Third Quarter Financial Highlights
- Non-GAAP net revenues of $418 million
- GAAP net revenues of $416 million
- Non-GAAP net income per diluted share of $0.24
- GAAP net loss per diluted share of $0.02
- Operating cash flow of $49 million and free cash flow of $31 million
Verifone Systems, Inc. (NYSE: PAY), the global leader in secure electronic payment solutions, today announced financial results for the three months ended July 31, 2013 (“Q3 FY13”). Non-GAAP net revenues for Q3 FY13 were $418 million, compared to $493 million a year ago, a 15% decrease. GAAP net revenues were $416 million, compared to $489 million a year ago, a 15% decrease. Non-GAAP net income per diluted share was $0.24, compared to $0.75 a year ago. GAAP net loss per diluted share was $0.02, compared to net income per share of $0.34 a year ago. The table below provides additional summary non-GAAP and GAAP financial information and comparisons.
“Our revenues and earnings exceeded our guidance, cash flow exceeded our expectation, and we paid down $160 million of debt, bolstering our financial position,” said Richard McGinn, Interim Chief Executive Officer. “We are also pleased by the acquisition of ENZ, which extends to New Zealand our payment-as-a-service business model that is thriving in the Nordics under Point and launching in other geographies such as the U.S. In fact, Q3 Services revenues were up 17% from a year ago. And, with our increased investments in R&D and infrastructure, we are making good progress in bringing to market the advanced products to meet customer demand.”
Additional Financial and Business Highlights
- Achieved record non-GAAP services net revenues of $167 million in Q3
- Continued to accelerate payment-as-a-service offering in the Nordics, New Zealand, U.S. and Australia
- Displaced incumbent competitors at six U.S. multi-lane retailers, continuing a strong record of customer retention and migration to newer products
- Launched the Way2ride taxi payment application and mobile platform for developers
- Announced general availability of GlobalBay Merchant, a mobile point of sale application for tablets
- Named global supplier to one of the United Kingdom's largest merchant acquirers
- Renewed contract with India's largest petro provider to enable electronic payment acceptance network
- Repaid $160 million of debt and amended Credit Agreement to provide additional financial latitude
Guidance for the fourth fiscal quarter of 2013 is as follows:
- Non-GAAP net revenues of $418 million to $422 million
- Non-GAAP net income per diluted share of $0.25
- Free cash flow of $25 million, excluding shareholder settlement payment
The company expects the first fiscal quarter of 2014 to reflect modest sequential improvement to the Q4 guidance.
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) 703-6104 within the U.S., or (857) 244-7303 outside the U.S., and use conference passcode 9838 1859. The recorded audio webcast will be available on Verifone's website until September 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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