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VERIFONE EXPECTS THIRD-QUARTER EARNINGS DECLINE FROM YEAR AGO ON INCREASED REVENUES

 REDWOOD CITY, Calif., Oct. 4 /PRNewswire/ -- VeriFone Inc. (NASDAQ: VFIC) today announced that, based on current information, it expects to report earnings per share for the third quarter of 1993, ended Oct. 1, that are approximately five to eight cents lower than the 29 cents reported for the third quarter of 1992. Net revenues for the third quarter are expected to be approximately 20 percent higher than the $58 million reported for the year-ago quarter. VeriFone expects to fully report its third-quarter 1993 results on Oct. 14.
 VeriFone's U.S financial retail revenue increased more than 20 percent over the year-earlier period, while international revenue grew approximately 35 percent. According to company management, despite this strength in the core market, results were mixed due primarily to three factors:
 -- Lower than expected revenues in emerging markets, which grew approximately 15 percent in the aggregate compared with the year-earlier period
 -- Increased competitive pressures in international markets, resulting in lower than historical international gross margins
 -- Shifts in VeriFone's business and product mix, resulting in lower than historical domestic gross margins.
 These factors combined to moderate overall gross margins to the 48- to 50-percent range, compared with 51.3 percent reported a year earlier.
 "Our core business, both domestically and internationally, remains vibrant," said Hatim Tyabji, VeriFone chairman, president and chief executive officer. "However, we are like many other companies in that global economic conditions have made it more difficult than expected to predict profitability and generate demand in emerging markets. Still, we are the leader of the Transaction Automation industry worldwide and solidly profitable. Moreover, we are confident of the company's continued long-term success."
 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, development centers, and manufacturing and distribution centers -- located throughout the United States and in or near Frankfurt; London; Madrid; Milan; Paris; Singapore; Sydney; Taipei and Kaohsiung, Taiwan, R.O.C.; and Bangalore, India. To date, VeriFone has shipped more than 3.1 million Transaction Automation systems, which have been installed in more than 70 countries. The company's 1992 revenues totaled $226.1 million. VeriFone was named one of the 200 best small companies by Forbes in 1991 and 1992 and one of the 100 best companies in California by California Business in 1992 and 1993.
 -0- 10/4/93
 /CONTACT: Thomas W. Hubbs, 415-598-5548, or Tod Bottari, 415-598-5570, both of VeriFone/


CO: VeriFone Inc. ST: California IN: TLS SU: ERN

TM -- SJ012 -- 8624 10/04/93 22:01 EDT
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Publication:PR Newswire
Date:Oct 4, 1993
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