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| Tranz 330 (Photo credit: Laen) |
May 24, 2012 04:01 PM Eastern Daylight Time
VeriFone Reports Results for the Second Quarter of Fiscal 2012
SAN JOSE, Calif.--()--VeriFone Systems, Inc. (NYSE: PAY), the global leader in secure electronic payment solutions, today announced financial results for the three months ended April 30, 2012 (“Q2 FY12”).
“We are very pleased with our performance, particularly the acceleration in organic growth and the increase in Hypercom-brand sales”
Non-GAAP net revenues for Q2 FY12 were $479 million, compared to $425 million in the previous quarter and $293 million for the comparable period of fiscal 2011 (“Q2 FY11”), a 64% year-over-year increase. GAAP net revenues were $472 million for the latest quarter, $420 million for the prior quarter, and $292 million for Q2 FY11.
In Q2 FY12, non-GAAP net revenues excluding revenues from businesses acquired in the past 12 months increased 15% from the year-ago quarter. Hypercom-brand non-GAAP net revenues increased $8 million sequentially to $81 million in Q2 FY12.
Non-GAAP gross margins were 45% for Q2 FY12, compared to 43% in the prior quarter and 43% in Q2 FY11. GAAP gross margins were 41% for the latest quarter, 37% for the prior quarter and 42% for Q2 FY11.
Non-GAAP net income per diluted share for Q2 FY12 was $0.64, compared to $0.58 in the prior quarter and $0.46 for Q2 FY11, a 39% year-over-year increase. GAAP net income per diluted share for the latest quarter was $0.13 income, compared to a $0.03 loss in the prior quarter and $0.27 income in Q2 FY11.
“We are very pleased with our performance, particularly the acceleration in organic growth and the increase in Hypercom-brand sales,” said Douglas G. Bergeron, Chief Executive Officer. “We remain confident in our outlook for the year. VeriFone is continuing to prove that widespread incumbency combined with market-leading innovation is a winning formula for the payments marketplace.”
Highlights Since Last Earnings Release
Today VeriFone and PayPal announced a comprehensive licensing, marketing and implementation agreement intended to pave the way for universal PayPal acceptance at large and mid-size merchants nationwide. A majority of these merchants in the U.S. utilize VeriFone’s software platform and payment systems, which will be adapted so merchants can easily elect the PayPal option. Shoppers will be able to utilize the entire spectrum of PayPal access methods at checkout, including using a PayPal Access card and PIN, entering a phone number and PIN, or even using an NFC mobile phone and PIN in the future. Initially VeriFone will layer PayPal’s “cloud wallet” interfaces and user experience at select merchant locations in the U.S., alongside traditional payment forms, spurring consumer demand for this unique payment experience. Longer term, VeriFone will enable PayPal acceptance natively as part of new services and solution packages sold to its large retail customer base.
On May 8, at the International CTIA WIRELESS 2012 tradeshow, VeriFone introduced SAIL by VeriFone, a streamlined, cost effective payment-as-a-service platform that provides small businesses an easy and secure way to accept payments wherever business takes them. The open and flexible nature of SAIL makes the solution uniquely compatible with mobile devices, such as tablets and smartphones, as well as traditional payment acceptance devices. SAIL enables banks, technology companies and independent sales organizations to build their own payment or marketing solutions, including loyalty and social media, on top of VeriFone’s secure infrastructure. Customers using iOS or Android devices with SAIL will receive a free mobile app and card reader that securely encrypts card data with each transaction. For merchants with higher volumes and multiple locations, SAIL offers integration with traditional VeriFone countertop devices that support emerging standards such as EMV smartcard, NFC contactless, mobile wallet and more. Merchants on SAIL will benefit from dashboards that allow them to analyze their transactions across all of their payment systems – tablets, smartphones and traditional terminals.
On May 8, AT&T and VeriFone announced VeriFone GlobalBay Solutions from AT&T, a co-branded offering that will reduce checkout speed and improve the overall customer experience. Sales associates armed with mobile devices can scan items, apply coupons and discounts and complete credit card transactions from any location in the store. In addition, the tablet-based solutions provide the ability to sell items from inventory not available in the store – helping to prevent lost sales. VeriFone GlobalBay Solutions from AT&T can also change the game in service industries, offering restaurants tableside ordering and payment capabilities, and for hotels, allowing hospitality staff to add purchases to guest room bills.
On March 19, VeriFone announced that U.S. transaction volume through its PAYware Connect gateway has achieved an annual rate exceeding $10 billion, a first for the mobile payments industry. Growth in mobile payments and increasing retailer demand for cloud-based payment services is spurring increased opportunities for VeriFone’s hosted payment solution, which minimizes the complexities of payment acceptance and reduces the scope of PCI compliance. PAYware Connect’s rapid U.S. growth reflects VeriFone’s wide range of offerings to merchants of all sizes. Small merchants are selecting PAYware Mobile solutions for use with smartphones and tablets in their businesses. Larger merchants are selecting PAYware for in-the-aisle checkout and for solutions that are integrated with other retail systems.
Guidance for Third Quarter 2012 and Full Fiscal Year
For the third fiscal quarter ending July 31, 2012, VeriFone expects to report non-GAAP net revenues in the range of $495 million to $500 million. Non-GAAP net income per diluted share is projected to range from $0.68 to $0.70. For the full year of fiscal 2012, VeriFone expects to report non-GAAP net revenues in the range of $1.900 billion to $1.925 billion. Non-GAAP net income per diluted share is expected to range from $2.60 to $2.66 in FY12.
