Third Quarter Financial Highlights
- GAAP and Non-GAAP net revenues of $476 million
- GAAP net loss per diluted share of $0.26
- Non-GAAP net income per diluted share of $0.40
- Operating cash flow of $59 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, 2014 (“Q3 FY14”). GAAP net revenues were $476 million, compared to $416 million a year ago, a 14% increase. Non-GAAP net revenues for Q3 FY14 were $476 million, compared to $418 million a year ago, a 14% increase. GAAP net loss per diluted share was $0.26, compared to a net loss of $0.02 a year ago. Non-GAAP net income per diluted share was $0.40, compared to $0.24 a year ago, a 67% increase.
The table below provides additional summary GAAP and non-GAAP financial information and comparisons.
(1) Reconciliations for the non-GAAP measures are provided at the end of this press release.
(2) "nm" means not meaningful
“I’m pleased with our financial results and progress on our business initiatives,” said Paul Galant, Chief Executive Officer of Verifone. “We have now grown revenue and earnings sequentially for the last four quarters. At the same time, we have been architecting Verifone’s next chapter strategy, which will link our millions of powerful terminals and digital media screens into a commerce enablement network that helps our merchant clients acquire new consumers and increase sales with targeted offers, loyalty incentives, instant reward redemptions and other services. We are very excited about these opportunities.”
Additional Financial and Business Highlights
- Launched partnership with Gilbarco Veeder-Root to offer next generation EMV-capable forecourt payment solutions and the largest at-pump interactive digital media network worldwide
- Upgraded 14 top U.S. retailers to MX 900 EMV-capable platform, including an order for 40,000 MX 900 terminals from one of the largest retailers in the world
- Added 10 new VeriShield Protect end-to-end encryption clients
- Partnered with Germany’s second largest drugstore chain to deliver thousands of terminals over the next three years
- Expanded terminal business in China with winning a tender to provide more than 75,000 countertop, PIN pad and mobile devices to the world’s largest bank
- Extended Payment-as-a-Service portfolio in Turkey with signing of a large home décor retailer
- Continued Payment-as-a-Service momentum in the U.S.
- Announced plans to expand taxi and media services to Istanbul and throughout Mexico’s Mayan Riviera
- Refinanced existing debt which extends maturities, lowers interest rates, and provides more financial liquidity
Guidance for the fourth fiscal quarter of 2014 is as follows:
- Non-GAAP net revenues of $478 million to $483 million
- Non-GAAP net income per diluted share of $0.39 to $0.40
Guidance for the full fiscal year 2014 has been raised to the following:
- Non-GAAP net revenues of $1,858 million to $1,863 million
- Non-GAAP net income per diluted share of $1.46 to $1.47
Verifone will hold its earnings conference call today at 8:30 am (ET). 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 (866) 202-3048 within the U.S., or (617) 213-8843 outside the U.S., and use conference passcode 5046 4998. The recorded audio webcast will be available on Verifone's website until September 12, 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 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.
Download the complete earnings release