Global | Change

Verifone Reports Results for the Fourth Quarter and Full Year Fiscal 2015

Record Annual Revenue of $2 billion as Q4 Revenue and EPS Exceed Guidance  December 14, 2015 SAN JOSE, CA

SAN JOSE, Calif.­­(BUSINESS WIRE)­­ VeriFone Systems, Inc. (NYSE: PAY), the global leader in secure electronic payment solutions, today announced financial results for the fourth quarter and fiscal year ended October 31, 2015.

“We had a strong quarter closing out an important year for Verifone,” said Paul Galant, Chief Executive Officer of Verifone. “In 2015, we accelerated our revenue growth to 16% on a constant currency basis and improved our profitability. We also generated improved cash flow and completed the first half of our $200 million stock repurchase authorization. Most significantly, we continued to strengthen our foundation and began the rollout of our next generation of products and services. This positions Verifone to delight our clients and deliver greater value for our shareholders in 2016 and beyond.” 

Fourth Quarter Financial Highlights

  • GAAP and Non-GAAP net revenues of $514 million, growth of 5% reported and 15% on a constant currency basis
  • GAAP net income per share of $0.33
  • Non­-GAAP net income per diluted share of $0.49
  • Operating cash flow of $81 million

Fiscal Year Financial Highlights

  • GAAP net revenues of $2.000 billion and Non-GAAP net revenues of $2.001 billion, growth of 7% reported and 16% on a constant currency basis
  • GAAP net income per share of $0.68
  • Non­-GAAP net income per diluted share of $1.83
  • Operating cash flow of $249 million

The table below provides additional summary GAAP and non­GAAP financial information and comparisons.

FY15Q4-720x290

Fiscal 2016 and First Quarter 2016 Outlook

“For fiscal 2016, the company expects non­GAAP net revenues of $2.090 billion to $2.110 billion, which at the mid­point is 5% annual growth or 9% annual growth on a constant currency basis,” said Marc Rothman, Executive Vice President and Chief Financial Officer. “The company also expects fiscal 2016 non­GAAP net income per diluted share of $2.15 to $2.17, representing growth of 18% at the mid­point over fiscal 2015 results, reflecting revenue growth, higher gross margins, and improved operating leverage. This guidance also reflects North America revenue growth of 5% and does not reflect revenue from pending acquisitions. The impact of acquisitions will be included in guidance provided on earnings calls after the acquisitions have closed.” 

Guidance for the full fiscal year 2016 is as follows: 

  • Non­-GAAP net revenues of $2,090 million to $2,110 million 
  • Non­-GAAP net income per diluted share of $2.15 to $2.17 

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

  • Non­-GAAP net revenues of $500 million 
  • Non­-GAAP net income per diluted share of $0.45 

Conference Call

Verifone will hold its earnings conference call today, December 14th, at 1:30 pm (PT) / 4.30pm (ET). To listen to the call and view the slides, visit Verifone’s website http://ir.verifone.com. The recorded audio webcast will be available on Verifone's website until January 14, 2016. 

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

This press release includes certain forward­looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations or beliefs and on currently available competitive, financial and economic data and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the forward­looking statements herein due to changes in economic, business, competitive, technological, and/or regulatory factors, and other risks and uncertainties affecting the operation of the business of VeriFone Systems, Inc., including many factors beyond our control. These risks and uncertainties include, but are not limited to, those associated with: execution of our strategic plan and business and operational initiatives, including whether the expected benefits of our plan and initiatives are achieved within expected timeframes or at all, short product cycles and rapidly changing technologies, our ability to maintain competitive leadership position with respect to our payment solution offerings, our dependence on a limited number of customers, the conduct of our business and operations internationally, our ability to protect our computer systems and networks from fraud, cyber­attacks or security breaches, our assumptions, judgments and estimates regarding the impact on our business of political instability in markets where we conduct business, uncertainty in the global economic environment and financial markets, the status of our relationships with and condition of third parties such as our contract manufacturers, key customers, distributors and key suppliers upon whom we rely in the conduct of our business, our ability to effectively hedge our exposure to foreign currency exchange rate fluctuations, and our dependence on a limited number of key employees. For a further list and description of the risks and uncertainties affecting the operations of our business, see our filings with the Securities and Exchange Commission, including our annual report on Form 10­K and our quarterly reports on Form 10­Q. The forward­looking statements speak only as of the date such statements are made. Verifone is under no obligation to, and expressly disclaims any obligation to, update or alter its forward­looking statements, whether as a result of new information, future events, changes in assumptions or otherwise. 

About Verifone

Verifone is transforming everyday transactions into opportunities for connected commerce. We’re connecting more than 27 million payment devices to the cloud—merging the online and in­store shopping experience and creating the next generation of digital engagement between merchants and consumers. We are built on a 30­year history of uncompromised security. Our people are known as trusted experts that work with our clients and partners, helping to solve their most complex payments challenges. We have clients and partners in more than 150 countries, including the world’s best­known retail brands, financial institutions and payment providers.

Verifone.com | (NYSE: PAY) | @verifone

Additional Resources:

http://ir.verifone.com

Download the complete earnings release