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Earnings Review and Free Research Report: VeriFone Systems Reported Better Than Expected Revenue

Research Desk Line-up: Herman Miller Post Earnings Coverage

LONDON, UK / ACCESSWIRE / September 27, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on VeriFone Systems, Inc. (NYSE: PAY), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=PAY, following the Company's posting of its financial results on September 07, 2017, for the third quarter fiscal 2017. The Company's Services revenue increased 2.5% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Business Equipment industry. Pro-TD has currently selected Herman Miller, Inc. (NASDAQ: MLHR) for due-diligence and potential coverage as the Company announced on September 20, 2017, its financial results for Q1 FY18 which ended on September 02, 2017. Register for a free membership today, and be among the early birds that get access to our report on Herman Miller when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on PAY; also brushing on MLHR. With the links below you can directly download the report of your stock of interest free of charge at:

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Earnings Reviewed

For three months ended July 31, 2017, VeriFone's total revenue decreased 4.3% to $466.9 million from $488.1 million in Q3 FY16. During Q3 FY17, the Company's Systems revenue decreased 8.9% to 266.0 million from $292.1 million. For the reported quarter, the Company's Services revenue increased 2.5% to $200.9 million from $196.0 million in Q3 FY16. The Company's total revenue surpassed analysts' expectations of $464.23 million.

During Q3 FY17, VeriFone's gross profit decreased 8.7% to $174.5 million from $191.1 million in the same period last year. For the reported quarter, the Company's gross margin decreased 180 basis points to 37.3% of revenue from 39.1% of revenue in Q3 FY16. During Q3 FY17, VeriFone's adjusted gross profit decreased 8.6% to $190.0 million from $208.0 million in the same period last year. For the reported quarter, the Company's adjusted gross margin decreased 200 basis points to 40.6% of revenue from 42.6% of revenue in Q3 FY16.

For the reported quarter, VeriFone's sales and marketing (S&M) expenses decreased 11.6% to $46.7 million from $52.8 million in Q3 FY16. During Q3 FY17, the Company's general and administrative (G&A) expenses decreased 9.7% to $44.9 million from $49.7 million in Q3 FY16. For the reported quarter, VeriFone's research and development (R&D) expenses decreased 3.2% to $50.7 million from $52.4 million in Q3 FY16

During Q3 FY17, VeriFone's operating loss was $50.2 million compared to operating loss of $22.3 million in Q3 FY16. During Q3 FY17, the Company's adjusted operating income decreased 10.1% to $58.3 million from $64.9 million in Q3 FY16.

During Q3 FY17, VeriFone's net loss was $71.0 million compared to net loss of $31.1 million in Q3 FY16. For the reported quarter, the Company's adjusted net income decreased 12.7% to $40.4 million from $46.3 million in Q3 FY16. During Q3 FY17, VeriFone's diluted EPS was negative $0.63 compared to negative diluted EPS of $0.28 in Q3 FY16. For the reported quarter, the Company's adjusted diluted EPS decreased 14.2% to $0.36 from $0.42 in Q3 FY16. The adjusted diluted EPS was in-line with analysts' expectations.

Balance Sheet

As on July 31, 2017, VeriFone's cash and cash equivalents increased 7% to $158.8 million from $148.4 million in Q4 FY16.

During Q3 FY17, the Company's net accounts receivable increased 89 basis points to $326.3 million from $323.4 million in Q4 FY16.

For the reported quarter, VeriFone's inventories decreased 27.2% to $127.5 million from $175.2 million in Q4 FY16.

During Q3 FY17, the Company's accounts payable increased 1.6% to $157.1 million from 154.6 million in Q4 FY16.

For the reported quarter, the Company's long-term debt decreased 5.8% to $809.9 million from $859.9 million in Q4 FY16.

During Q3 FY17, VeriFone's cash provided by operating activities was $60.1 million compared to $140.1 million in Q3 FY16.

During Q3 FY17, the Company's free cash flow decreased 49.8% to $43.8 million from $87.3 million in Q3 FY16.

Outlook

For FY18, VeriFone expects net revenue to be in the range of $1.86 billion to $1.87 billion and adjusted diluted EPS to be in the range of $0.43 to $1.30.

Stock Performance

On Tuesday, September 26, 2017, the stock closed the trading session at $19.94, slightly falling 0.30% from its previous closing price of $20.00. A total volume of 2.06 million shares have exchanged hands, which was higher than the 3-month average volume of 1.46 million shares. VeriFone Systems' stock price surged 12.72% in the last three months, 4.78% in the past six months, and 23.85% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have rallied 12.46%. At Tuesday's closing price, the stock's net capitalization stands at $2.26 billion.

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SOURCE: Pro-Trader Daily