VeriFone bolstered by international sales

VeriFone bolstered by international sales

In its first results statement since going public in April, California e-payments technology firm VeriFone is reporting a sharp rise in profit for its fiscal second quarter, boosted by rising international sales.

VeriFone says net income for the three months ended April 30 2005 rose to $8.8m, compared to $1.1m a year earlier.

Excluding a number of one-time or unusual items, the vendor says it would have earned $12.3m in the quarter, or 22 cents per share, up from $6.2m, or 11 cents per share, for the comparable period of 2004.

Revenue rose 32% to $117.9m from $89.5m a year earlier. VeriFone says the increase was driven by a 68% rise in international sales. Douglas Bergeron, chairman and CEO, VeriFone, says: "In Western Europe, growth continued to be fuelled by enhanced EMV security standards and IP and wireless communications. Emerging markets demand was strong across the board."

Revenues from its North America business increased 16%, while the vendor's recently acquired Go Software business accounted for one per cent of sales.

VeriFone went public at the end of April with shares priced at $10 each.

Yesterday the vendor's stock rose three per cent to close at $13.39 on the Nasdaq but increased a further 9.71% in after hours trading to reach $14.69 following the release of its results.

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