diluted share of $0.42
- GAAP net loss per share of $0.54, including $0.44 per share for certain legal charges
- Operating cash flow of $79 million
Commenting on the results, Richard McGinn, Interim Chief Executive Officer, said, “We are keenly aware of the significant short-term challenges impacting our fiscal year 2013 financial results. To regain our momentum, we are addressing the critical issues head-on. We have empowered a new senior leadership team. We are substantially increasing our R&D investment to best serve our customers and regain competitiveness in markets where we have product gaps. And, we have increased our focus on cash management, as evidenced by our generation of $79 million of operating cash flow in the second quarter.
“While we are pleased with many aspects of our business, the next twelve months will be devoted to investing heavily in our customers, our products, and our people, to reverse the current trend and reposition ourselves to resume growth. We believe there is significant upside potential for both the payment technology business and our company,” concluded McGinn.
Additional Financial and Business Highlights
- Displaced incumbent competitors at twelve U.S. multi-lane retailers while not losing any large U.S merchant customers.
- Won a two-year tender with Sberbank, the largest bank in Russia, to deliver 450K VX systems.
- Secured significant orders with major customers in Spain and Italy.
- Announced a new GlobalBay SMB mobile point of sale application for our channel partners.
- Achieved service revenue record of 35% of total non-GAAP net revenues in Q2.
- Completed the acquisition of EFTPOS New Zealand for approximately $57 million.
Guidance for the third fiscal quarter of 2013 is as follows:
- Non-GAAP net revenues of approximately $400 million
- Non-GAAP net income per diluted share of approximately $0.20
The company expects modest sequential increases in non-GAAP net revenues and non-GAAP net income per diluted share in Q4.
Verifone will hold its earnings conference call today at 1:30 pm (PT). To listen to the call and view the slides, visit Verifone’s website http://ir.verifone.com. To listen to the call over the phone, dial (877) 280-4958 within the U.S., or (857) 244-7315 outside the U.S., and use conference passcode 5960 5148. The recorded audio webcast will be available on Verifone's website until June 12, 2013.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations or beliefs and on currently available competitive, financial and economic data and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the forward-looking statements herein due to changes in economic, business, competitive, technological and/or regulatory factors, and other risks and uncertainties affecting the operation of the business of Verifone Systems, Inc. These risks and uncertainties include, but are not limited to: our assumptions, judgments and estimates regarding the impact on our business of the continued uncertainty in the global economic environment and financial markets, our ability to identify and complete acquisitions and strategic investments and successfully integrate them into our business, whether the expected benefits of our business initiatives are achieved, our ability to protect against fraud, the status of our relationship with and condition of third parties such as our contract manufacturers, distributors and key suppliers upon whom we rely in the conduct of our business, our dependence on a limited number of customers, risks and uncertainties related to the conduct of our business and operations internationally, our ability to effectively hedge our exposure to foreign currency exchange rate fluctuations, our dependence on a limited number of key employees, short product cycles, rapidly changing technologies and maintaining competitive leadership position with respect to our payment solution offerings. The forward-looking statements in this press release do not include the potential impact of any acquisitions or divestitures that may be announced and/or completed after the date hereof. For a further list and description of the risks and uncertainties affecting the operations of our business, see our filings with the Securities and Exchange Commission, including our annual report on Form 10-K and our quarterly reports on Form 10-Q. Verifone is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise.
About Verifone Systems, Inc. (www.verifone.com)
Verifone Systems, Inc. (“Verifone”) (NYSE: PAY) is the global leader in secure electronic payment solutions. Verifone provides expertise, solutions and services that add value to the point of sale with merchant-operated, consumer-facing and self-service payment systems for the financial, retail, hospitality, petroleum, government and healthcare vertical markets. Verifone solutions are designed to meet the needs of merchants, processors and acquirers in developed and emerging economies worldwide.
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