Skip to main content
board room
Payments / Earnings

Verifone Reports Q3 Results

Kwiyoung Baumgarten
Director of Public Relations

Verifone (NYSE: PAY), a world leader in payments and commerce solutions, today announced financial results for the three months ended July 31, 2017.

Third Quarter Highlights

  • GAAP and Non-GAAP net revenues of $467 million, with 7% sequential growth in Services
  • GAAP net loss per diluted share of $0.63, reflecting restructuring and divestiture charges
  • Non-GAAP net income per diluted share of $0.36, up 20% sequentially
  • Operating cash flow of $60 million and free cash flow of $44 million
  • Completed divestiture of China operation into minority holding
  • Growing sales pipeline of next generation products across all regions

“In the third quarter, the Verifone team delivered solid financial results, made progress on divesting non-core businesses, and achieved our launch objectives for next generation products.  We continue to grow Verifone’s annuity services business by partnering with our clients to connect more of their device footprint to our payments and commerce services platform," said Paul Galant, Chief Executive Officer of Verifone, “We expect to return Verifone to annual growth in fiscal 2018.”

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

earnings table

(1) "nm" means not meaningful.
(2) Reconciliations for the Non-GAAP measures are provided at the end of this press release.

Fourth Quarter 2017 and Fiscal 2017 Outlook

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

  • GAAP and Non-GAAP net revenues of approximately $470 million to $473 million
  • GAAP net income per diluted share of approximately $0.22
  • Non-GAAP net income per diluted share of $0.43 (reflects a reduction from prior guidance entirely attributable to the Taxi business, which is in the process of being divested)

 

Guidance for the full fiscal year 2017 is as follows:

  • GAAP net revenues of approximately $1.864 billion to $1.867 billion
  • GAAP net loss per diluted share of approximately $1.36
  • Non-GAAP net revenues of approximately $1.867 billion to $1.870 billion
  • Non-GAAP net income per diluted share of $1.30

 

Conference Call

Verifone will hold its earnings conference call today, September 7, 2017, at 4.30 p.m. (ET) / 1:30 p.m. (PT). 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 for the next 30 days.

About Verifone

Verifone is a global leader in payments and commerce solutions, powered by a growing footprint of more than 30 million devices in over 150 countries at the last inch of consumer payments. We are connecting our devices to our integrated solutions platform to better serve the evolving needs of our clients. We are built on a 35-year history of uncompromised security and our people are trusted experts who work with our clients and partners, helping to solve their most complex payments challenges.

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

Additional Resources: http://ir.verifone.com

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, timely product introductions, 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, downturns in the retail sector, 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 deliver new products to the market on time and in sufficient quantities to meet demand, 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 and divestiture 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.

Read Full Release

Contacts

Verifone
Investor Relations:
Chris Mammone, 408-232-7230
ir@verifone.com
or
Media Relations:
Kwiyoung Baumgarten, 770-754-3460
press@verifone.com