VeriFone Announces First-Quarter 1997 Results: 30 Cents Per Share, Net Revenues of $116.0 Million
Business Wire - April 16, 1997 16:51
FINANCIAL VERIFONE VFI CALIFORNIA COMPUTERS ELECTRONICS COMED EARNINGS V%BW P%BW
------------------------------------------------------------------------
REDWOOD CITY, Calif.--(BUSINESS WIRE)--April 16, 1997--VeriFone, Inc. (NYSE: VFI) today reported its results for the quarter ended March 31, 1997.
-- Net revenues increased 12.7 percent to $116.0 million, compared with $102.9 million in first-quarter 1996.
-- Income from operations grew 16.7 percent to $10.3 million, compared with $8.9 million in the year-ago period.
-- Earnings per share increased 15.4 percent to 30 cents per share on net income of $7.2 million, compared with 26 cents per share on net income of $6.7 million in first-quarter 1996.
"VeriFone again delivered respectable financial results in the first quarter," commented Hatim A. Tyabji, VeriFone's chairman, president and chief executive officer. "Moreover, VeriFone made significant strides in new businesses such as Enterprise Systems and Internet Commerce as we delivered infrastructure solutions, such as Omnihost(R) 3.0 enterprise software and vGATE(TM) Internet gateway software, that are critical to our customers' businesses."
VeriFone continued to expand its breadth of business beyond the traditional merchant countertop. During first-quarter 1997, VeriFone achieved significant milestones in its software, systems and services businesses.
-- VeriFone continued the rollout of its vGATE Internet gateway software, with installations at First USA Paymentech and Royal Bank of Canada;
-- Signed up additional Internet software customers such as BA Merchant Services, Inc. and The Sumitomo Credit Service Co., Ltd., who intend to utilize VeriFone's Internet payment products in SET pilots later this year;
-- Expanded its relationship to offer Internet transaction solutions to Netscape customers who are establishing Internet payment capabilities, providing an easy transition for existing or potential Netscape LivePayment customers to VeriFone's SET-ready products as an alternative payment processing solution;
-- Announced the availability of the Omnihost 3.0 enterprise software solution and successfully installed the software at BA Merchant Services, Inc., which uses Omnihost as an integral part of its credit card and debit card processing system; and
-- Was selected by Citibank to implement its VeriSmart(TM) system and Personal ATM(R) devices as a part of a comprehensive solution in the U.S. for use with smart cards, providing the next generation of automated teller machines and launching smart card banking into the home.
Global Business Review
First-quarter 1997 software revenues were $10.8 million, which represented 9.3 percent of net revenues in the first quarter of 1997, compared with $4.8 million or 4.7 percent in the first quarter of 1996.
Total U.S. revenues increased 13.2 percent to $73.6 million and represented 63.5 percent of net revenues in first-quarter 1997, compared with $65.1 million or 63.2 percent of net revenues in first-quarter 1996.
Total international revenues increased 11.9 percent to $42.4 million and represented 36.5 percent of net revenues, compared with $37.9 million or 36.8 percent of net revenues in first-quarter 1996.
-- Revenues for the Asia-Pacific region increased 24.8 percent to $14.5 million in first-quarter 1997, compared with $11.7 million in first-quarter 1996.
-- Revenues in the Europe, Middle East and Africa region increased 17.8 percent to $17.4 million in first-quarter 1997, compared with $14.8 million in the year-earlier period.
-- Revenues in the Americas region decreased 8.9 percent to $10.4 million in first-quarter 1997, compared with $11.4 million in the year-ago quarter.
Operating Results
-- Sequentially, gross margins increased to 44.7 percent in first-quarter 1997 from 44.0 percent in fourth-quarter 1996, but declined from 47.2 percent in the year-earlier period.
-- Operating expenses decreased as a percent of net revenues to 35.8 percent in first-quarter 1997, compared with 38.6 percent in the year-earlier period.
-- Research and development expenses increased 14.0 percent to $14.3 million or 12.4 percent of net revenues in first-quarter 1997, compared with $12.6 million or 12.2 percent in the year-ago quarter.
-- Selling, general, and administrative expenses were flat from the year-earlier period, but decreased as a percent of net revenues to 23.4 percent in first-quarter 1997, compared with 26.4 percent in the year-ago quarter.
Balance Sheet
-- Cash and short-term investments totaled $60.8 million at March 31, 1997, compared with $47.9 million at December 31, 1996.
-- Days sales outstanding were 107 days at March 31, 1997, compared with 95 days at December 31, 1996.
-- Inventories were $62.3 million at March 31, 1997, compared with $59.5 million at December 31, 1996.
-- VeriFone repurchased 200,000 shares of outstanding common stock in open market transactions during first-quarter 1997. Currently, the company has 23.3 million shares of common stock issued and outstanding.
