Net revenues for the three months ended January 31, 2010, were $223.4 million, compared to $217.8 million of net revenues in the previous quarter, and $214.0 million for the comparable period of 2009.

Non-GAAP gross margins were 39.2% for the three months ended January 31, 2010, compared to 37.9% in the prior quarter, and 35.2% for the comparable period of 2009. GAAP gross margins for the three months ended January 31, 2010, were 36.7%, compared to 34.8% in the prior quarter, and 32.4% for the three months ended January 31, 2009.

Non-GAAP net income per share, for the three months ended January 31, 2010, was $0.26 per diluted share, compared to $0.26 in the prior quarter, and $0.17 per diluted share for the comparable period in 2009.

GAAP net income per share for the three months ended January 31, 2010, was $0.12 per diluted share, compared to a loss of ($0.03) in the prior quarter, and a loss of ($2.16) per diluted share for the comparable period of fiscal 2009.

"I am pleased to report another strong quarter of financial results with excellent growth in both our International and North American segments," said Douglas G. Bergeron, Chief Executive Officer. "We are making good progress with our transformational initiatives as they continue to gain traction and drive more of our business," continued Bergeron. "In addition, we enjoyed a fourth consecutive quarter of excellent cash flow, generating $54 million in cash flow from operations, bringing our cash balances to a record $375 million at the end of the quarter."

First Quarter Highlights

Accelerating its strategic expansion into payment-enabled media, VeriFone announced that it had acquired the Clear Channel Taxi Media business from Clear Channel Outdoor. VeriFone intends to leverage this well-developed channel into VeriFone's Media Solutions payment-enabled business, where in-taxi digital content is positioned to become one of the most innovative advertising venues as spending moves from traditional to online and digital place-based media.

VeriFone announced that it was the co-lead investor in Trunkbow International Holdings Ltd., a Jinan, People's Republic of China-based mobile payments and value-added service applications company. VeriFone invested $5.0 million of the approximately $22.5 million raised, giving VeriFone a pro-forma fully diluted ownership stake of 8.6%. The transaction values the company at a post-money valuation of $65.0 million. Additionally, Trunkbow announced that VeriFone has been named the preferred supplier of payment systems technology to Trunkbow and has awarded VeriFone with an initial order to supply wireless payment solutions.

Guidance - Second Quarter 2010 and Full Year

For the second quarter ending April 30, 2010, VeriFone now expects to report net revenues in the range of $225 million to $230 million. Non-GAAP net income per diluted share is now projected to be in the range of $0.25 to $0.26.

For the full year of fiscal 2010, VeriFone expects net revenues to be in the range of $925 million to $940 million. Non-GAAP net income per share is expected to be in the range of $1.00 to $1.10, for the same time period.