Global | Change

Verifone Reports Results for the Fourth Quarter and Full Year Fiscal 2014

Revenues and Earnings per Share Exceed Guidance December 15, 2014 SAN JOSE, CA

Fourth Quarter Financial Highlights

  • GAAP and Non-GAAP  net revenues of  $491 million  
  • GAAP net income per share of $0.27 and Non-GAAP net income per diluted share of $0.44
  • Operating cash flow of $52 million

Fiscal Year Financial Highlights

  • GAAP and Non-GAAP net revenues of $1.87 billion
  • GAAP net loss per share of $0.34 and Non-GAAP net income per diluted share of $1.51
  • Operating cash flow of $199 million

VeriFone Systems, Inc. (NYSE: PAY), the global leader in secure electronic payment solutions, today announced financial results for the three months ended October 31, 2014 (“Q4 FY14”) and fiscal year ended October 31, 2014 (“FY14”).  

Revenues - GAAP net revenues were $491 million for Q4 FY14, compared to $431 million a year ago, a 14% increase.  For FY14, GAAP net revenues totaled $1.87 billion, a 10% increase compared to the $1.70 billion result for FY13.  Non-GAAP net revenues for the latest quarter were $491 million, compared to $432 million a year ago, a 13% increase.  Non-GAAP net revenues for FY14 were $1.87 billion, a 9% increase compared to the $1.71 billion result for FY13. 

Earnings per Share - GAAP net income per share for Q4 FY14 was $0.27 compared to a net loss of $2.26 a year ago.  For FY14, GAAP net loss was $0.34 compared to a loss of $2.73 a year ago.  Non-GAAP net income per diluted share for Q4 FY14 was $0.44, compared to $0.27 a year ago, a 63% increase.  Non-GAAP net income per diluted share for FY14 was $1.51, a 5% increase compared to the $1.44 result for FY13. 

The table below provides additional summary GAAP and non-GAAP financial information and comparisons.

Q414 Table 1

“I’m proud of the team at Verifone and pleased with our performance in Q4 and FY14.  We again exceeded our guidance,” said Paul Galant, Chief Executive Officer of Verifone. “We are executing and winning back share by helping our clients to improve their security, upgrade to EMV in the U.S., and take advantage of advances in mobility and digital commerce.  We are halfway through our transformation initiative and are now a more nimble and focused company.  2015 is the Year of Product at Verifone as we leverage our growing Terminal Solutions business to become a platform company providing Payment-as-a-Service and Commerce Enablement.”

Additional Financial and Business Highlights

  • Achieved record North America net revenues
  • Secured 33 U.S. client wins, including eight competitive takeaways
  • Announced global availability of secure commerce architecture and signed agreements to connect more than 20,000 devices through this architecture
  • Continued to grow petroleum business as next generation in-store POS and site controller offerings gained momentum
  • Announced a key Pan-European certification to begin offering MX900 series terminals to clients across Europe
  • Generated record Service net revenues
  • Extended Payment-as-a-Service business in the U.S., Mexico, Australia, New Zealand, and Turkey
  • Expanded network of taxis with payment and media systems and increased fleets carrying digital taxi-top displays
  • Won bid to become the preferred wireless terminal platform for Mexico's largest bank

Guidance

Guidance for the full fiscal year 2015 is as follows:

  • Non-GAAP net revenues of $2,020 million to $2,040 million
  • Non-GAAP net income per diluted share of $1.85 to $1.90

Guidance for the first fiscal quarter of 2015 is as follows:

  • Non-GAAP net revenues of $480 million to $485 million
  • Non-GAAP net income per diluted share of $0.40

Conference Call

Verifone will hold its earnings conference call today, December 15th, at 1:30 pm (PT). To listen to the call and view the slides, visit Verifone’s website http://ir.verifone.com.  The recorded audio webcast will be available on Verifone's website until December 22, 2014.

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., including many factors beyond our control. These risks and uncertainties include, but are not limited to, those associated with: execution of our strategic plan and business and operational initiatives, including whether the expected benefits of our plan and initiatives are achieved within expected timeframes or at all, short product cycles and rapidly changing technologies, our ability to maintain competitive leadership position with respect to our payment solution offerings, our dependence on a limited number of customers, the conduct of our business and operations internationally, our ability to protect our computer systems and networks from fraud, cyber-attacks or security breaches, our assumptions, judgments and estimates regarding the impact on our business of political instability in markets where we conduct business, uncertainty in the global economic environment and financial markets, the status of our relationships with and condition of third parties such as our contract manufacturers, key customers, distributors and key suppliers upon whom we rely in the conduct of our business, our ability to effectively hedge our exposure to foreign currency exchange rate fluctuations, and our dependence on a limited number of key employees. 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. The forward-looking statements speak only as of the date such statements are made. 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

Verifone is transforming everyday transactions into opportunities for connected commerce.  We’re connecting more than 27 million payment devices to the cloud—merging the online and in-store shopping experience and creating the next generation of digital engagement between merchants and consumers.  We are built on a 30-year history of uncompromised security.  Our people are known as trusted experts that work with our clients and partners, helping to solve their most complex payments challenges.  We have clients and partners in more than 150 countries, including the world’s best-known retail brands, financial institutions and payment providers.

Verifone.com | (NYSE: PAY) | @verifone

Additional Resources:

http://ir.verifone.com

Download the complete earnings release