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VeriFone Holdings, Inc. (NYSE:PAY)

Q3 FY08 Earnings Call

September 9, 2008, 4:30 PM ET

Executives

William Nettles - VP of Corporate Development and IR

Douglas G. Bergeron - CEO

Robert Dykes - Sr. VP and CFO Designate

Analysts

Tien-Tsin Huang - JPMorgan

Julio Quinteros - Goldman Sachs

Gil Luria - Wedbush Morgan Securities Inc.

Andrew Jeffrey - SunTrust Robinson Humphrey

Robert Dodd - Morgan Keegan

Operator

Good day, ladies and gentlemen, and welcome to the Q3 2008 VeriFone Holdings Incorporated Earnings Conference Call. My name Antoine and I'll be your operator for today. At this time, all participants are in listen-only mode. We will conduct a question-and-answer session towards the end of this conference. [Operator Instructions]. I'd now like to turn the call over to Mr. William Nettles, Vice President of Corporate Development and Investor Relations. Please proceed, sir.

William Nettles - Vice President of Corporate Development and Investor Relations

Good afternoon and welcome to the VeriFone financial results conference call for the third first quarter of 2008. Today's call is being webcast and a recording will be available on our website until September 16, 2008.

With me today is Doug Bergeron, CEO; our Interim CFO, Clinton Knowles and Bob Dykes who has just joined VeriFone and will take over as CFO following the filing later today of our third quarter report with the SEC.

First for the legalities. I want to remind everyone that VeriFone desires to take advantage of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Certain forward-looking statements in this conference call including management's view as to future events and financial performance are subject to various factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. For a description of these factors, I refer you to our filings with the SEC. Any forward-looking statements speak only as of today and VeriFone is under no obligation to update these statements to reflect future events or circumstances.

In addition, today's call will cover certain non-GAAP financial measures on both historic and forecast basis. Our management uses these measures to evaluate our operating performance and to compare our results with those for prior periods as well as to other peer companies. These non-GAAP measures are not substitutes for disclosures made in accordance with GAAP. Reconciliations of these measures to the most comparable GAAP measures are presented in our earnings release, which is available on our website at verifone.com.

During this presentation, your line will be in a listen-only mode. At the conclusion of today's presentation, there will be a question-and-answer session. Instructions on how to signal for a question will be given by the moderator at that time.

Now I would like to turn the call over to Doug Bergeron, CEO of VeriFone.

Douglas G. Bergeron - Chief Executive Officer

Thank you, William, and good afternoon everyone.

During our last call on August the 19th, I provided some preliminary comments on our anticipated revenues for the third quarter. In the past three weeks, we concluded our revenue recognition review and are now reporting slightly higher revenue.

Our revenues were $259 million and grew 12% in the third quarter with International increasing 26% and North America declining 6%.

Now rather than going over each region's results as we did on the last call, I would like to begin by discussing in more detail some of the promising initiatives that will be among the themes driving our business in 2009 and beyond, namely a deepening penetration of our vertical solutions in emerging markets and secondly, delivering technology that will set a new standard for acceptable security in the developed markets of North America and Europe.

Before looking at VeriFone's emerging market initiatives, let's take a moment to review VeriFone's emerging market footprint, one of our most valuable assets.

In Q3, some 44% of our overall revenue was derived from these emerging markets, which we define as the Asia-Pacific region with the exception of Singapore, Australia and New Zealand, all of Latin America, Eastern Europe, Russia, the Middle East and Africa.

In these markets, VeriFone has built its leading presence largely through the sale of entry level standalone or wireless payment systems, and principally to banks. Beginning this year, our strategy has been to leverage this technical expertise and support infrastructure into sales of higher value-added solutions and services to banks and to industries beyond banking.

Note that in North America, only half of our revenues come from the financial services sector. So we believe this strategy presents great upside for international growth.

Let me now offer you a few examples; In China, we are deploying parking lot fee systems, some based on the use of unattended kiosks and others manned by roving parking lot attendants with Vx670 portable payment systems.

In Panama, VeriFone's fleet card solution was selected by Terpel, a Colombian petroleum company with a presence in several countries in Latin America. Effective monitoring of fuel usage and expenditures are critical to the profits of trucking firms.

Our solution comprised of VeriFone's PAYware fleet software, the Ruby system and the Vx670 helps petroleum companies such as Terpel strengthen customer royalty and control costs.

In Turkey, VeriFone worked with Bank Asya to integrate the MX870 multimedia payment system and our QX110 contactless module with GPRS capabilities, providing a payment solution on motorways and bridges for the citizens of that region.

