NEW YORK (AP) -- Shares of VeriFone Systems Inc. declined in after-hours trading Thursday after the electronic payments company said its net income shrank in its fiscal second quarter on acquisition and restructuring costs and issued a disappointing forecast for the current period.
The company's stock slid $4.15, or 9.2 percent, to $40.85 in electronic trading. The stock had closed down $1.70 at $45 in regular trading.
VeriFone makes electronic systems that retailers use to accept payments from credit and debit cards and mobile phones.
In the fiscal second quarter that ended 30, VeriFone said its profit fell 42.5 percent to $14.5 million, or 13 cents per share, from $25.2 million, or 27 cents per share, a year ago.
Excluding one-time costs for acquisitions and other items, VeriFone said its profit totaled 64 cents per share compared with 46 cents per share a year ago. Revenue climbed 61 percent, to $472 million from $292.4 million.
Analysts were expecting a profit of 61 cents per share on $471 million in revenue, according to FactSet.
In the current quarter, which ends in July, the San Jose, Calif., said it expects to report an adjusted profit of 68 to 70 cents per share and $495 million to $500 million in revenue. On average, analysts were forecasting mostly higher income of 70 cents per share and $501.9 million in revenue.
VeriFone maintained its annual profit and revenue forecasts, saying it expects to earn between $2.60 and $2.66 per share on $1.9 billion to $1.93 billion in revenue. Analysts are calling for $2.66 per share on revenue of $1.92 billion.
Also on Thursday the company announced a licensing and marketing agreement with PayPal. VeriFone said it will modify its software and systems so shoppers at medium-sized and large retailers can use PayPal access cards or their own phone numbers to make purchases.
