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VERIFONE ANNOUNCES FIRST QUARTER RESULTS: 15 CENTS EARNINGS PER SHARE, $46.9 MILLION IN REVENUE

 VERIFONE ANNOUNCES FIRST QUARTER RESULTS:
 15 CENTS EARNINGS PER SHARE, $46.9 MILLION IN REVENUE
 REDWOOD CITY, Calif., April 23 /PRNewswire/ -- VeriFone Inc. (NASDAQ: VFIC), a leading supplier of Transaction Automation systems and solutions worldwide, today announced earnings per share of 15 cents for the first quarter ended April 3, 1992. This represents a 25-percent increase over the 12 cents per share reported for the same quarter in 1991, despite an increase of nearly 900,000 shares outstanding from a year ago. Net income increased to $3.5 million, up 30 percent over the $2.7 million reported in the year-ago period.
 Revenue for the quarter totaled $46.9 million, a 25-percent increase over the $37.5 million reported in the first quarter of last year.
 "This was a very good quarter for VeriFone," said Hatim Tyabji, president and chief executive officer of VeriFone. "It is particularly gratifying since the first quarter has historically been our slowest period of the year. We believe our strong performance reflects our continuing success in broadening the base of our business across different markets and around the world."
 Within the United States, revenue in the financial segment of the retail market increased 18 percent to $28.2 million and represented 60 percent of the Company's revenue. In the multi-lane retail segment, which consists primarily of supermarkets, sales were $4.0 million, a 29-percent decline from the exceptionally strong first quarter of 1991, when the Company shipped significant volumes of products to major grocery chains. Revenue in the petroleum/ convenience-store market totaled $2.9 million, an 89-percent increase over the first quarter of 1991.
 The emerging government benefits market generated $3.7 million of first-quarter revenue, due in part to the State of Maryland's aggressive implementation of an automated food-stamp delivery program. In another emerging market -- healthcare -- where VeriFone is working with industry partners to provide automated insurance eligibility verification and claims processing systems, the company's first- quarter revenue grew 69 percent over the year-ago period.
 Outside the United States, revenue reached $7.0 million, up 62 percent over the same period last year. This reflected strong sales growth in Latin America, Europe and the Asia-Pacific region.
 First-quarter gross margins improved to 52.4 percent of revenue, up from 51.0 percent a year ago. These improvements stemmed from increased sales of higher-function products in the United States and from continued gains in international sales, which typically yield higher margins.
 Selling, general and administrative (SG&A) expenses increased to 30 percent of revenue in the first quarter, due to continued investments in international growth and in expanded marketing and sales efforts overall. As expected, investments in research and development began to moderate in the quarter, representing 13 percent of revenue, down from 15 percent in the year-ago period.
 The company's cash and short-term investments at the end of the first quarter were $74.5 million, up from $74.0 million at the end of 1991. Inventories declined $1.0 million from December levels. The Company
 VeriFone Inc., based in Redwood City, is a leading global provider of Transaction Automation solutions used to deliver payment processing and other transaction services to the retail, petroleum, healthcare, government, and vending and food-service markets. The company has more than 30 facilities -- including regional offices, development centers, and manufacturing and distribution centers -- located throughout the United States and in or near Frankfurt; London; Madrid; Paris; Singapore; Sydney; Taipei and Kaohsiung, Taiwan, R.O.C.; and Bangalore, India. To date, VeriFone has shipped more than 2.3 million Transaction Automation systems, which have been installed in more than 65 countries. The company's 1991 revenues totaled $187.9 million.
 VeriFone was recently named one of America's 100 fastest-growing companies by Fortune and one of the 200 best small companies by Forbes.
 VERIFONE INC.
 Condensed Consolidated Statement of Income
 (Unaudited, dollars in thousands except per share data)
 Three Months Ended
 Apr. 3, 1992 Mar. 29, 1991
 Net revenues $ 46,880 $ 37,504
 Costs and expenses:
 Cost of revenues 22,303 18,373
 Research and
 development 6,147 5,635
 Selling, general
 and administrative 14,126 10,366
 Total costs
 and expenses 42,576 34,374
 Income from operations 4,304 3,130
 Interest income, net 771 915
 Income before
 income taxes 5,075 4,045
 Provision for
 income taxes 1,573 1,355
 Net income $ 3,502 $ 2,690
 Net income per share $ 0.15 $ 0.12
 Common and common
 equivalent shares
 used in computing
 per share amounts 23,643 22,767
 CONDENSED CONSOLIDATED BALANCE SHEET
 (Dollars in thousand)
 Apr. 3, 1992 Jan. 3, 1992
 (Unaudited)
 ASSETS
 Current assets:
 Cash and cash equivalents $ 15,563 $ 23,102
 Short-term investments 58,918 50,922
 Accounts receivable, net 43,981 41,514
 Inventories 35,092 36,052
 Prepaid expenses 1,867 1,102
 Total current assets 155,421 152,692
 Property, plant and equipment, net 24,407 24,793
 Other assets, net 11,135 11,409
 Total assets $ 190,963 $188,894
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities:
 Notes payable $ 452 $ 489
 Accounts payable 10,846 13,240
 Accrued compensation 3,303 5,321
 Other accrued liabilities 5,478 5,895
 Income taxes payable 2,812 1,629
 Deferred revenue 4,688 3,848
 Long-term debt,
 including capital
 lease obligations 756 743
 Total current liabilities 28,335 31,165
 Long-term debt, capital lease
 obligations less current portion 2,282 2,382
 Deferred income taxes 11,906 11,276
 Stockholders' equity 148,440 144,071
 Total liabilities and
 stockholders' equity $ 190,963 $188,894
 -0- 4/23/92
 /CONTACT: Thomas W. Hubbs, 415-598-5548, or Tod Bottari, 415-598-5570, both of Verifone Inc./
 (VFIC) CO: Verifone Inc. ST: California IN: CPR SU: ERN


MM -- SJ001 -- 1669 04/23/92 09:07 EDT
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Publication:PR Newswire
Date:Apr 23, 1992
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