Verifone Provides Second Half Fiscal Year 2008 and Full Year Fiscal 2009 Guidance
VeriFone Holdings Inc. (NYSE: PAY) today announced financial guidance for the fiscal quarter ended July 31, 2008, the fiscal quarter ending October 31, 2008, and the full year ending October 31, 2009. The full results for the fiscal quarter ended July 31, 2008, will be announced on September 9, 2008.
SAN JOSE, Calif. - VeriFone Holdings Inc. (NYSE: PAY) today announced financial guidance for the fiscal quarter ended July 31, 2008, the fiscal quarter ending October 31, 2008, and the full year ending October 31, 2009. The full results for the fiscal quarter ended July 31, 2008, will be announced on September 9, 2008.
Douglas G. Bergeron, CEO of VeriFone, stated: “We expect our third and fourth quarters, beginning in May of this year, to be positive in many respects. Despite a slowdown in the US market, we are seeing excellent growth internationally and in the emerging markets in particular.”
For the third quarter ended July 31, 2008, VeriFone expects to report net revenues of $256 - $258 million, representing revenue growth rates of 10-11% over fiscal 2007. Gross margin percentages are expected to improve as the company has initiated several programs to improve efficiency, reduce product costs and change pricing strategies. Results will continue to be affected by both the restructuring charge and the restatement costs. EBITDA, as adjusted, is expected to be in the range of $28 - $29 million, before adding back approximately $15 million expected to be incurred for restatement costs and restatement-related tax planning and $2 million for restructuring costs. Non-GAAP net income, per share which adjusts for certain non-cash items, valuation allowance adjustments and the effect of restatement related and restructuring charges is projected to be in the range of $0.34 to $0.35.
For the fourth quarter ending October 31, 2008, VeriFone expects to record net revenues of between $260 and $268 million, compared to $238 million in the comparable period of 2007. VeriFone also anticipates continued EBITDA margin expansion. EBITDA, as adjusted, is expected to be in the range of $45 to $48 million, before adding back final restatement costs estimated at $4 million. Non-GAAP net income, per share, is projected to be in the range of $0.36 to $0.39.
Fiscal Year 2009 Outlook
“For fiscal year 2009, we are prudently expecting that weak macro-economic conditions will prevail in North America and Western Europe, though we expect continued favorable conditions in the emerging markets,” said Mr. Bergeron. “We are also working diligently to control growth in operating expenses across the enterprise.”
For the full year ending October 31, 2009, VeriFone expects to achieve net revenue growth of 10 to 15% annual growth, consistent with its long-term growth targets. VeriFone is projecting continued improvements to gross margins as the year progresses as a result of product cost reduction initiatives and improved pricing strategies.
VeriFone is expecting EBITDA, as adjusted, to be in the range of $182 to $206 million; Non-GAAP net income, per share, in the range of $1.35 to $1.55; and cash flow from operating activities in the range of $110 to $125 million.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations or beliefs and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the forward-looking statements herein due to changes in economic, business, competitive, technological and/or regulatory factors, and other risks and uncertainties affecting the operation of the business of VeriFone Holdings, Inc. These risks and uncertainties include: our ability to identify and complete acquisitions and strategic investments and successfully integrate them into our business, our ability to protect against fraud, the status of our relationship with and condition of third parties upon whom we rely in the conduct of our business, our dependence on a limited number of customers, uncertainties related to the conduct of our business internationally, our ability to effectively hedge our exposure to foreign currency exchange rate fluctuations, our dependence on a limited number of key employees, short product cycles, rapidly changing technologies and maintaining competitive leadership position with respect to our payment solution offerings. For a further list and description of such risks and uncertainties, see our filings with the Securities and Exchange Commission, including our annual report on Form 10-K and our quarterly reports on Form 10-Q. VeriFone is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise.
This news content was configured by WebWire editorial staff. Linking is permitted.
News Release Distribution and Press Release Distribution Services Provided by WebWire.