Global | Change

Verifone Reports Results for the Third Quarter of Fiscal 2016 and Updates Outlook for Full Year

September 01, 2016 SAN JOSE, CA

SAN JOSE, Calif. – (BUSINESS WIRE) – Verifone (NYSE: PAY), a world leader in payments and commerce solutions, today announced financial results for the three months ended July 31, 2016.  

Third Quarter Financial Highlights

  • GAAP net revenues of  $488 million and Non-GAAP net revenues of $493 million 
  • GAAP net loss per diluted share of $0.28
  • Non-GAAP net income per diluted share of $0.42
  • Operating cash flow of $13 million

"We made real progress during the third quarter in further repositioning Verifone, building our services business and bringing our new devices to market. Despite this progress, Q3 was a challenging quarter for Verifone on revenues.  We moved decisively to reduce our cost structure, and those initial efforts helped us exceed our revised EPS target,” said Paul Galant, Chief Executive Officer of Verifone.  "We are managing through what we believe are difficult but temporary local market and lingering EMV adoption issues. Our outlook for Q4 now assumes a significantly slower EMV rollout, and we are projecting fiscal year 2017 consolidated revenues to be approximately 3% below fiscal year 2016 levels. That said, we are relentlessly executing the long-term vision for Verifone to transform from a box shipper to a services provider.” 

(UNAUDITED, IN MILLIONS, EXCEPT PER SHARE AND PERCENTAGES)

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(1) Reconciliations for the Non-GAAP measures are provided at the end of this press release. 

Fourth Quarter and Fiscal Year 2016 Outlook

Guidance for the fourth fiscal quarter of 2016 is as follows:

  • Non-GAAP net revenues of $460 million
  • Non-GAAP net income per diluted share of $0.28-0.29

Guidance for the full fiscal year 2016 is as follows:

  • Non-GAAP net revenues of $2.0 billion
  • Non-GAAP net income per diluted share of $1.64 - $1.65 

Conference Call

Verifone will hold its earnings conference call today, September 1st, 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 30, 2016. 

About Verifone

Verifone is transforming everyday transactions into opportunities for connected commerce. We’re connecting 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 with approximately 29 million devices and terminals deployed worldwide. 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  

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 pace of EMV adoption in the United States, the conduct of our business and operations internationally, including the complexity of compliance with international laws and regulations and risks related to adverse regulatory actions, including tax-related audits and assessments, 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 integrate the businesses we acquire and to achieve the expected benefits of such acquisitions, our ability to effectively hedge our exposure to foreign currency exchange rate fluctuations, successful execution of our restructuring plans, including whether the expected benefits of restructuring plans are achieved within expected timeframes or at all, 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.

Contacts

Verifone

Investor Relations:
Chris Mammone, 408-232-7230
ir@verifone.com

or

Media Relations:
Andy Payment, 770-754-3541
andy.payment@verifone.com