PAY Paymentus Holdings Inc

VeriFone Systems Inc. issued a disappointing outlook for the current quarter Thursday as the payments-technology company's revenue missed expectations for the three months ended July, sending shares lower.

The San Jose, Calif., company's shares, down 28% this year, declined 14% to $17.35 in recent after-hours trading.

For the current quarter, VeriFone projected adjusted per-share earnings of 28 cents to 29 cents and revenue of $460 million. Analysts polled by Thomson Reuters expected per-share profit of 50 cents and revenue of $536 million.

As a result, the company also cut its guidance for the fiscal year ending in October. VeriFone now expects adjusted per-share earnings of $1.64 to $1.65 and revenue of $2 billion, compared with its previous estimate for adjusted per-share profit of $1.85 and revenue of $2.1 billion.

Chief Executive Paul Galant said the outlook for the current quarter assumes a significantly slower rollout of new point-of-sale devices with so-called EMV technology, which accept credit cards with embedded computer chips.

Mr. Galant added that the company made progress toward its goal of transforming itself to a payment- and commerce-services company from a vendor of payment terminals in the latest quarter and that its per-share earnings benefited from recent cost-cutting initiatives.

For the period ended July 31, VeriFone reported a loss of $31.1 million, or 28 cents a share, up from a year-earlier profit of $9.5 million, or 8 cents a share. Excluding restructuring-related charges and other items, adjusted per-share earnings fell to 42 cents from 47 cents.

Revenue decreased 4.3% to $488.1 million as a 12% decline in system sales was partly offset by an 11% increase in services revenue. Excluding certain items, adjusted revenue was $493 million.

The company expected adjusted per-share profit of 40 cents and adjusted revenue of $515 million.

Write to Tess Stynes at tess.stynes@wsj.com

(END) Dow Jones Newswires

September 01, 2016 18:35 ET (22:35 GMT)

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