VeriFone Swings to Profit
September 03 2015 - 5:30PM
Dow Jones News
VeriFone Systems Inc. swung to a third-quarter profit as higher
revenue in North America offset declines in its other segments,
driving the electronic-payments-equipment company into its first
half-billion-dollar revenue quarter.
The San Jose, Calif., company adjusted its projections for the
year that ends in October. It now expects profit of $1.82 to $1.83
a share and revenue between $1.997 billion and $2 billion, compared
with its earlier view of $1.81 to $1.84 a share in profit with
$1.995 billion to $2 billion in revenue.
Analysts surveyed by Thomson Reuters had projected profit of
$1.85 a share with $2 billion in sales.
Shares, down nearly 17% this year, fell nearly 6% to $29.31 in
late trading.
In the most recent period, net revenue in its North America
business, its largest segment, rose nearly 61%. Revenue in its
Europe, Middle East, Africa segment declined 9%, while Latin
America reported a 17% decline and Asia-Pacific was down roughly
18%. The declines were largely tied to currency fluctuations, the
company said.
Last year, VeriFone made 72% of its revenue abroad.
Over all, VeriFone reported a profit of $9.5 million, or eight
cents a share, compared with a year-earlier loss of $29 million, or
26 cents a share. Excluding stock-based compensation and other
items, profit rose to 47 cents from 40 cents a year earlier.
Net revenue rose 7% to $509.9 million. Adjusting for currency
fluctuation, revenue rose 18%.
VeriFone had projected 44 cents to 46 cents and revenue of $495
million to $500 million.
Gross margin improved to 40.5% from 38.4% a year earlier.
Write to Maria Armental at maria.armental@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
September 03, 2015 17:15 ET (21:15 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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