VeriFone Holdings (NYSE: PAY), the global leader in secure electronic payment solutions, today announced financial results for the three months and fiscal year ended October 31, 2009.
Net revenues for the three months ended October 31, 2009, were $217.8 million, 11% lower than the net revenues of $244.7 million for the comparable period of 2008. Net revenues from VeriFone's International business decreased 14% while net revenues from VeriFone's North America business decreased 6%.
Non-GAAP gross margins were 37.9% for the three months ended October 31, 2009, compared to 34.7% for the comparable period of 2008. GAAP gross margins for the three months ended October 31, 2009 were 34.8%, compared to 30.2% for the three months ended October 31, 2008.
Non-GAAP net income for the three months ended October 31, 2009, was $0.26 per diluted share, compared to $0.19 per diluted share, for the comparable period in 2008.
GAAP net income per share for the three months ended October 31, 2009, was $0.04 per diluted share, compared to GAAP net loss of ($4.35) per diluted share, for the comparable period of fiscal 2008.
Net revenues for the fiscal year ended October 31, 2009, were $844.7 million, 8% lower than the net revenues of $921.9 million for fiscal 2008.
Non-GAAP gross margins were 36.0% for the fiscal year ended October 31, 2009, compared to 35.8% for fiscal 2008. GAAP gross margins for the fiscal year ended October 31, 2009, were 33.4%, compared to 31.8% for fiscal 2008.
Non-GAAP net income for the fiscal year ended October 31, 2009, was $0.85 per diluted share, compared to $0.75 per diluted share for fiscal 2008. GAAP net loss per share for the fiscal year ended October 31, 2009, was $(1.63) per diluted share, compared to $(5.05) per diluted share for fiscal 2008.
"Despite a challenging start, VeriFone completed fiscal 2009 with very good results. In the fourth quarter, non-GAAP net income was up 33% over the prior year and we improved non-GAAP operating margins by 360 basis points. We also generated $75 million of cash from operations in the quarter and increased our cash balances for the year to $325 million, more than double the balance of this time last year," said Douglas G. Bergeron, Chief Executive Officer. "Our strong earnings, tight management of working capital, specifically through the reduction of $72 million of inventory during the year, and net cash tax receipts significantly contributed to our robust generation of cash."
"We continue to see a recovery in all of our international markets and some signs of improvement in the domestic marketplace. As evidenced by recent announcements, we continue to lead our industry through product innovation and first-to-market technology," continued Bergeron.
Guidance - First Quarter and Full Year 2010
For the first quarter ending January 31, 2010, VeriFone expects to record net revenues of between $215 and $218 million. Non-GAAP net income per share is projected to be in the range of $0.22 to $0.23.
For the full year of fiscal 2010, VeriFone expects net revenues to be between $900 million and $915 million. Non-GAAP net income per share is projected to be in the range of $0.97 to $1.07, for the same time period.
Fourth Quarter Highlights
* VeriFone announced PAYware Mobile, a complete payment solution for the Apple iPhone that provides small businesses with simple and secure card processing capabilities on the popular smartphone platform. VeriFone's payment solution for the iPhone (www.paywaremobile.com) puts mainstream payment processing capabilities in the hands of small business merchants who need a mobile card acceptance solution for enterprises such as home repair, small cafes, door-to-door sales, or virtually any other type of business. Transactions processed by PAYware Mobile will be funneled through a VeriFone gateway and then turned over to one of our many processing customers for authorization and settlement.
* VeriFone bolstered its end-to-end encryption leadership position this quarter with Chase Paymentech's announcement of support for VeriShield Protect. In addition, VeriFone announced development of its VeriShield Protect support for both EMV and contactless transactions, making VeriShield Protect the only solution to encrypt all three card data formats with a field preserving end to end encryption scheme. We will start working with beta customers in Europe towards a Spring 2010 release.
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