In Argentina, Metrovias Argentina selected VeriFone's contactless Vx670 solution for integration into its Neefair [ph] public transportation payment system. Part of the solution incorporates payment in restaurant and food concessions inside in adjacent stations. Following its financial deployment in Buenos Aires, Metrovias is planning a rollout in Southern Argentina and Paraguay.

We believe that our success in both the Turkish and Argentinean metro project implementations will serve as models for emerging market public transportation projects which can benefit from our local application engineering presence and our industry leading wireless and contactless technology.

Emerging market non-banking verticals will be an area of focus for us over the next several years. We will continue to devote resources towards development of additional verticals, which will provide opportunities to expand emerging markets' revenues and margins.

In North America and Europe, an important theme for 2009 and beyond will be the leveraging of our industry leading technology investments. For 25 years, these investments have consistently yielded first-to-market solutions with higher gross margins. Enhanced security has driven many of these innovations.

Now a lot has been said over the past few years about PCI compliance. And there is no doubt that VeriFone has benefited from the natural upgrade cycle that this has and continues to provide. We believe that a major theme of our growth through the next decade revolves around VeriFone's expertise in data security. Though PCI compliance is a big step, we believe the next step is to totally rid retail enterprises and retail networks of useable credit card data.

Today, the process of becoming PCI compliant involves introducing new or upgraded point-of-sale systems that are verified to not store or forward unencrypted credit card data and to submit the whole retail enterprise to an audit designed to ensure that any IT infrastructure including servers and routers and other hardware is not inadvertently maintaining unencrypted data.

At the beginning of this year, VeriFone introduced the VeriShield, a patent pending technology that fully encrypts credit card data at the point-of-sale, rendering any card data useless if hacked or stolen from the enterprise. The data remains encrypted until decoded by a retailer's gateway, a processor or via a VeriFone service. The technology behind verifield uses patent pending Hidden Triple DES technology. Hidden Triple DES protects cardholder information in a way that keeps it totally secure, but enables the information to pass seamlessly to existing retail systems without requiring software changes in the vast majority of cases.

Reaction from the market has been very positive, particularly from the grocery and mass merchandise segments. These markets understand the importance of protecting their customers and their brands from credit and debit breaches. We are working with several retailers in various stages of installation and testing. One of early adopters has been Family Dollar Stores. We've also made progress with several acquirers including notably Heartland Payment Systems.

Now with those strategic initiatives as background, I want to turn back to a discussion of our third quarter results.

Non-GAAP gross margin showed a sequential improvement to 37.6% as compared to 35% in the second quarter. In certain markets, we were able to recover higher freight and plastic costs through modifications to our pricing strategies. We also benefited from some favorable international product mix in Asia and increased management focus and control of our European supply chain expenses.

Approximately 1% of our improvement, which we do not expect to repeat next quarter, was due to lower than usual corporate costs, primarily in the area of manufacturing, variances and excess and obsolescence.

Now at various times in VeriFone's history, we have made important strides in the area of gross margin expansion. I would like to take a few moments now to provide a historical perspective on our gross margin expansion initiatives and a current look at the shift in our approach to these strategies, particularly as it relates to engineering cost redesigns.

In 2005 and 2006, three principal factors provided an environment which enabled us to expand gross margins.

First was a major product transition from our low-end and medium range landline products from the Omni platform to the lower cost Vx platform. These cost reductions allowed us to participate more fully in emerging market opportunities at lower price points while maintaining our corporate margins.

Second, our international sales transitioned from landline to wireless solutions and we benefited from the higher margins of these more complex solutions.

Third, because our major competitors had only mixed success in bringing products to market, we were able to lead and extend our lead in features over a broad spectrum of our product portfolio and improve gross margins.

Our gross margin improvement strategies of early 2008 have been reoriented towards engineering cost redesigns across all of our major product platforms. Our target for this initiative is a 300 basis point improvement in gross margins by the fourth quarter of 2009. This opportunity is available to us due to resource allocation decisions in recent years which were weighted highly towards new product introductions rather than cost reduction projects. These cost reduction efforts, which are supplemental to ongoing reductions in overall supply chain costs, include the reduction in a number of components, qualification of multiple sources of supply and in the case of high volume wireless products, a major redesign which reduces the number of boards.

Of the 14 products... projects on our list, four were released in our second and third quarter and we will see a financial benefit on margins this quarter of 50 basis points. We are projecting to capture more then half of our targeted 300 basis point favorable financial impact by the second quarter of 2009.

Engineering had a very productive quarter. In addition to the cost reduction activities I previously discussed, the Secure Pay Pump product was released.

Now, I would like to turn the call over to Bob Dykes who will discuss our non-GAAP net income measures and provide guidance.

