VeriFone Systems, Inc. (NYSE: PAY), the global leader in secure electronic payment solutions, today announced financial results for the three months ended October 31, 2013 ("Q4 FY13") and fiscal year ended October 31, 2013 ("FY13").
Fourth Quarter Financial Highlights
- Non-GAAP net revenues of $432 million and GAAP net revenues of $431 million
- Non-GAAP net income per diluted share of $0.27 and GAAP net loss per share of $2.26, including non-cash tax charge of $2.21 per share
- Operating cash flow of $55 million and free cash flow of $38 million
Fiscal Year Financial Highlights
- Non-GAAP net revenues of $1.71 billion and GAAP net revenues of $1.70 billion
- Non-GAAP net income per diluted share of $1.44 and GAAP net loss per share of $2.73, including non-cash tax charge of $2.24 per share
- Operating cash flow of $237 million and free cash flow of $159 million
Revenues - Non-GAAP net revenues for Q4 FY13 were $432 million, compared to $489 million a year ago, a 12% decrease. Non-GAAP net revenues for FY13 were $1.71 billion, a 9% decrease compared to the $1.89 billion result for FY12. GAAP net revenues were $431 million for the latest quarter, compared to $485 million a year ago, an 11% decrease. For FY13, GAAP net revenues totaled $1.70 billion, a 9% decrease compared to the $1.87 billion total for FY12.
Earnings per Share - Non-GAAP net income per diluted share for Q4 FY13 was $0.27, compared to $0.76 a year ago. Non-GAAP net income per diluted share for FY13 was $1.44, compared to the $2.74 result for FY12. GAAP net loss per share for the latest quarter and FY13 was $2.26 and $2.73, respectively. In Q4 FY13, the company recorded a non-cash tax charge of $242M or $2.21 per share to establish a valuation allowance against a significant portion of its deferred tax assets. This accounting treatment reflects the company's assessment of whether these deferred tax assets will be realizable in the future, but has no effect on the company's ability to utilize these deferred tax assets, such as loss carry forwards and tax credits, to reduce future cash tax payments.
"I am pleased with our fourth quarter results, which exceeded our guidance," said Paul Galant, Chief Executive Officer of VeriFone. "We are witnessing the scale convergence of electronic payments, mobility, digital commerce and predictive analytics, and this is an exciting time to lead VeriFone. The company has a global franchise, a growing services business, and a leadership position in enabling commerce for our clients. There is much work to do, and I am confident that the best for VeriFone is yet to come."
Additional Q4 Financial and Business Highlights
- Achieved record non-GAAP services net revenues of $173 million
- Deleveraged balance sheet, paying down $83 million of debt
- Partnered with American Express to enable passengers to use their Membership Rewards points to pay fares in New York City taxicabs
- Continued growth of payment as a service in the U.S., Latin America, Europe, Australia, and New Zealand
- Earned seven U.S. multi-lane retail wins, leveraging the company's MX 900 and VX series products
- Completed rollout of VeriFone's next generation PAYware Mobile products with two Top 100 U.S. retailers.
- Selected to implement Egyptian Ministry of Finance-sponsored mobile payment solutions in petroleum stations across the country
- Won terminal and services contracts with two of India's largest petroleum providers
Guidance for the first fiscal quarter of 2014 is as follows:
- Non-GAAP net revenues of $425 million to $430 million
- Non-GAAP net income per diluted share of $0.26
Guidance for the full fiscal year 2014 is as follows:
- Non-GAAP net revenues of $1.77 billion to $1.80 billion
- Non-GAAP net income per diluted share of $1.35 to $1.40