Verifone : Reports Results for the Q2 of FY2017

erifone (NYSE: PAY), a world leader in payments and commerce solutions, today announced financial results for the three months ended April 30, 2017.

Second Quarter Highlights

• GAAP and Non-GAAP net revenues of $474 million, up 4% sequentially
• GAAP net loss per diluted share of $0.80, reflecting restructuring and divestiture charges
• Non-GAAP net income per diluted share of $0.30, up 43% sequentially
• Operating cash flow of $36 million
• Growing sales pipeline in all regions for next generation solutions
• Divesting three non-strategic businesses to reallocate resources and capital to core payments and commerce platform

"The Verifone team delivered second quarter results at the high-end of our revenue forecast and above our earnings guidance. Revenue momentum was driven by double-digit sequential growth in our North America Retail and SMB verticals, and by strong demand for devices in India. We are excited about the level of client enthusiasm globally for our next generation platform-based solutions," said Paul Galant, Chief Executive Officer of Verifone. "We are divesting non-strategic businesses and allocating our resources and capital to ensure the timely delivery of our new products, returning Verifone to growth in 2018."

(UNAUDITED, IN MILLIONS, EXCEPT PER SHARE AND PERCENTAGES)

Guidance Impact from Divestiture Initiatives

To further operational improvement and strategic focus, Verifone has targeted three businesses for financial restructuring / divestiture:

(1) Petro Media: As previously announced during the second quarter, Verifone formed a 50/50 joint venture by combining its Petro Media advertising business with Gas Station TV. As of the disposition date, Petro Media results are no longer consolidated.

(2) China: Verifone intends to divest its China business into a locally-owned and operated company in which Verifone will continue to hold a minority interest. This transaction is expected to be completed during the third quarter. Accordingly, full-year guidance now reflects the deconsolidation of financial expectations attributable to China in the second half of 2017 to reflect this change in ownership structure.

(3) Taxi Solutions: Verifone has completed the previously discussed strategic review of its Taxi transaction and media business and is now actively engaged in a process to divest these operations. Verifone will continue to report operating results for Taxi within its consolidated financials until an actual disposition occurs, which the Company expects in the next several quarters. Accordingly, full-year guidance continues to include expectations related to Taxi.

Fiscal 2017 and Third Quarter 2017 Outlook (Includes Impact of Divestiture Initiatives)

Verifone's financial guidance excludes its stand-alone Petro Media and China businesses, but includes the Taxi operations until disposition.

Guidance for the full fiscal year 2017 is as follows:

• GAAP net revenues of approximately $1.861 billion to $1.866 billion
• GAAP net loss per diluted share of approximately $0.51 to $0.53
• Non-GAAP net revenues of approximately $1.865 billion to $1.870 billion
• Non-GAAP net income per diluted share of $1.32 to $1.34

Guidance for the third fiscal quarter of 2017 is as follows:

• GAAP and Non-GAAP net revenues of approximately $463 million to $465 million
• GAAP net income per diluted share of approximately $0.14 to $0.15
• Non-GAAP net income per diluted share of $0.35 to $0.36

Conference Call

Verifone will hold its earnings conference call today, June 8, 2017, at 4.30 p.m. (ET)/1:30 p.m. (PT). To listen to the call and view the slides, visit Verifone's website http://ir.verifone.com . The recorded audio webcast will be available on Verifone's website for the next 30 days.

About Verifone

Verifone is transforming everyday transactions into opportunities for connected commerce. We're connecting payment devices to the cloud-merging the online and in-store shopping experience and creating the next generation of digital engagement between merchants and consumers. We are built on a 35-year history of uncompromised security with approximately 30 million devices and terminals deployed worldwide. Our people are trusted experts that work with our clients and partners, helping to solve their most complex payments challenges. We have clients and partners in more than 150 countries, including the world's best-known retail brands, financial institutions and payment providers.

Verifone.com | (NYSE: PAY) | @verifone

Additional Resources: http://ir.verifone.com

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations or beliefs and on currently available competitive, financial and economic data and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the forward-looking statements herein due to changes in economic, business, competitive, technological, and/or regulatory factors, and other risks and uncertainties affecting the operation of the business of VeriFone Systems, Inc., including many factors beyond our control. These risks and uncertainties include, but are not limited to, those associated with: execution of our strategic plan and business and operational initiatives, including whether the expected benefits of our plan and initiatives are achieved within expected timeframes or at all, short product cycles and rapidly changing technologies, our ability to maintain competitive leadership position with respect to our payment solution offerings, our dependence on a limited number of customers, downturns in the retail sector, the pace of EMV adoption in the United States, the conduct of our business and operations internationally, including the complexity of compliance with international laws and regulations and risks related to adverse regulatory actions, including tax-related audits and assessments, our ability to deliver new products to the market on time and in sufficient quantities to meet demand, our ability to protect our computer systems and networks from fraud, cyber-attacks or security breaches, our assumptions, judgments and estimates regarding the impact on our business of political instability in markets where we conduct business, uncertainty in the global economic environment and financial markets, the status of our relationships with and condition of third parties such as our contract manufacturers, key customers, distributors and key suppliers upon whom we rely in the conduct of our business, our ability to effectively integrate the businesses we acquire and to achieve the expected benefits of such acquisitions, our ability to effectively hedge our exposure to foreign currency exchange rate fluctuations, successful execution of our restructuring plans, including whether the expected benefits of restructuring and divestiture plans are achieved within expected timeframes or at all, and our dependence on a limited number of key employees. For a further list and description of the risks and uncertainties affecting the operations of our business, see our filings with the Securities and Exchange Commission, including our annual report on Form 10-K and our quarterly reports on Form 10-Q. The forward-looking statements speak only as of the date such statements are made. Verifone is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise.

Read Full Release

Verifone
Investor Relations:
Chris Mammone, 408-232-7230
ir@verifone.com
or
Media Relations:
Andy Payment, 770-754-3541
andy.payment@verifone.com