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VeriFone Systems slides to 4th-quarter loss

The Associated Press

NEWS: VeriFone Systems Inc., which makes debit- and credit-card payment machines for retailers and other businesses, says it slid to a loss in its fiscal fourth quarter as sales of its systems fell. The company also issued earnings guidance for the fiscal first quarter and full year below Wall Street expectations, sending shares lower in after-hours trading.

NUMBERS: The company posted a loss of $247.7 million, or $2.26 per share, during the three months that ended Oct. 31. That compares with earnings of $27 million, or 24 cents per share, in the same quarter a year ago.

Adjusted to exclude one-time charges, the company reported earnings of 27 cents per share, coming in a penny above analysts' consensus estimate, according to FactSet. Revenue fell 11 percent to $431.2 million from $485.4 million, but still beat the $421.2 million expected by analysts.

For the full year that ended Oct. 31, the company reported a loss of $296.1 million, or $2.73 per share, compared with earnings of $65 million, or 59 cents per share, in the year before. Revenue fell 9 percent to $1.7 billion from $1.86 billion in the year before. The results matched expectations.

FUTURE: For the fiscal first quarter, the company forecast adjusted earnings of 26 cents per share and revenue between $425 million to $430 million. The net income is below analysts' projection of 32 cents per share, though revenue brackets their $428.5 million estimate.

For the fiscal full year, the company expects adjusted earnings between $1.35 per share and $1.40 per share and revenue between $1.77 billion to $1.80 billion. Analysts expected much higher earnings of $1.59 per share on revenue of $1.78 billion.

STOCK: In after-hours trading, shares of the San Jose, Calif.-based company fell $1.30, or over 5 percent, to $23.70. Its shares closed at $25 Tuesday before the report.