BOSTON (Thomson Financial) - VeriFone Holdings Inc. Wednesday said it
completed an independent investigation into its accounting and financial
controls following the company's Dec. 3, 2007, announcement that it would
restate results and said that its chief financial officer resigned.
The San Jose, Calif.-based provider of secure electronic payment services
also said it will delay filing its annual report for the year ended Oct. 31,
2007 and its quarterly report for the three months ended Jan. 31, 2008, until
the investigation and restatement process are completed.
As a result of the restatements, VeriFone expects previously-reported
inventories will be reduced by about $13.3 million, $23.9 million and $40.6
million as compared to originally reported amounts at Jan. 31, 2007, April 30,
2007, and July 31, 2007.
In addition, the company expects previously-reported operating income will
be decreased because of higher cost of net revenues as compared to originally
reported amounts. VeriFone projects decreases of about $12.5 million, $9.8
million and $14.7 million for the three months periods ended Jan. 31, 2007,
April 30, 2007, and July 31, 2007.
VeriFone said Chief Financial Officer Barry Zwarenstein tendered his
resignation, effective after the completion of the restatement and filing
processes.
VeriFone also said it plans to separate the roles of chairman and chief
executive. Charles Rinehart, who has been an independent director of VeriFone
since May 2006, has been elected to serve as the new non-executive chairman of
the board.
VeriFone said it is currently targeting to file its amended and restated
quarterly reports on or about April 30.
Separately, the company said it estimates fourth-quarter revenue of $238.9
million and fiscal 2007 revenue of $903.9 million. Analysts polled by Thomson
Financial on average forecast fourth-quarter revenue of $237.3 million and 2007
revenue of $903.2 million.
VeriFone also said it cut its total headcount by about 6% worldwide in the
first quarter because of the "extremely challenging" revenue environment.
Shares closed Tuesday at $16.83.
Casey Logan
cl/pc
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