Global | Change

Verifone Reports Results for the Fourth Quarter and Full Year Fiscal 2016

Q4 Revenue and EPS Exceeded Guidance December 12, 2016 SAN JOSE, CA

Verifone (NYSE:PAY), a world leader in payments and commerce solutions, today announced financial results for the three months and fiscal year ended October 31, 2016.

Fiscal Year Financial Highlights

  • GAAP net revenues of $1.992 billion and Non-GAAP net revenues of $2.006 billion
  • GAAP net loss per diluted share of $0.08
  • Non-GAAP net income per diluted share of $1.66
  • Operating cash flow of $194 million

Fourth Quarter Financial Highlights

  • GAAP net revenues of $464 million and Non-GAAP net revenues of $468 million
  • GAAP net loss per diluted share of $0.04
  • Non-GAAP net income per diluted share of $0.30
  • Operating cash flow of $67 million

“Our fourth quarter results were better than our outlook on both the top and bottom line. Total revenues were consistent with our expectations of EMV-related demand in the U.S., we reported 16% growth in Services revenues from both acquisitions and organic business, and we saw good growth in EMEA and Latin America as a result of several important competitive wins," said Paul Galant, Chief Executive Officer of Verifone. “There is significant opportunity ahead for our business as we move through the many cash to cashless migrations that are happening across the globe, and I am looking forward to addressing our customers’ evolving needs with our newest device platform as we launch pilots, obtain certifications and begin generating more meaningful sales volumes in 2017.” 

 

 

 

 

 

 

(UNAUDITED, IN MILLIONS, EXCEPT PER SHARE AND PERCENTAGES)

 

Three Months Ended October 31,

Years Ended October 31,

2016

2015

Change (1)

2016

2015

Change (1)

GAAP:

Net revenues

$

464

$

514

(9.7

)%

$

1,992

$

2,000

(0.4

)%

Gross margin as a % of net revenues

38.2

%

42.1

%

(3.9

) pts

39.9

%

41.3

%

(1.4

) pts

Net income (loss) per diluted share

$

(0.04

)

$

0.33

nm

$

(0.08

)

$

0.68

nm

 

Non-GAAP (2):

Net revenues

$

468

$

514

(9.1

)%

$

2,006

$

2,001

0.2

%

Gross margin as a % of net revenues

39.5

%

43.4

%

(3.9

) pts

41.8

%

42.6

%

(0.8

) pts

Net income per diluted share

$

0.30

$

0.49

(38.8

)%

$

1.66

$

1.83

(9.3

)%

 

(1) "nm" means not meaningful.

(2) Reconciliations for the Non-GAAP measures are provided at the end of this press release.

 

Fiscal 2017 and First Quarter 2017 Outlook

Guidance for the full fiscal year 2017 is as follows:

  • GAAP net revenues of approximately $1.895 billion to $1.910 billion
  • Non-GAAP net revenues of approximately $1.900 billion to $1.915 billion
  • GAAP net income per diluted share of approximately $0.37 to $0.41
  • Non-GAAP net income per diluted share of $1.35 to $1.39

Guidance for the first fiscal quarter of 2017 is as follows:

  • GAAP net revenues of approximately $446 million
  • Non-GAAP net revenues of approximately $450 million
  • GAAP net loss per diluted share of approximately $0.08
  • Non-GAAP net income per diluted share of $0.20

Conference Call

Verifone will hold its earnings conference call today, December 12, 2016, at 1:30 p.m. (PT) / 4:30 p.m. (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 12, 2017.

About Verifone

Verifone is transforming everyday transactions into opportunities for connected commerce. We’re connecting payment devices to the cloud, merging the online and in-store shopping experience and creating the next generation of digital engagement between merchants and consumers. We are built on a 30-year history of uncompromised security with approximately 29 million devices and terminals deployed worldwide. 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 best-known retail brands, financial institutions and payment providers.

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

Additional Resources:

http://ir.verifone.com

Download the complete earnings release  

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

This press release includes certain forward-looking 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 forward-looking 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 pace of EMV adoption in the United States, the conduct of our business and operations internationally, including the complexity of compliance with international laws and regulations and risks related to adverse regulatory actions, including tax-related audits and assessments, our ability to protect our computer systems and networks from fraud, cyber-attacks 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 integrate the businesses we acquire and to achieve the expected benefits of such acquisitions, our ability to effectively hedge our exposure to foreign currency exchange rate fluctuations, successful execution of our restructuring plans, including whether the expected benefits of restructuring plans are achieved within expected timeframes or at all, 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 10-K and our quarterly reports on Form 10-Q. The forward-looking 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 forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise.

Contacts:

Verifone

Investor Relations:
Chris Mammone, 408-232-7230
ir@verifone.com

or

Media Relations:
Andy Payment, 770-754-3541
andy.payment@verifone.com