WASHINGTON: VeriFone Systems Inc. PAY reported fourth-quarter fiscal 2015 adjusted earnings (including stock-based compensation) of 45 cents per share, which easily beat the Zacks Consensus Estimate of 40 cents.
However, the company’s 2016 guidance was weaker than expected and resulted in nearly 3% drop in share price in the aftermarket session. The company reported non-GAAP earnings of 49 cents a share, up from 44 cents reported in the prior-year quarter.
Revenues of $514 million increased 4.8% year over year and also surpassed the Zacks Consensus Estimate of $513 million. Revenues were also better than management’s guided range of $510-$513 million. The year-over-year growth was primarily driven by strong performance of the System Solutions segment.
System Solutions revenues (65.9% of total revenue) increased 9% year over year to $338.9 million. Services revenues (34.1% of total revenue), however, fell 2.4% to $175.2 million. Non GAAP revenues from North America increased 54.3% year over year to $229.9 million. Sales of mobile products and security solutions remained strong in the reported quarter.
Revenues from Latin America declined 23.5% year over year to $62.8 million. Unfavorable economic environment in Brazil was the primary reason. Revenues from EMEA (Europe, Middle East and Africa) declined 13.3% from the year-ago quarter to $164.2 million. However, the company’s business in Western Europe exhibited growth. Asia Pacific revenues plummeted 18.4% year over year to $57.3 million.
