Boston, MA 06/06/2014 (wallstreetpr) – VeriFone Systems Inc (NYSE:PAY), which is engaged in the secure electronic payment solutions, provided upbeat revenue outlook for the third quarter and lifted fiscal year 2014 guidance. The company delivered results for the second quarter that came in above the Street analysts’ predictions.
Outlook
The company is looking to generate revenues of $455 – $460 million with adjusted earnings of 33 – 34 cents a share for the third quarter. While revenue forecast is more than the Street analysts’ expectations of $453.83 million, earnings guidance fell shy of estimates by 3 – 4 cents a share.
For the fiscal year 2014, VeriFone Systems Inc (NYSE:PAY) has boosted its adjusted earnings outlook to $1.42 – $1.44 a share from $1.40 a share on revenues of $1.83 – $1.84 billion from $1.78 – $1.81 billion projected earlier. While revenue guidance is more than the analysts’ expectations of $1.80 billion, earnings forecast are in line with the Street estimations of $1.43 a share.
2Q Results
VeriFone Systems Inc (NYSE:PAY) suffered a net loss of $23.9 million or a loss of 22 cents a share, narrower than a net loss of $58.4 million or a loss of 54 cents a share in the year-ago quarter. On non-GAAP basis, earnings slipped to 37 cents a share from 42 cents a share in the year earlier period. Analysts’ predicted VeriFone Systems to earn 33 cents a share.
Revenues, on a non-GAAP basis, grew 9% to $467 million from $430 million, while GAAP revenue was $466 million, up 9% from $426 million in the previous year quarter.
The company’s adjusted gross margin slipped to 41% from 42% in the comparable period of last year.
CEO Speaks
VeriFone Systems Inc (NYSE:PAY) CEO Paul Galant said that its operational initiatives enabled the company to deliver higher than its own guidance during the second quarter. He added that the company will take forward from the current levels to fuel next evolution of commerce for its clients through their trusted partner for terminals.
