VeriFone Reports Results for the Third Quarter of VeriFone Reports Results for the Third Quarter of Fiscal 2012
SAN JOSE, Calif.--(BUSINESS WIRE)--Sep. 5, 2012-- VeriFone Systems, Inc. (NYSE: PAY), the global leader in secure electronic payment solutions, today announced financial results for the three months ended July 31, 2012 (“Q3 FY12”).
Non-GAAP net income per diluted share for Q3 FY12 was
.75, compared to
.64 in the prior quarter and
.49 for the three months ended July 31, 2011 (“Q3 FY11”), a 53% year-over-year increase. GAAP net income per diluted share for the latest quarter was
.34, compared to
.03 in the prior quarter and
.28 in Q3 FY11.
Non-GAAP net revenues for Q3 FY12 were $493 million, compared to $479 million in the previous quarter and $317 million for Q3 FY11, a 56% year-over-year increase. GAAP net revenues were $489 million for the latest quarter, $472 million for the prior quarter and $317 million for Q3 FY11.
In Q3 FY12, Organic non-GAAP net revenues, which exclude net revenues from businesses acquired in the past 12 months, increased 16% from the year-ago quarter and 21% at constant currency, which assumes currency exchange rates remained the same from a year ago. North America Organic non-GAAP net revenues grew 9% both unadjusted and at constant currency, while international Organic non-GAAP net revenues grew 21% from the year-ago quarter and 28% at constant currency.
Non-GAAP gross margins were 45% for Q3 FY12, compared to 45% in the prior quarter and 43% in Q3 FY11. GAAP gross margins were 42% for the latest quarter, 41% for the prior quarter and 42% for Q3 FY11.
Net cash provided by operating activities was $82 million in Q3 FY12 as the total cash balance grew by $49 million in the quarter.
“We are very proud of our performance in Q3. Despite continued volatility around exchange rates, our business remains vibrant in all geographies,” said Douglas G. Bergeron, Chief Executive Officer. “In the U.S., growth accelerated as we saw the beginnings of the adoption of EMV-based systems and the first significant payments services deals in the quarter. We are excited about our prospects for 2013 and beyond.”
Highlights Since Last Earnings Release
On August 23, VeriFone announced that it has received orders to date for 80,000 units of its VX 520 payment solution as banks and merchants seek to meet the requirements of the Central bank of Nigeria’s (CBN) “Cash-Less Lagos” initiative. Orders for VeriFone solutions represent more than half of the 150,000 total systems that the central bank expects will be deployed by the end of this year to comply with its mandate. With GPRS capability and extended battery life, the VX 520 is ideal for the country’s telecom infrastructure and is exceptionally durable with broad functionality and low cost of ownership. It features a dual SIM, which allows merchants to switch cellular networks quickly and easily, thereby overcoming issues of erratic network coverage – a frequent challenge for merchants across Nigeria.
On August 15, VeriFone announced that its Point Group has won its largest to date payments-as-a-service (PaaS) contract, with an agreement to supply Finland’s S Group a complete range of payments services in their 1600 locations. Point will provide a comprehensive PaaS offering including software, estate management, maintenance, integration, security and gateway services. The agreement also included new payment systems that account for about 15 percent of the total contract value. Point will provide S Group with a range of stand-alone, portable and unattended payment systems in food market checkout lanes, restaurants, retail gasoline outlets and pumps, and other locations. Deployments will begin this year with the majority of systems being installed in 2013 and completion scheduled for 2014.
On August 9, VeriFone announced that it will provide the merchant payment solutions in the initial phase of the first major contactless payment rollout in Mexico City by the Mexican bank Banamex, which is part of Grupo Financiero Banamex and a member of Citi. The bank will deploy the VX 520 to merchants that use traditional standalone countertop systems and the VX 820 advanced PIN pad to larger retailers that integrate payment systems to electronic cash register systems. In the first phase, several thousand VeriFone contactless-enabled card acceptance systems will be deployed to 1,900 merchants in the Mexico City metropolitan area. By the end of 2012, the bank expects to have deployed 12,000 payment acceptance systems.
Guidance for Fourth Quarter 2012, Fiscal Year 2012 and Fiscal Year 2013
For the fourth fiscal quarter ending October 31, 2012 (“Q4 FY12”), Latin America non-GAAP net revenues, which are reported separately, are expected in the range of $65 million to $75 million, approximately $25 million less than the run rate of recent quarters due to isolated events, and are expected to rebound to $90 million to $95 million in the first quarter of fiscal 2013.
VeriFone expects to report total non-GAAP net revenues for Q4 FY12 in the range of $495 million to $500 million and non-GAAP net income per diluted share in the range of
.75 to
.77. Such numbers imply full fiscal year 2012 non-GAAP net revenues of $1.893 billion to $1.898 billion and non-GAAP net income per diluted share of $2.73 to $2.75.
The company expects FY13 non-GAAP revenue of $2.05 billion to $2.10 billion and non-GAAP net income per diluted share of $3.25 to $3.30.
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