Boston, MA 06/07/2013 (wallstreetpr) – VeriFone Systems Inc (NYSE:PAY) (shares traded down 20.87% to close at $17.37), a provider of secure payment solutions, is experiencing a sharp fall in its stock price ever since it reported a disappointing quarterly results.
For the second quarter ended April 30, 2013, the California-based company announced a net loss of $56.4 million, or $0.54 earnings per share, compared to net income of $3.5 million, or $0.3 per share, for the same quarter in 2012.
The company’s net revenue for the second quarter fell by 10% to $426.29 million, compared to $479 million in the second quarter of last year. The company missed a consensus revenue of $440.29 million, which was estimated by 14 analysts.
Looking forward, VeriFone targets adjusted earnings of approximately $0.20 per diluted share and adjusted net revenues of about $400 million in the third quarter of 2013.
During the quarter, VeriFone Systems also announced the completion of the acquisition of EFTPOS New Zealand, for about $57 million. As well as, the company bagged a tender from Russia’s largest bank Sberbank to supply 450K VX systems for the period of two years.
VeriFone Systems Interim CEO Richard McGinn said the company is aware of the “short-term challenges” which is affecting VeriFone’s financial earnings. However, he believed the company is ready to address those issues. McGinn plans to invest heavily in the company’s products and customers in the next twelve months to “resume growth,” believing that there is great scope for the growth of payment technology as well as VeriFone Systems, he added.
VeriFone Systems’ stock, which has been trading in the 52-week range of $17.08 to $39.00, closed at $17.37 on Thursday.
