VeriFone Falls on Soft Guidance
NEW YORK (TheStreet) - VeriFone Systems(PAY) shares moved lower in extended trading Monday after the electronic payment technology company reported better-than-expected earnings but gave soft guidance.
VeriFone, which makes point-of-sale machines used by merchants, reported first-quarter earnings of 58 cents a share on $425 million in revenue. Analysts polled by Thomson Reuters were looking for earnings of 52 cents per share on $417.5 million in revenue.
The San Jose, Calif.-based company forecast a profit of 59 to 60 cents per share for its fiscal second quarter ending in April on revenue between $465 million and $470 million. The current consensus view is for earnings of 60 cents per share on revenue of $468.4 million.
"We are delighted with our strong start to fiscal year 2012. We reported record revenues and non-GAAP EPS, the highest non-GAAP operating margin in over five years and continued double-digit organic growth," said Douglas Bergeron, Verifone's CEO, in a statement. "The Point business is performing ahead of plan. Their 'payment-as-a-service' model is positioned to serve as the new North American paradigm for quickly deploying and maintaining advanced EMV software and mobile wallet software updates for Visa, Isis, Google, PayPal and others."
VeriFone shares closed the regular-trading session down 2.35% to $46.58. Shares are lower in after-hours trading, down 1.1% to $47.16 according to Nasdaq.com.
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--Written by Chris Ciaccia in New York
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