Printer Friendly

VERIFONE ANNOUNCES THIRD-QUARTER RESULTS: NET INCOME UP 19 PERCENT ON $58-MILLION REVENUE

 VERIFONE ANNOUNCES THIRD-QUARTER RESULTS:
 NET INCOME UP 19 PERCENT ON $58-MILLION REVENUE
 REDWOOD CITY, Calif., Oct. 22 /PRNewswire/ -- VeriFone Inc. (NASDAQ: VFIC), a leading provider of Transaction Automation system solutions worldwide, today announced a 19-percent increase in net income to $6.8 million for the third quarter ended Oct. 2, 1992. Earnings per share of 29 cents were up 16 percent over the third quarter of 1991, despite a more than 3-percent increase in shares outstanding. Revenue rose 16 percent to $58 million.
 "VeriFone's net income and earnings per share reached new quarterly highs, despite an uncertain economy and a changing industry," said Hatim Tyabji, VeriFone chairman, president, and chief executive officer. "Current growth markets contributed 46 percent of total revenue, with our international business exceeding 23 percent for the second consecutive quarter and growing 53 percent over last year. Our outlook for the future is positive, as we continue to execute our strategy of capitalizing on trends and initiatives in the U.S. financial retail business, while aggressively pursuing new market opportunities on a global scale."
 VeriFone's core business, both domestically and internationally, is merchant payment processing, also known as financial retail. According to Tyabji, the international markets are embryonic and growing rapidly, equivalent to the U.S. market of five to seven years ago. While the U.S. financial retail business is decreasing as a percentage of total revenue, its international counterpart is increasing steadily. The company's products are now installed in approximately 70 countries.
 In the third quarter, VeriFone's international growth was highlighted by dramatic increases in Latin America, including continued strength in Mexico and the Asia-Pacific region. The Europe, Middle East and Africa regions grew modestly despite troubled economic conditions throughout Europe during the quarter. Performance in France and Germany, both relatively new markets for VeriFone, was notably strong.
 U.S. sales were paced by 106-percent growth in the multi-lane retail segment and 80-percent growth in the petroleum/convenience-store segment, year-over-year. The emerging government benefits market also performed strongly, due to shipments of Gemstone Emerald SuperSystems and other products to Electronic Data Systems (EDS) for the Arkansas Medicaid program. Together, these increases more than offset a nearly 6-percent decline in the U.S. financial retail segment, due to continued weakness in the independent sales organization (ISO) distribution channel. U.S. financial retail accounted for 54 percent of the company's total revenue, down from 66 percent in the third quarter of 1991.
 Income from operations (earnings before interest and taxes) o?se 8 percent to $8.4 million, or 14 percent of revenue. Research and development expenses increased 18 percent to $7.3 million, remaining steady at 12 percent of revenue. Selling, general, and administrative expenses grew 11 percent to $14.1 million, or 24 percent of revenue. This was down 1 percentage point from the year-ago quarter, despite revenue growth of 16 percent.
 Due to continued revenue growth internationally, VeriFone decided during the third quarter to expand its investments in engineering, manufacturing and sales outside the United States. As a result, the company reduced its effective tax rate from 31 to 28 percent year-to- date, applying a rate of 23.3 percent for the third quarter. VeriFone will continue to apply the 28-percent effective tax rate in the fourth quarter.
 At Oct. 2, VeriFone's cash balances were $79.6 million, up $6.7 million during the quarter. Accounts receivable increased to $60.7 million, up from $55.9 million at the end of the second quarter. Inventories increased slightly from June levels, but remained nearly $4 million below December levels, indicating continued improvement in turnover year-to-date. The company's book value increased to $163 million, or $6.90 per share, from $6.27 per share at year-end 1991.
 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, healthcare and government markets. The company has more than 30 facilities--including regional offices, research and 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 2.5 million Transaction Automation systems, which have been installed in approximately 70 countries. The company's 1991 revenues totaled $187.9 million. VeriFone has been 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 STATEMENTS OF INCOME
 (Unaudited dollars in thousands except per share data)
 Three Months Ended Nine Months Ended
 Oct. 2, Sept. 27, Oct. 2, Sept. 27,
 1992 1991 1992 1991
 Net revenues $ 58,023 $ 50,013 $163,604 $134,937
 Costs and expenses:
 Cost of revenues 28,269 23,381 79,052 64,621
 Research and
 development 7,280 6,184 20,844 18,007
 Selling, general
 and administrative 14,093 12,701 42,789 35,348
 Total costs
 and expenses 49,642 42,266 142,685 117,976
 Income from
 operations 8,381 7,747 20,919 16,961
 Interest
 income, net 548 890 1,896 2,631
 Income before
 income taxes 8,929 8,637 22,815 19,592
 Provision for
 income taxes 2,084 2,893 6,388 6,563
 Net income $ 6,845 $ 5,744 $ 16,427 $ 13,029
 Net income
 per share $ 0.29 $ 0.25 $ 0.70 $ 0.57
 Common and common
 equivalent shares
 used in computing
 per share amounts 23,597 22,821 23,605 22,793
 CONDENSED CONSOLIDATED BALANCE SHEET
 (Dollars in thousands)
 Oct 2, 1992 Jan 3, 1992
 (Unaudited)
 ASSETS
 Current assets:
 Cash and cash
 equivalents $ 23,292 $ 23,102
 Short-term investments 56,309 50,922
 Accounts receivable, net 60,673 38,743
 Other receivables 3,994 2,771
 Inventories 32,217 36,052
 Prepaid expenses 2,094 1,102
 Total current assets 178,579 152,692
 Property, plant and
 equipment, net 25,672 24,793
 Other assets, net 12,093 11,409
 Total $ 216,344 $ 188,894
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities:
 Notes payable $ 1,074 $ 489
 Accounts payable 14,475 13,240
 Accrued compensation 3,681 5,321
 Other accrued liabilities 6,710 5,895
 Income taxes payable 7,448 1,629
 Deferred revenue 4,998 3,848
 Long-term debt,
 including capital
 lease obligations 906 743
 Total current liabilities 39,292 31,165
 Long-term debt, including
 capital lease obligations
 less current portion 2,243 2,382
 Deferred income taxes 11,906 11,276
 Stockholders' equity 162,903 144,071
 Total $ 216,344 $ 188,894
 -0- 10/22/92 R
 /CONTACT: Thomas W. Hubbs, 415-598-5548, or Tod Bottari, 415-598-5570, both of VeriFone/
 (VFIC) CO: VeriFone Inc. ST: California IN: CPR SU: ERN


