VeriFone Systems Inc (PAY) posted a net income of $14.5 million in the second quarter of fiscal 2012 or $0.13 per diluted share compared with a net loss of $3.1 million or ($0.03) per share in the previous quarter and a net income of $25.2 million or $0.27 per share in the year-ago quarter. Excluding one-time charges but including stock-based compensation expense, net income came in at $0.54 per share, beating the Zacks Consensus Estimate by a penny.
VeriFone reported revenues of $472 million in the second quarter of fiscal 2012, up 61.4% year over year and up 12.5% sequentially.
Based in San Jose, California, VeriFone designs, markets and services a transaction automation system that facilitates electronic payments between consumers, merchants and financial institutions.
VeriFone expects to see strong demand in the third quarter as well. However, concern looms large over the potential impact of a declining euro and other currencies when converted into U.S. dollar. For the third fiscal quarter, VeriFone expects to report net revenues between $495 million and $500 million. Excluding stock-based compensation, net income per diluted share is projected between $0.68 and $0.70. For fiscal 2012 (including 10 months of Point revenues), VeriFone expects to report net revenues between $1.900 billion and $1.925 billion. Excluding stock-based compensation, net income per diluted share is projected between $2.60 and $2.66.
Contributer Thomas Doherty is a student at Villanova University majoring in Finance and Economics. All questions and comments can be sent to Thomas@KeeneOnTheMarket.com
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