VeriFone Cuts Outlook, Announces Plans to Review Business
June 07 2016 - 5:40PM
Dow Jones News
VeriFone Systems Inc. cut its annual guidance after posting
weaker-than-expected results for its latest quarter and announced a
strategic review that will likely lead to job cuts.
The payments-technology company didn't give a time frame for its
review or an estimate for possible head count reductions. But
VeriFone did say that it hopes to achieve about $30 million in
savings in 2017.
"We are aggressively executing mitigating actions including a
head count restructuring and a review of underperforming
businesses," said Paul Galant, chief executive of the company.
Shares of VeriFone slipped about 24% to $21.44 in after-hours
trading.
The San Jose, Calif., company—facing increasing competition in
the payments business—is in the midst of an effort to transform
itself to a payment- and commerce-services company from a vendor of
payment terminals.
VeriFone said it now expects $2.1 billion in revenue for the
year with earnings on a per-share basis of $1.85. In the first
quarter, the company had raised its annual guidance to per-share
earnings between $2.21 and $2.24 on revenue of $2.15 billion to
$2.17 billion.
Analysts surveyed by Thomson Reuters expected per-share earnings
of $2.23 on $2.2 billion in revenue.
For the period ended April 30, VeriFone reported a profit of
$2.9 million, or three cents a share, down from $17.6 million, or
15 cents a share, a year earlier. Excluding certain items,
per-share earnings rose to 47 cents from 44 cents.
Revenue increased 7.3% to $526 million. Excluding certain items,
revenue rose 8.5%.
The company expected per-share profit of 51 cents to 52 cents
and revenue of $530 million. Analysts surveyed by Thomson Reuters
expected profit of 52 cents on revenue of $530 million.
Systems revenue improved 5.6% to $342.5 million, and services
revenue grew 10.9% to $183.8 million.
Revenue in its North America segment increased 8.4% to $209.3
million.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
(END) Dow Jones Newswires
June 07, 2016 17:25 ET (21:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Paymentus (NYSE:PAY)
Historical Stock Chart
From Apr 2024 to May 2024
Paymentus (NYSE:PAY)
Historical Stock Chart
From May 2023 to May 2024