New York, NY (1888PressRelease)
August 21, 2008 - Yesterday VeriFone Holdings Inc. (NYSE: PAY) announced financial guidance for the fiscal quarter ended July 31, 2008, the fiscal quarter ending October 31, 2008, and the full year ending October 31, 2009. The full results for the fiscal quarter ended July 31, 2008, will be announced on September 9, 2008.
For the third quarter ended July 31, 2008, VeriFone expects to report net revenues of $256 - $258 million, representing revenue growth rates of 10-11% over fiscal 2007. Gross margin percentages are expected to improve as the company has initiated several programs to improve efficiency, reduce product costs and change pricing strategies.
VeriFone has had a lot of news for investors lately, most of it bad. The company has had restatements, restructuring charges and the exit of a CFO. With all this bad news behind it though, it may be time to focus on the business prospects of the company. For the full year ending October 31, 2009, VeriFone expects to achieve net revenue growth of 10 to 15%. PAY expects softer market conditions in North America but sees stronger growth in emerging markets. For the quarter ended April 2008 PAY showed strong revenue growth in European and Asian markets. Can emerging markets offset any slowdown in North America? Recent guidance for the remainder of 2008 suggests the answer to this question is yes. With so much bad news behind it, and revenue growth projected for the rest of 2008 it may be time for investors to take a hard look at PAY. Other data companies to look into for comparison purposes would include Teradata (NYSE: TDC) a publicly-traded company that was spun off from NCR Corporation (NYSE:NCR) last fall and Hypercom Corporation (NYSE: HYC).
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