Verifone to cut jobs after posting disappointing Q2 results

Source: Verifone

Verifone (NYSE: PAY), a world leader in payments and commerce solutions, today announced financial results for the three months ended April 30, 2016.

Second Quarter Financial Highlights

  • GAAP net revenues of $526 million and Non-GAAP net revenues of $532 million
  • GAAP net income per diluted share of $0.03
  • Non­-GAAP net income per diluted share of $0.47
  • Operating cash flow of $51 million

“Q2 was a mixed quarter for Verifone as we grew our business, but experienced several difficult market dynamics,” said Paul Galant, Chief Executive Officer of Verifone. “As a result, it is necessary for us to adjust for these risks and update our outlook for FY16 to $2.100 billion dollars of revenue and $1.85 of earnings per share. We are aggressively executing mitigating actions including a headcount restructuring and a review of underperforming businesses. At the same time, we remain committed to executing our strategy in a disciplined manner, and continue to make progress in bringing our next generation devices to market and launching our services platform.”

Third Quarter and Fiscal Year 2016 Outlook

Guidance for the third fiscal quarter of 2016 is as follows:

  • Non­-GAAP net revenues of $515 million
  • Non-­GAAP net income per diluted share of $0.40

Guidance for the full fiscal year 2016 is as follows:

  • Non-­GAAP net revenues of $2.100 billion
  • Non-­GAAP net income per diluted share of $1.85

Restructuring Initiatives

Verifone is currently conducting a disciplined strategic review to address underperforming businesses and reduce overall operating expense levels. In connection with these plans the company intends to reduce headcount and estimates that these activities in total will generate approximately $30 million of savings in 2017. 

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