The Company
VeriFone, Inc. (http://www.verifone.com), the leading global provider of secure payment solutions, delivers electronic payment systems to financial institutions, merchants and consumers, as well as government agencies, healthcare providers and benefits recipients. The Company's more than 35 facilities -- including regional offices, development centers and manufacturing and distribution centers -- are located throughout North and South America, Europe, Asia, Africa, Australia and the Pacific. VeriFone has shipped more than five million systems, which have been installed in 100 countries. The Company's 1996 revenues totaled $472.5 million.
(financial tables to follow)
Safe-Harbor Legend under the Private Securities Litigation Reform Act of 1995: The statements contained in this press release which are "forward looking statements" are based on current expectations, and numerous factors could cause actual results to differ from those indicated. For example, there is no assurance that the Company's entry into new markets, including the Internet commerce and other markets referred to above, will contribute to the Company's profitability -- i.e., that these markets will develop as expected by the Company, that the Company's strategies for these markets will be successful, or that the Company will be able to timely develop and introduce products suitable for these markets. In addition, a substantial portion of the Company's revenues in any quarter generally results from shipments during the latter part of the quarter, and thus, the Company may not learn of shortfalls in revenues, earnings or other financial results relative to the expectations of securities analysts until late in a quarter. The Company's operations are subject to numerous other risks and uncertainties, as described in the Company's SEC filings, including without limitation the section entitled "Factors That May Affect Future Results" and related sections in VeriFone's Form 10-K for the year ended December 31, 1996, copies of which may be obtained by contacting VeriFone's investor relations department at (415) 598-5665. VeriFone undertakes no obligation to update the information contained in this press release.
VeriFone and Omnihost are registered trademarks of VeriFone, Inc. vGATE, VeriSmart and Personal ATM are trademarks of VeriFone, Inc. All other marks are the property of their respective holders.
VeriFone, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Dollars in thousands, except per share data)
Mar.31, 1997 Mar.31, 1996 (Unaudited) (Unaudited)
Net revenues $ 116,013 $ 102,927 Costs and expenses: Cost of revenues 64,199 54,368 Research and development 14,332 12,573 Selling, general and administrative 27,149 27,134 ---------------------------------------------------------------- Total costs and expenses 105,680 94,075 ------------------------------------------------------------ Income from operations 10,333 8,852 Interest income, net (179) 609 ------------------------------------------------------------------ Income before income taxes 10,154 9,461 Provision for income taxes 2,945 2,744 ------------------------------------------------------------------ Net income $ 7,209 $ 6,717 -------- -------- Net income per share $ .30 $ .26 ------------------------------------------------------------------ Common and common equivalent shares used in computing per share amounts 23,868 26,039 -------- --------
CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in thousand) Mar.31, 1997 Dec.31, 1996 (Unaudited) ASSETS Current assets: Cash and short-term investments $ 60,813 $ 47,910 Accounts receivable, net 137,974 131,192 Net investment in sales-type leases 12,633 13,450 Inventories 62,326 59,524 Deferred income taxes 11,957 11,079 Prepaid expenses and other current assets 8,718 9,163 --------------------------------------------------------------- Total current assets 294,421 272,318
Net investment in sales-type leases 19,874 19,329 Property, plant, and equipment, net 66,022 64,722 Other assets, net 47,194 48,611 ----------------------------------------------------------------- $ 427,511 $ 404,980 --------- ---------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities: Accounts payable $ 35,549 $ 31,641 Accrued compensation 11,029 12,612 Other accrued liabilities 23,172 26,790 Income taxes payable 9,879 7,504 Deferred revenue 7,182 9,951 Notes payable and capital leases 65,077 38,581 --------------------------------------------------------------- Total current liabilities 151,888 127,079
Non-current portion of capital leases 266 517 Deferred income taxes 35,916 37,818 Stockholders' equity 239,441 239,566 ----------------------------------------------------------------- $ 427,511 $ 404,980 --------- ---------
The Company has reclassified certain prior-year balances to conform with current-year presentation.
CONTACT: VeriFone
Hilliard C. Terry, III, 415/598-5665
or
Joseph M. Zaelit, 415/696-8833
REPEATS: New York 212-752-9600 or 800-221-2462; Boston 617-236-4266 or
800-225-2030; SF 415-986-4422 or 800-227-0845; LA 310-820-9473
Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.
URL: businesswire.com
<Picture>Headlinesÿ ÿ<Picture>Previous Storyÿ ÿ<Picture>Next Story
------------------------------------------------------------------------
All content is compiled from a variety of sources by News Alert and provided as a service of PC Quote.
See important copyright information. Refresh your screen often for the latest information.
c 1997 News Alert Inc. |
