Global | Change

Verifone Reports Results for the Second Quarter of Fiscal 2014

Revenues and Earnings per Share Exceed Guidance June 05, 2014 SAN JOSE, CA

Verifone Systems, Inc. (NYSE: PAY):

Second Quarter Financial Highlights

  • GAAP net revenues of $466 million
  • Non-GAAP net revenues of $467 million
  • GAAP net loss per diluted share of $0.22
  • Non-GAAP net income per diluted share of $0.37
  • Operating cash flow of $57 million

Verifone Systems, Inc. (NYSE: PAY), the global leader in secure electronic payment solutions, today announced financial results for the three months ended April 30, 2014 (“Q2 FY14”). GAAP net revenues were $466 million, compared to $426 million a year ago, a 9% increase. Non-GAAP net revenues for Q2 FY14 were $467 million, compared to $430 million a year ago, a 9% increase. GAAP net loss per diluted share was $0.22, compared to a net loss of $0.54 a year ago. Non-GAAP net income per diluted share was $0.37, compared to $0.42 a year ago.

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


Q214 Earnings

“I’m very pleased with our second quarter financial results, which exceeded our guidance, and the continued progress in our operational initiatives,” said Paul Galant, Chief Executive Officer of Verifone. “We continue to work to drive the next evolution of commerce for our clients by becoming their most trusted partner for terminals, Payment-as-a-Service and commerce enablement solutions. And, we are working with our clients to protect their brands and reputations from the growing threat of data breaches.”

Additional Financial and Business Highlights

  • Upgraded 15 top U.S. retailers to MX 900 EMV-capable platform; added 17 new end-to-end encryption clients
  • Launched the portable VX 690, the first of several new EMV-capable devices with a new consumer design methodology
  • Continued to strengthen partnership and business with Spain’s largest processor
  • Service businesses achieved non-GAAP net revenues of $176 million
  • Expanded Payment-as-a-Service offering to Turkey and signed agreement with the top regional airline
  • Grew LiftRetail in-store marketing network to 1,600 convenience store countertops
  • Increased at-the-pump marketing network to nearly 4,800 gas pumps across the U.S.
  • Extended digital taxi tops to the Las Vegas market and launched pilot program in London

Transformation Initiatives

In April and June of 2014, Verifone approved restructuring plans in order to support its transformation initiatives. In connection with these restructuring plans, the company will reduce headcount by approximately 500 by calendar year end 2014. Verifone expects to reinvest a substantial portion of the savings from these actions to improve its operational infrastructure and invest in its strategic growth initiatives.


Guidance for the third fiscal quarter of 2014 is as follows:

  • Non-GAAP net revenues of $455 million to $460 million
  • Non-GAAP net income per diluted share of $0.33 to $0.34

Guidance for the full fiscal year 2014 is as follows:

  • Non-GAAP net revenues of $1,825 million to $1,835 million
  • Non-GAAP net income per diluted share of $1.42 to $1.44

Conference Call

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 To listen to the call over the phone, dial (866) 953-6860 within the U.S., or (617) 399-3484 outside the U.S., and use conference passcode 1816 8864. The recorded audio webcast will be available on Verifone's website until June 12, 2014.


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, and whether the expected benefits of our plan and initiatives are achieved, 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 against fraud and/or cyber attacks on our computer systems and networks, our assumptions, judgments and estimates regarding the impact on our business of the continued uncertainty in the global economic environment and financial markets, the status of our relationship 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 Systems, Inc. (

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.

Additional Resources:

Download the complete earnings release