Verifone Gets Contract For Washington, D.C., Taxi Payments System
07/11/2012| 08:53am US/Eastern
By Tess Stynes
VeriFone Systems Inc. (>> VeriFone Systems Inc) was awarded a five-year contract by the District of Columbia Taxicab Commission valued at between $35 million and $45 million to install electronics systems to handle credit-card payments and provide other information.
Shares were up 5% at $33.52 in light premarket trading. Through Tuesday's close, the stock is down roughly 27% in the past year, trailing the broader market.
The company, which has seen double-digit revenue growth for more than two years, is working to expand beyond its existing base of credit-card payment terminals to let customers use smartphones for purchases in stores, taxicabs and other venues.
Under the District of Columbia contract, Verifone will develop, install and support payment systems integrated with driver and passenger information tablet displays for all of the district's 6,500 taxis.
The estimated value of the contract factors in potential advertising revenue. The 10-inch tablet passenger information modules will stream content from VeriFone Digital Network including news, weather, local and national content provided by NBC4 and NBC Universal, a unit of Comcast Corp. (CMCSA, CMCSK).
Verifone said its taxi products are used in more than 50 cities worldwide.
The company in May reported that fiscal second-quarter earnings fell 43% as restructuring and acquisition-related costs continued to overshadow stronger revenue and better-than-expected core profit.
Write to Tess Stynes at Tess.Stynes@dowjones.com