Global | Change

Verifone Reports Results for the Second Quarter of Fiscal 2015

Revenues and Earnings per Share Exceed Guidance June 04, 2015 SAN JOSE, CA

Second Quarter Financial Highlights

  • GAAP and Non-GAAP net revenues of $490 million
  • GAAP net income per diluted share of $0.15
  • Non-GAAP net income per diluted share of $0.44
  • Operating cash flow of $56 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, 2015. GAAP net revenues for the quarter were $490 million, compared to $466 million a year ago, a 5% increase. Non-GAAP net revenues were $490 million, compared to $467 million a year ago, a 5% increase on a reported basis, and a 14% increase on a constant currency basis. GAAP net income per diluted share for the quarter was $0.15, compared to a net loss of $0.22 a year ago. Non-GAAP net income per diluted share was $0.44, compared to $0.37 a year ago, a 19% increase.

“Q2 was an important quarter for Verifone. The team performed extremely well across a number of key areas as we achieved record North America results while also gaining share across several key European markets,” said Paul Galant, Chief Executive Officer of Verifone. “The progress we are making in our Year of Product with more certified solutions and offerings is beginning to yield benefits. Our clients are taking notice and we are earning both their first call and their business.”

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

Q215 Table1

(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 for the 2nd consecutive quarter driven by security and EMV migration, and momentum for mobility solutions
  • Secured 28 large U.S. retail client wins for EMV-capable devices including 13 clients rolling out terminals for the first time
  • Continued to grow U.S. SMB market share through processing partners and the ISO channel, propelled by additional certified products and EMV and NFC demand
  • Increased Petrol revenues more than 60% year-over-year as demand continued for our next-generation site controllers and point of sale (POS) systems
  • Signed a substantial deal with one of the world’s largest convenience store retailers to install LiftRetail in-store marketing solution in more than 4,500 locations
  • Completed certifications for our new VX685 portable terminal in Brazil and secured orders from two large processors
  • Increased market share from a year ago in key European countries, including France, Germany, Spain, Portugal, Italy, and the U.K.
  • Signed 31 U.S. merchants for Secure Commerce Architecture to help remove consumer payment data from their integrated POS
  • Continued rollout of Payment as a Service solutions to large banking clients in Australia and New Zealand

Guidance

Third fiscal quarter of 2015:

  • Non-GAAP net revenues of $495 million to $500 million
  • Non-GAAP net income per diluted share of $0.44 to $0.46

Full fiscal year 2015:

  • Non-GAAP net revenues of $1.995 billion to $2.0 billion
  • Non-GAAP net income per diluted share of $1.81 to $1.84

Conference Call

Verifone will hold its earnings conference call today, June 4th, 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 June 11, 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 and customer preferences, 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.

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