First Quarter Financial Highlights
- GAAP net revenues of $486 million
- Non-GAAP net revenues of $487 million
- GAAP net income per diluted share of $0.12
- Non-GAAP net income per diluted share of $0.44
- Operating cash flow of $41 million
VeriFone Systems, Inc. (NYSE: PAY), the global leader in secure electronic payment solutions, today announced financial results for the three months ended January 31, 2015. GAAP net revenues for the quarter were $486 million, compared to $436 million a year ago, an 11% increase. Non-GAAP net revenues were $487 million, compared to $437 million a year ago, an 11% increase. GAAP net income per diluted share for the quarter was $0.12, compared to a net loss of $0.15 a year ago. Non-GAAP net income per diluted share was $0.44, compared to $0.31 a year ago, a 42% increase.
"I’m pleased with our performance in Q1, and the team’s accomplishments. We again exceeded our financial guidance despite foreign exchange and macro-economic related headwinds," said Paul Galant, Chief Executive Officer of Verifone. "We are successfully executing on our transformation, better serving our clients, and capitalizing on opportunities in key markets. At the same time, we are investing in delivering important new products for our clients, and in the future growth of our Terminals Solutions, Payment-as-a-Service and Commerce Enablement businesses."
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
Additional Financial and Business Highlights
- Achieved record North America net revenues driven by security and EMV migration
- Secured 20 large U.S. retail client wins for EMV-capable devices including eight competitive takeaways and seven new hospitality wins
- Announced new mPOS terminal offering and executed a small tuck-in acquisition of a Cloud POS solution for the SMB market
- Began the roll out of next generation in-store site management and POS systems for petroleum vertical
- Made initial deliveries on 3G countertop terminal solutions deal with a major financial institution in Mexico
- Continued Payment-as-a-Service expansion in U.S., U.K., Turkey, and Australia
- Expanded network of taxis with Verifone payment systems in Florida, Canada, and Ireland
Our updated guidance reflects the impact of a more unfavorable foreign exchange environment and a more challenged Russia market since the last time we provided our outlook on December 15th. These factors are partially offset by continued strength in certain geographies, primarily North America.
Second fiscal quarter of 2015:
- Non-GAAP net revenues of $485 million to $489 million
- Non-GAAP net income per diluted share of $0.41 to $0.42
Full fiscal year 2015:
- Non-GAAP net revenues of $1,990 million to $2,000 million
- Non-GAAP net income per diluted share of $1.78 to $1.82
Verifone will hold its earnings conference call today, March 10th, 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 March 17, 2015.
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 and service providers upon whom we rely in the conduct of our business, the impact of foreign currency exchange rate fluctuations on our business and results and 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.
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
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