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VeriFone Powers Sky News in London

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VeriFone Systems, Inc. (PAY) recently announced that it has signed a contract with Sky News for broadcasting headline news articles in London’s Black Cabs. This task shall be performed by VeriFone Digital Network’s (VNET) TaxiTV and is expected to be functional from May this year.

The company caters to updating the news content aired at the TaxiTV with around six to eight refreshes during the day, thereby ensuring that customers get access to relevant and fresh news content on their journey and not repetitive broadcasting. Sky News shall be at the passengers’ service from the moment the taximeter starts running, operational through a remote.

Apart from catering to passengers, another benefit this system provides is a platform for advertisers for promotion of products and services. This innovation appears to be a strategic marketing move as passengers while on board shall not be diverted towards other channels. Hence, they would give their undivided attention to whatever is being displayed on the screen, a rare phenomenon in today’s world.

On May 9, 2012, VeriFone received contracts from New Balance and Samsonite for its GlobalBay Mobile Point of Sale (mPOS) solutions platform. The company appears to be quite an attractive one for contract awards at this point of time, and laudable too, considering the ongoing effects of fiscal crisis prevalent in the industry.

SolarWinds, Inc. (SWI) earned a deal from Altoona First Savings Bank, Pennsylvania for supplying its SolarWinds Log & Event Manager (:LEM) solutions to the latter on May 3, 2012. Hence, VeriFone should remain wary of such advances made by its competitors in the industry it pertains to.

The company currently retains a Zacks #3 Rank, which translates into a short-term ‘Hold’ rating. However, we presently maintain our ‘Neutral’ recommendation on the stock.

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