Robert Dykes - Senior Vice President and Chief Financial Officer Designate

Thanks Doug. Since joining VeriFone last week, I have looked with interest at the non-GAAP measures provided on the August 19th call and the degree it helps investors compare VeriFone to its peer firms.

I believe that we need to refine the non-GAAP net-income measures introduced in August and to provide a measure that is better aligned to non-GAAP presentations by peer firms. The calculation of non-GAAP net income will now reflect deductions for depreciation and amortization of PP&E and capitalized software and other charges. To help our analysts track performance on this basis, we are providing a line-by-line reconciliation of non-GAAP measures in our press release.

In addition, you will find a Spreadsheet on the Investor Relations section of our website that has the non-GAAP income statement by quarter starting with the first quarter of fiscal 2007 along with a reconciliation to GAAP.

Non-GAAP net income on this refined basis for the three months ended July 31, 2008 was $0.32 per diluted share compared with $0.34 per diluted share for the comparable period in 2007. This is consistent with guidance.

Our guidance for the fourth quarter and 2009 remains unchanged with the exception of the refinement for non-GAAP net income discussed previously. This brings our guidance for Q4 ending October 31st to revenue of between $260 million and $268 million and non-GAAP net income per share in the range of $0.33 to $0.36 per share.

For fiscal 2009, we project revenue to be in the range of $1.3 billion to $1.9 billion and non-GAAP net income per share is expected to be in the range of $1.23 to $1.43.

I will now turn it back over to Doug for some concluding remarks.

Douglas G. Bergeron - Chief Executive Officer

Thanks Bob. To summarize, we have a lot of exciting things happening here and we remain very excited about our prospects for 2009.

We expect to begin reaping the benefits of our cost reduction efforts, to double down on our emerging markets' focus with vertically targeted solutions and hopefully with some assistance from the economy, return to enjoying a better, higher margin contribution for North America, especially with Secure Pump and pay at the table.

Even in challenging macroeconomic times, we have good opportunities ahead to further differentiate our products and services, focused on cost and expense management and increase shareholder value.

I would now like to open up the call to your questions.

Question And Answer

Operator

[Operator Instructions]. Your first question comes from line of Tien-Tsin Huang. Please proceed with your question.

Tien-Tsin Huang - JPMorgan

Hi, thanks. Just wanted to I guess first confirm that the only change in guidance is really just the inclusion of the PP&E-related depreciation that I calculate to be about $0.03 per quarter.

Robert Dykes - Senior Vice President and Chief Financial Officer Designate

That's right. It's between $0.02 and $0.03. It rounds to $0.03 and so we change it just for that.

Tien-Tsin Huang - JPMorgan

Terrific. Glad to see that. And then the... I guess just a couple of questions on the revenue line. Doug, the bookings performance in North America, how is that tracking in the fourth quarter and is there potential to see sequential growth in the fourth quarter or is there potentially some more decay [ph] there?

Douglas G. Bergeron - Chief Executive Officer

We haven't seen any material pick up in North America since the last book in August Tien-Tsin. We have got a lot of products ready for sale, but many of them unfortunately are leveraged to a more opportunistic environment. So I would not count on North America being a huge driver until the macroeconomic environment domestically picks up.

Tien-Tsin Huang - JPMorgan

Okay. And then in Latin America, I know you mentioned it, but there was a pretty big sequential uptick in the third quarter. Any unusual items in there and is this level sustainable for the fourth quarter?

Douglas G. Bergeron - Chief Executive Officer

What was unusual is our unusually good execution by management in Latin America led by Fernando. I think it was a little higher than you should expect going forward. They had an exceptional quarter and they will continue to perform well, but likely not at that type of level.

Tien-Tsin Huang - JPMorgan

Okay. And then lastly just on the gross margins, I was glad to see that you're basically halfway to your 40% target. It sounds like 1% was coming from corporate costs. You also called out the product reengineering and how that steps up in the next two to three quarters, but just broadly speaking, is there anything we should assume that could be non-linear going forward on the gross margin in the coming quarters from these items [ph]

Douglas G. Bergeron - Chief Executive Officer

There is enough moving parts in our business geographically product mix wise, COGS accruals related to various elements of the supply chain that it would be frankly unreasonable to expect monotonic... monotonically directional changes to gross margins. They will go up and they will go down. But I think generally speaking, you should be looking, as we said, for a nice improvement on our cost redesign efforts by the... in our second quarter results next year and a full... the full benefit of our cost redesign efforts in the numbers by the end of next year.

Tien-Tsin Huang - JPMorgan

Got it. Thank you.

