VeriFone Systems, Inc. (NYSE: PAY), the global leader in secure electronic payment solutions, today announced financial results for the three months ended April 30, 2014 ("Q2 FY14").
GAAP net revenues were $466 million, compared to $426 million a year ago, a 9% increase. Non-GAAP net revenues for Q2 FY14 were $467 million, compared to $430 million a year ago, a 9% increase. GAAP net loss per diluted share was $0.22, compared to a net loss of $0.54 a year ago. Non-GAAP net income per diluted share was $0.37, compared to $0.42 a year ago.
"I'm very pleased with our second quarter financial results, which exceeded our guidance, and the continued progress in our operational initiatives," said Paul Galant, Chief Executive Officer of VeriFone. "We continue to work to drive the next evolution of commerce for our clients by becoming their most trusted partner for terminals, Payment-as-a-Service and commerce enablement solutions. And, we are working with our clients to protect their brands and reputations from the growing threat of data breaches."
Additional Financial and Business Highlights
- Upgraded 15 top U.S. retailers to MX 900 EMV-capable platform; added 17 new end-to-end encryption clients
- Launched the portable VX 690, the first of several new EMV-capable devices with a new consumer design methodology
- Continued to strengthen partnership and business with Spain's largest processor
- Service businesses achieved non-GAAP net revenues of $176 million
- Expanded Payment-as-a-Service offering to Turkey and signed agreement with the top regional airline
- Grew LiftRetail in-store marketing network to 1,600 convenience store countertops
- Increased at-the-pump marketing network to nearly 4,800 gas pumps across the U.S.
- Extended digital taxi tops to the Las Vegas market and launched pilot program in London
- Transformation Initiatives
In April and June of 2014, VeriFone approved restructuring plans in order to support its transformation initiatives. In connection with these restructuring plans, the company will reduce headcount by approximately 500 by calendar year end 2014. VeriFone expects to reinvest a substantial portion of the savings from these actions to improve its operational infrastructure and invest in its strategic growth initiatives.
Guidance for the third fiscal quarter of 2014 is as follows:
Non-GAAP net revenues of $455 million to $460 million
Non-GAAP net income per diluted share of $0.33 to $0.34
Guidance for the full fiscal year 2014 is as follows:
Non-GAAP net revenues of $1,825 million to $1,835 million
Non-GAAP net income per diluted share of $1.42 to $1.44
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