VeriFone Systems Inc (PAY) reported revenues of $420 million in the first quarter of fiscal 2012, up 47.8% year over year and up 2.1% 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.
Excluding amortization of step-down in deferred revenue on acquisition, revenues came in at $425 million, up 50.0% y/y and 2.2% q/q.
On a segment basis, System Solutions generated revenues of $312.6 million, up 38.5% year over year. Services revenues grew 84.1% year over year to $106.8 million.
North America sales were down 6.8% year over year. Sales from international operations grew 96% year over year. Latin American sales recorded a strong quarter with revenues growing 100% on a year-over-year basis, but down 4.1% sequentially. In Europe, the Middle East and Africa, revenues grew 96.8% year over year.
Margins
Gross margin (excluding stock-based compensation and one-time items) came in at 42.9% compared to 39.9% in the prior quarter and 41.2% in the year-ago quarter. Including these items, gross margins came in at 37.3% compared to 30.7% in the previous quarter and 39.3% in the year-ago quarter.
Operating margin came in at 20.5% compared with 17.8% in the previous quarter and 18.6% in the year-ago quarter.
Net loss came in at $3.1 million or ($0.03) per share compared with a net income of $198.8 million or $1.84 per diluted share in the previous quarter and a net income of $32.0 million or $0.35 in the year-ago quarter.
Excluding one-time charges but including stock-based compensation expense, net income was $0.49 per share, beating the Zacks Consensus Estimate by $0.03.
VeriFone exited the quarter with cash and equivalents of $379.9 million, down from $594.6 million at the end of the previous quarter.
Outlook
For the second fiscal quarter, VeriFone expects to report net revenues between $465 million and $470 million. Excluding stock-based compensation, net income per diluted share is projected between $0.59 and $0.60.
For fiscal 2012 (including 10 months of Point revenues), VeriFone expects to report net revenues between $1.90 billion and $1.92 billion. Excluding stock-based compensation, net income per diluted share is projected between $2.60 and $2.66, up from the previous projection of $2.53 and $2.60.
On January 4, 2012, VeriFone ompleted the acquisition of Point, one of Northern Europe’s largest providers of payment and gateway services and solutions for retailers.
Based in Stockholm, Point provides payment and gateway services and solutions for retailers in Northern Europe. Founded in 1988, the company has operations in 11 Northern European countries and currently serves a captive network with over 475,000 merchants. Nordic Capital acquired Point in 2004.
The results did not impress investors as shares gained 0.54% in after-hours trading to close at $46.55.
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