Operator

Your next question comes from Julio Quinteros. Please proceed with your question.

Julio Quinteros - Goldman Sachs

Great. Can you just go back real quick? I want to make sure I have the actual numbers. I think this time you guys were talking about absolutes in terms of the revenue for fiscal year '09 versus the previous ranges. Would you mind just giving us those for fiscal year '09 again?

Robert Dykes - Senior Vice President and Chief Financial Officer Designate

For fiscal year '09, these are absolute numbers, but... and it is a range. We said $1.3 billion to $1.9 billion.

Unidentified Company Representative

1.03 to 1.09.

Julio Quinteros - Goldman Sachs

That makes more sense, the second set. Sorry.

Unidentified Company Representative

Yes.

Julio Quinteros - Goldman Sachs

Got it, yes, 1.03 to 1.09.

Unidentified Company Representative

Yes, 1.30 billion or 1.90 billion, yes.

Julio Quinteros - Goldman Sachs

Okay, got it, that makes sense. And then Robert, I guess as you guys are... well, as you sort of settle into any role here, maybe if you could give us sort of your top two or three priorities sort of outside the things that have been discussed but some other things that you could really help drive from either a financials control perspective, the things that still need improvement or other areas that you really want to focus on as you really begin to settle into the new role here?

Robert Dykes - Senior Vice President and Chief Financial Officer Designate

Well, clearly, because the restatement, we still need some continued improvement and the financial organization is working on making sure that all of the recommendations that have been put in place by the audit committee, by our auditors et cetera are actually affected. And so it's going to take a little while to do that. A lot of good work has been done already. So we would make sure that that is the highest priority.

I come from a strong manufacturing background as well, and so I will be working with our manufacturing folks to help... and engineering to help really continue to drive the costs down and achieve those gross margin improvements. I also have a lot of software experience and there is a lot of opportunity here to improve the ancillary services that we sell around these products. So I think there's good opportunity to provide software and other services around the VeriFone products to improve margins and to improve growth.

Julio Quinteros - Goldman Sachs

Okay, great. And then finally, from... just from that the way that you guys provide guidance, just want to make sure I understand. Is that a constant currency number and if not, what is the implied FX impacting the number for fiscal year '09?

Unidentified Company Representative

It's a constant currency number.

Robert Dykes - Senior Vice President and Chief Financial Officer Designate

Yes. We sell most of our products in U.S. dollars. There is a small portion in euro, but we are saying that's the U.S. dollar number. So $1.03 billion to $1.09 billion is the range.

Julio Quinteros - Goldman Sachs

Okay. Great. Thanks guys.

Unidentified Company Representative

Almost all of our emerging markets revenue is either denominated in dollars or converted to dollars for purposes of the transaction. So the vast majority of revenue is in dollars.

Julio Quinteros - Goldman Sachs

Great. Thanks.

Operator

Your next question comes from the line of Gil Luria with Wedbush. Please proceed with your question.

Gil Luria - Wedbush Morgan Securities Inc.

Thank you for taking my question. I'll actually follow up on that last one. So constant currency growth for the third quarter was 12%, or close to that?

Unidentified Company Representative

Yes.

Gil Luria - Wedbush Morgan Securities Inc.

And then second question is you made a couple of small acquisitions along the way here. I think Peripheral Computer Industries, and there was also a report of an acquisition in Israel of a product named Gazette [ph] or something like that. What was their contribution to third quarter growth of that 12%?

Douglas G. Bergeron - Chief Executive Officer

Less than $1 million of total revenue I believe plus or minus a few hundred thousand. So it was a complete rounding here [ph].

Gil Luria - Wedbush Morgan Securities Inc.

That includes the Gazette [ph]?

Douglas G. Bergeron - Chief Executive Officer

We only had Gazette [ph] for I think a month or a month and a half in the quarter. And that is a relatively small business with trailing single-digit million to revenues for the year.

Gil Luria - Wedbush Morgan Securities Inc.

Got it. And then the other question is what... I understand the cash tax calculation that you have for... especially going forward, but what cash tax... how much cash taxes do you plan on paying this year for fiscal year '08?

Robert Dykes - Senior Vice President and Chief Financial Officer Designate

So the actually tax cash rate is around 27%.

Unidentified Company Representative

28%.

Robert Dykes - Senior Vice President and Chief Financial Officer Designate

Yes, 28%. And so that just multiply that times your forecast for the non-GAAP profit before tax.

Gil Luria - Wedbush Morgan Securities Inc.

Is that the actual taxes that you're going to pay this year?

Robert Dykes - Senior Vice President and Chief Financial Officer Designate

Well, that's based on the... yes, that's right, cash taxes. Yes.

