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VeriFone Holdings Inc. Reports Operating Results (10-Q)

June 11, 2012 | About:

10qk

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VeriFone Holdings Inc. (PAY) filed Quarterly Report for the period ended 2012-04-30.

Verifone Hldgs has a market cap of $3.73 billion; its shares were traded at around $33.88 with a P/E ratio of 18.6 and P/S ratio of 2.9.

Highlight of Business Operations:

System Solutions net revenues for Europe, Middle East and Africa increased $55 million or 68.4% including acquisitions and historical sales to companies noted above and increased $5 million, or 6%, excluding acquisitions, for the three months ended April 30, 2012 compared to the three months ended April 30, 2011. The $5 million increase in net revenues excluding acquisitions was primarily due to a $15 million increase in the Middle East and Africa, primarily Nigeria, United Arab Emirates, and South Africa, due to our efforts to expand in the region and demand for electronic payment solutions as this region moves towards a less cash-dominant economy, offset by a $10 million decrease elsewhere in the region primarily due to the timing of orders from customers.

For the six months ended April 30, 2012 and 2011, International Systems Solutions net revenues for EMEA increased $102 million, or 69.1%, including the acquisitions and historical sales to companies noted above and increased $15 million, or 9.9%, excluding acquisitions. The $15 million increase in net revenue excluding acquisitions was mainly due to a $26 million increase in the Middle East and Africa, primarily Nigeria, United Arab Emirates, and South Africa, due to our efforts to develop markets within the region and growing demand as the region moves towards a less cash-dominant society, offset by an $11 million decrease elsewhere in the region primarily due to the timing of orders from customers.

Corporate operating loss increased $77 million, or 148.9%, for the three months ended April 30, 2012 compared to the three months ended April 30, 2011, primarily due to a $30 million increase in amortization of purchased intangible assets, a $9 million increase in acquisition, integration, and restructuring related expenses, an $18 million patent litigation loss contingency expense, a $7 million increase in amortization of step-down in deferred revenue on acquisition, a $4 million increase in personnel costs primarily due to increased headcount associated with business acquisitions and normal business growth, a $3 million increase in the provision for excess and obsolete inventory and scrap, a $2 million increase in stock-based compensation expense, a $2 million increase in facility expense, a net $2 million increase in inventory standard revaluation and purchase price variances, and a $1 million increase in amortization of the inventory step-up related to business acquisitions. These increases were partially offset by a $1 million decrease in product specific warranty expense.

Corporate operating loss increased $126 million, or 117.9%, for the six months ended April 30, 2012 compared to the six months ended April 30, 2011, primarily due to a $45 million increase in amortization of purchased intangible assets, a $24 million increase in acquisition, integration, and restructuring related expenses, an $18 million patent litigation loss contingency expense, a $13 million increase in amortization of step-down in deferred revenue on acquisition, a $9 million increase in personnel costs primarily due to increased headcount associated with business acquisitions and normal business growth, a $7 million increase in amortization of the inventory step-up related to business acquisitions, a $5 million increase in stock-based compensation expense, a $4 million increase in facility expense, a $4 million increase in the provision for excess and obsolete inventory and scrap, a $1 million increase in inventory standard revaluation and purchase price variances, a $1 million increase in contract manufacturing expense, and a net $1 million increase in freight, duties and other distribution expenses. These increases were partially offset by a $4 million decrease in product specific warranty expense, and a net $4 million decrease in warranty and royalty expenses.

Net cash used in investing activities increased $1,077 million in the six months ended April 30, 2012 compared to the six months ended April 30, 2011 primarily due to our acquisition of Point during December 2011 for a net cash outlay of $999 million ($1,024 million in consideration offset by $25 million in cash acquired), an increase in net cash outlays for other acquisitions of $56 million, investments in revenue generating assets to support our growing Service businesses totaling $13 million, and a $7 million increase in purchases of machinery and computer equipment.

Read the The complete Report

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