Global | Change

Verifone Reports Results for the Third Quarter of Fiscal 2015

Revenues and Earnings per Share Exceed Guidance September 03, 2015 SAN JOSE, CA

Third Quarter Financial Highlights

  • GAAP and non­GAAP net revenues of $510 million
  • GAAP net income per diluted share of $0.08
  • Non­GAAP net income per diluted share of $0.47
  • Operating cash flow of $71 million

VeriFone Systems, Inc., the global leader in secure electronic payment solutions, today announced financial results for the three months ended July 31, 2015. GAAP and non­GAAP net revenues for the quarter were $510 million, compared to $476 million a year ago, a 7% increase, and an 18% increase on a constant currency basis. GAAP net income per diluted share for the quarter was $0.08, compared to a net loss of $0.26 a year ago. Non­GAAP net income per diluted share was $0.47, compared to $0.40 a year ago, a 18% increase.

“Q3 was a record quarter for Verifone,” said Paul Galant, Chief Executive Officer of Verifone. “We saw the first half­billion­dollar revenue quarter in the company’s history; grew our non­GAAP earnings per share by 18 percent over last year; and outpaced both market expectations and the industry. In addition, we will begin to launch our next generation solutions at the end of this year. As we continue to make the turn from mostly shipping terminals to delivering fully integrated solutions, our next­generation of connected devices, services, and digital commerce applications will drive unprecedented value for our clients, and long­term growth for Verifone.”

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

Q315 Table1

(1) Reconciliations for the non­GAAP measures are provided at the end of this press release

(2) "nm" means not meaningful

Financial and Business Highlights

  • Achieved record North America net revenues for the third consecutive quarter driven by security needs and EMV migration, and increased demand for Petroleum, Media, and our Payment as a Service offerings
  • Grew share in Europe, with six European markets achieving double­digit revenue gains on a year­over­year constant currency basis
  • Grew Asia Pacific business by 11 percent sequentially; appointed accomplished leaders for the Asia Pacific region; and achieved important NCCA certification for our China subsidiary
  • Improved net revenues in Latin America 8 percent sequentially and launched next­generation global gateway offering in Mexico
  • Expanded footprint of connected devices to build an integrated network for delivering payment services and digital commerce applications, including targeted media, loyalty, and offers
  • Awarded mobile POS business of a top four U.S. wireless carrier to deploy the O/S agnostic e355 in all of its retail stores
  • Signed more than 25 U.S. merchants for Secure Commerce Architecture, expanding EMV compliance and device connectivity
  • Increased media revenues and grew global installed base of our taxi and fuel dispenser consumer­-facing media screens

Guidance

Fourth fiscal quarter of 2015:

  • Non­GAAP net revenues of $510 million to $513 million
  • Non­GAAP net income per diluted share of $0.47 to $0.48

Full fiscal year 2015:

  • Non­GAAP net revenues of $1.997 billion to $2.0 billion
  • Non­GAAP net income per diluted share of $1.82 to $1.83

Conference Call

Verifone will hold its earnings conference call today, September 3rd, at 1:30 pm (PT) / 4.30pm (ET). 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 September 10, 2015.

CAUTION CONCERNING FORWARD­-LOOKING STATEMENTS

This press release includes certain forward­looking 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 forward­looking 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, cyber­attacks 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 10­K and our quarterly reports on Form 10­Q. The forward­looking 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 forward­looking 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 in­store shopping experience and creating the next generation of digital engagement between merchants and consumers. We are built on a 30­year 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