KD -- SJ001 -- 4407 10/23/92 18:15 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 23, 1992
Words:1132
Previous Article:CONSUMERS POWER ORDERED TO STOP PROPOSAL C CONTRIBUTIONS
Next Article:MAGNETEK REPORTS FISCAL 1993 FIRST QUARTER RESULTS
Topics:


Related Articles
VERIFONE REPORTS 1991 RESULTS: NET INCOME UP 54 PERCENT
VERIFONE ANNOUNCES SECOND QUARTER RESULTS: EARNINGS UP 30 PERCENT ON $58.7 MILLION REVENUES
VERIFONE ANNOUNCES THIRD-QUARTER RESULTS: NET INCOME UP 19 PERCENT ON $58-MILLION REVENUE
VERIFONE EXPECTS SECOND-QUARTER EARNINGS TO BE COMPARABLE WITH YEAR-AGO EARNINGS
VERIFONE REPORTS THIRD-QUARTER RESULTS; $70.2 MILLION REVENUES, 22 CENTS EARNINGS PER SHARE
VERIFONE ANNOUNCES FOURTH-QUARTER RESULTS: 25 CENTS EARNINGS PER SHARE ON $68.5 MILLION NET REVENUES
VERIFONE ANNOUNCES SECOND-QUARTER RESULTS: 31 CENTS EARNINGS PER SHARE ON NET REVENUES OF $77.7 MILLION
VERIFONE ANNOUNCES THIRD-QUARTER RESULTS: 34 CENTS EARNINGS PER SHARE ON NET REVENUES OF $82.1 MILLION
VERIFONE ANNOUNCES FIRST-QUARTER RESULTS: 22 CENTS EARNINGS PER SHARE ON NET REVENUES OF $77.6 MILLION
VERIFONE REPORTS 40 CENTS EARNINGS PER SHARE, ON NET REVENUES OF $101.5 MILLION, FOR THIRD-QUARTER 1995

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters