VeriFone Slips To Loss, But Tops Estimates - Update

(RTTNews) - VeriFone Systems Inc. (PAY), the credit card swipe machine maker, Tuesday reported a slip to loss in the fourth quarter, hurt largely due to income tax provision, with lackluster margins and revenues. However, results for the quarter topped Wall Street estimates.

Going forward, VeriFone provided a weak outlook for the current quarter as well as for fiscal 2014. Shares of the company slid 4.4 percent in after-hours trade on the New York Stock Exchange.

VeriFone, based in San Jose, California, posted quarterly net loss of $247.7 million or $2.26 per share, compared with a net profit of $27 million or $0.24 per share last year.

Excluding items, adjusted earnings for the quarter were $0.27 per share, compared with $0.76 per share a year ago. On average, 14 analysts polled by Thomson Reuters expected earnings of $0.26 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter declined 11 percent to $431 million from $485 million in the prior year. Analysts expected revenue of $421.5 for the quarter.

Revenue in Europe, Middle East and Africa fell 11 percent and Latin America and Caribbean slid 11.5 percent. Asia Pacific revenue was down 3.6 percent and North America 14.3 percent.

The company has been battling tough business conditions in Europe and other regions.

Gross margin for the quarter shrunk to 38 percent from 41 percent last year.

Operating expenses increased to $179 million from $148 million a year ago. Income tax provision was $220 million.

For the first quarter, VeriFone expects adjusted earnings of $0.26 per share and adjusted revenue of $425 million to $430 million. Analysts currently expect earnings of $0.32 per share on revenue of $429 million for the quarter.

For fiscal 2014, the company estimates adjusted earnings of $1.35 to $1.40 per share and revenue of $1.77 billion to $1.80 billion. Analysts currently expect earnings of $1.56 per share on revenue of $1.79 billion.

VeriFone stock closed Tuesday at $25.00, up $0.02 or 0.08%, on a volume of 1.8 million shares on the NYSE. In after hours, the stock dropped $1.10 or 4.40%.