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VERIFONE REPORTS 1991 RESULTS: NET INCOME UP 54 PERCENT

 VERIFONE REPORTS 1991 RESULTS: NET INCOME UP 54 PERCENT
 REDWOOD CITY, Calif., Jan. 28 /PRNewswire/ -- VeriFone Inc. (NASDAQ: VFIC), a leading supplier of Transaction Automation systems and solutions worldwide, today reported its results for the quarter and year ended Jan. 3, 1992.
 The company achieved earnings of 25 cents per share in the fourth quarter of 1991, up 56 percent from 16 cents per share a year ago. Net income for the quarter reached $5.7 million, a 59 percent increase over the $3.6 million reported for the fourth quarter of 1990. Revenue for the quarter totaled a record $53.0 million, up 29 percent from $41.2 million in the fourth quarter of 1990.
 "Our record performance in the fourth quarter demonstrates our continuing commitment to deliver cost-effective Transaction Automation solutions to a broad range of customers and markets throughout the world," said Hatim Tyabji, president and chief executive officer of VeriFone. "During the quarter, our international business made its greatest contribution yet to our revenue stream. We're also pleased with the solid performance of the U.S. financial retail segment, the significant growth of the multi-lane retail segment and the emergence of healthcare and government benefits as viable sources of revenue for VeriFone."
 The company's net income for the year rose 54 percent, reaching $18.7 million. Earnings per share increased 49 percent to 82 cents from 55 cents in 1990, and revenue for 1991 totaled $187.9 million, up 21 percent from $155.0 million in 1990.
 Gross margins for the quarter and the year improved over 1990, reaching 52.1 percent of revenue. Operating income for the fourth quarter and the full year reached 12.6 percent of revenue, up from 9.9 percent and 10.2 percent, respectively, in 1990.
 The company's cash and short-term investments at Jan. 3, 1992 were $74.0 million, up from $71.7 million in the third quarter of 1991 and from $61.9 million at Dec. 28, 1990.
 Quarterly sales outside the U.S. reached $10.0 million for the first time. This was an increase of 111 percent over the same period last year and represented a 19 percent contribution to fourth-quarter revenue. For the full year, sales outside the United States were $30.5 million, up 56 percent over 1990. Growth of international business during the quarter and the year was due to major gains in Europe, Asia-Pacific, Africa and Latin America.
 Within the United States, revenue in the financial segment of the retail market increased 18 percent over the fourth quarter of 1990, contributing 62 percent of revenue. For the full year, sales in this segment increased 10 percent, accounting for 65 percent of revenue. In the multi- lane retail segment, sales were up 42 percent, accounting for 9 percent of the company's fourth-quarter revenue. Multi-lane revenue for 1991 more than doubled over 1990. This reflected, in part, the growing acceptance by supermarkets of credit and debit cards.
 The emerging healthcare and government benefits markets generated combined quarterly revenue of more than $1.0 million. This represented a five-fold increase over fourth-quarter 1990 revenue. For the full year, revenue more than tripled over 1990, reaching $3.6 million.
 The effective tax rate for the quarter was 24.5 percent, compared to 25 percent in the 1990 quarter. The full-year rate for 1991 was 31 percent, down from 33.5 percent in 1990. 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 25 facilities -- including regional offices, development centers, and manufacturing and distribution centers -- located throughout the United States and in Frankfurt; London; Madrid; Paris; Singapore; Sydney; Taipei and Kaohsiung, Taiwan, R.O.C.; and Bangalore, India. To date, VeriFone has shipped more than two million Transaction Automation systems, which have been installed in more than 65 countries. 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
 (Dollars in thousands except per share data)
 Three Months Ended Year Ended
 Jan. 3, 1992 Dec. 28, 1990 Jan. 3, 1992 Dec. 28, 1990
 (Unaudited) (Unaudited)
 Net revenues $ 52,979 $ 41,159 $187,916 $155,009
 Costs and expenses:
 Cost of
 revenues 25,377 20,039 89,998 76,384
 Research and
 development 7,118 4,481 25,125 16,836
 Selling,
 general and
 admin. 13,810 12,574 49,158 46,044
 Total costs
 and
 expenses 46,305 37,094 164,281 139,264
 Income from
 operations 6,674 4,065 23,635 15,745
 Interest income,
 net 872 724 3,503 2,540
 Income before
 income taxes 7,546 4,789 27,138 18,285
 Provision for
 income taxes 1,849 1,199 8,412 6,125
 Net income $ 5,697 $ 3,590 $ 18,726 $ 12,160
 Net income
 per share $ 0.25 $ 0.16 $ 0.82 $ 0.55
 Common and common
 equivalent
 shares used in
 computing per
 share amounts 22,980 22,550 22,840 22,229
 CONDENSED CONSOLIDATED BALANCE SHEET
 (Dollars in thousands)
 Jan. 3, 1992 Dec 28, 1990
 ASSETS
 Current assets:
 Cash and cash equivalents $ 23,102 $ 27,074
 Short-term investments 50,922 34,781
 Accounts receivable, net 41,514 34,398
 Inventories 36,052 26,941
 Prepaid expenses 1,102 908
 Total current assets 152,692 124,102
 Property, plant and equipment, net 24,793 18,359
 Other assets, net 11,409 8,495
 Total Assets $ 188,894 $ 150,956
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities:
 Notes payable $ 489 $ 0
 Accounts payable 13,240 9,623
 Accrued compensation 5,321 3,582

 Other accrued liabilities 5,895 5,242
 Income taxes payable 1,629 1,222
 Deferred revenue 3,848 3,825
 Long-term debt,
 including capital lease obligations 743 454
 Total current liabilities 31,165 23,948
 Long-term debt, capital lease
 obligations less current portion 2,382 1,404
 Deferred income taxes 1,276 6,508
 Stockholders' equity 144,071 119,096
 Total liabilities and
 stockholders' equity $ 188,894 $ 150,956
 -0- 1/28/92
 /CONTACT: Thomas W. Hubbs, 415-598-5548, or Tod Bottari, 415-598-5570, both of VeriFone Inc./
 (VFIC) CO: VeriFone Inc. ST: California IN: TLS SU: ERN


DG -- SJ001 -- 4069 01/28/92 09:05 EST
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