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Verifone Q4, Full 2017 Results

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Kwiyoung Baumgarten
Director of Public Relations
December 12, 2017
Verifone Reports Results for the Fourth Quarter and Full Year Fiscal 2017

  • Provides Growth Outlook for the Full Year Fiscal 2018
  • Completes Divestiture of Taxi Business
  • Authorizes New $100 Million Share Repurchase Program

Verifone (NYSE: PAY), a world leader in payments and commerce solutions, today announced financial results for the three months and fiscal year ended October 31, 2017.

The following financial results for the fourth quarter and full year fiscal 2017 include results from the recently divested Taxi business.

Fiscal Year 2017 Financial Highlights

  • GAAP net revenues of $1.871 billion and Non-GAAP net revenues of $1.874 billion
  • GAAP net loss per diluted share of $1.55
  • Non-GAAP net income per diluted share of $1.31
  • Operating cash flow of $166 million
  • Services comprise 42% of Non-GAAP net revenues

Fourth Quarter 2017 Financial Highlights

  • GAAP and Non-GAAP net revenues of $477 million
  • GAAP net income per diluted share of $0.03
  • Non-GAAP net income per diluted share of $0.44
  • Record services revenue of $208 million
  • First year-over-year and sequential revenue growth in both Systems and Services since mid-2016


“The Verifone team continues to make meaningful progress executing our strategy to transform Verifone from a terminal sales company to a platform services company delivering payment and commerce solutions that help our clients grow sales and reduce operating costs while enabling Verifone to grow our base of recurring services revenue," said Paul Galant, Chief Executive Officer of Verifone, “Our focus now shifts from launching our next generation devices and solutions to scaling them across the globe.”


GAAP Table


Divestiture of Taxi Business / Share Repurchase

On December 11, 2017, Verifone sold its Taxi business for $30 million in cash consideration. In connection with the transaction, Verifone also retained a minority equity interest in the divested business.

Verifone expects to use the net proceeds from the Taxi divestiture, plus available cash, to complete the remaining $50 million authorized under its previously-announced $200 million stock buyback program.  Furthermore, the Company’s Board of Directors has authorized an additional $100 million stock repurchase program, which Verifone intends to execute over the coming 12 to 18 months, subject to market conditions and other factors, delivering to shareholders a meaningful percentage of free cash flow generated by the Company during this period.

Fiscal 2018 and First Quarter 2018 Outlook

“For fiscal 2018, the Company expects non-GAAP net revenues of $1.775 billion to $1.8 billion, which reflects low single digit growth on an adjusted basis excluding the divested China and Taxi businesses from the prior year. This outlook also demonstrates a return to growth in our core North America Retail and Small and Medium Business verticals, and more than offsets approximately $70 million in prior year headwinds within our North American Petro and India businesses. The Company also expects fiscal 2018 non-GAAP net income per diluted share of $1.47 to $1.50, reflecting core revenue growth, higher gross margins based on a greater mix of next generation products, and accretion from share repurchases, offset partially by additional investments in next generation solutions, and changes in our non-GAAP effective tax rate,” said Marc Rothman, Executive Vice President and Chief Financial Officer.

Verifone’s outlook for fiscal year 2018 and first quarter is presented as follows:

Guidance for full fiscal year 2018:

  • GAAP net revenues of approximately $1.788 to $1.813 billion
  • Non-GAAP net revenues of approximately $1.775 to $1.800 billion, adjusted to exclude divested businesses
  • GAAP net income per diluted share of approximately $0.66 to $0.69
  • Non-GAAP net income per diluted share of $1.47 to $1.50


Guidance for first fiscal quarter of 2018:

  • GAAP net revenues of approximately $431 to $433 million
  • Non-GAAP net revenues of approximately $418 to $420 million, adjusted to exclude divested businesses
  • GAAP net income per diluted share of approximately $0.02
  • Non-GAAP net income per diluted share of $0.22 

A reconciliation of adjusted revenues for historical comparative periods is provided in the attached financial tables.

Conference Call

Verifone will hold its earnings conference call today, December 12, 2017, at 1:30 p.m. (PT) / 4:30 p.m. (ET). To listen to the call and view the slides, visit Verifone’s website The recorded audio webcast will be available on Verifone's website until January 12, 2018.

About Verifone

Verifone is transforming every day transactions into new and engaging opportunities for merchants and consumers at the last inch of payments and commerce. Powered by a growing footprint of more than 30 million devices in more than 150 countries, our people are trusted experts working with the world’s best-known retail brands, financial institutions, and payment providers. Verifone is connecting more products to an integrated solutions platform to better meet the evolving needs of our clients and partners. Built on a 35-year history of uncompromised security, we are committed to consistently solving the most complex payment challenges. | (NYSE: PAY) | @verifone.

Additional Resources:


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, timely product introductions, 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.

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Investor Relations:
Chris Mammone, 408-232-7230
Media Relations:
Kwiyoung Baumgarten, 770-754-3460

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