Gil Luria - Wedbush Morgan Securities Inc.

And one last question. On that 1 percentage point adjustment to gross margins, can you elaborate on what that is and what the nature of that is? Could that happen in the future at all? Is that just in this quarter?

Douglas G. Bergeron - Chief Executive Officer

It does happen from time-to-time. We have to, in and around the introduction of new products, take estimates on obsolescence and warranty provisions. Sometimes we estimate too little, sometimes we estimate too much. And we true them up as soon as the better facts are known. That's all that was.

Gil Luria - Wedbush Morgan Securities Inc.

But we shouldn't count on it going forward then?

Douglas G. Bergeron - Chief Executive Officer

You can always count on us introducing new products and making for their estimates. But this was not something that you should model into Q4, correct.

Gil Luria - Wedbush Morgan Securities Inc.

Thanks so much.

Operator

Your next question comes from the line of Andrew Jeffrey with SunTrust. Please proceed with your question.

Andrew Jeffrey - SunTrust Robinson Humphrey

Hi guys. You'd obviously given us a sense of what this quarter was going to look like, and the international growth is pretty remarkable. Some of the questions... I would say the bulk of the questions I have been getting since you've come back and started talking publicly again surround revenue visibility. And Doug, absent a North American economic recovery, U.S. economic recovery, can you just talk a little bit, I mean frame up to the greatest extent you could, even quantitatively, what gives you such conviction in your 10% to 15% organic revenue growth projection for fiscal '09? And just a little color on that I think would be really helpful.

Douglas G. Bergeron - Chief Executive Officer

Right, well, on a top down basis, we're not assuming any change to the macroeconomic environment in the emerging markets. We are factoring in a slowdown, perhaps a slowdown that trails the U.S. slowdown in Western Europe. But offsetting that expectation in Western Europe is an expectation that we can make some market share advantages for the reasons that I previously stated.

And to confirm the premise of your question, we're not assuming, although we remain hopeful, we are not assuming any material pick up in the U.S. environment at least for the first half... first three quarters of the year.

To give you some further comfort on why we think our revenues will be in that range, again, the engine of growth for VeriFone over the last year and certainly next year will be the emerging markets. There is still a largely unfulfilled demand by governments, by banks and by other industries outside of banking for systems that securely move these types of transactions around. And in many cases the motivation for those purchases is somewhat uncorrelated to the... even to the shorter term economic environment because I mean they increase VATs and they just bring these economies further into the 21st century.

The further point is we had a pretty miserable first half of the year this year. We've described this as largely restatement distraction. But we are the beneficiaries no doubt of those pretty crummy comps. And that I guess is helpful with respect to offsetting the probably gloomier than normal outlook that we would expect for most years.

Andrew Jeffrey - SunTrust Robinson Humphrey

Is there the possibility or the likelihood of significant quarterly revenue growth volatility? Obviously, you note the strength of Latin America in the third quarter. Or would you expect all quarters of '09 to kind of fall into that range?

Douglas G. Bergeron - Chief Executive Officer

We would expect that the first quarter of the year will be slower. We are always impacted by Chinese New Year and... which is... affects both demand and supply and by the distractions of the holidays, which is a tough environment for us with major retailers. And our first quarter falls over the holiday period. But adjusting for that, we would expect sequential growth throughout the year in the quarters following Q1 to get us solidly within the range that we've discussed.

Andrew Jeffrey - SunTrust Robinson Humphrey

Okay. You made a comment in the U.S. about having a lot of products are ready to go and being faced with paucity of demand. Is there any inventory obsolescence risk if we don't see a pick up in the U.S. say in 9 months, 12 months? I mean what's the shelf life of the products from an accounting standpoint?

Douglas G. Bergeron - Chief Executive Officer

Right here in 2001, and from 2001 to 2007, the instance of... mid-2007... the instance of obsolescence was unheard of I mean beyond the normal statistical accruals that we make. This is an industry that thrives on consistency, likes to buy the same products from the same networks for multiple years. And but for the PCI that last year, which created a wholesale obsolescence of much of our inventory on hand, and that's why it was so difficult to manage, all of our new products are PCI ready and really don't subject themselves to any type of obsolescence or write-off concern in the intermediate term. Furthermore, the products that we're talking about in North America are recently released products that are very early on in their life.

Andrew Jeffrey - SunTrust Robinson Humphrey

Okay. And then if I can just squeeze in one more, if I may. Just to clarify so I'm crystal clear on gross margin, obviously 100 BPs improvement that's not recurring in the third quarter. But you did say you would pick up 50 in the fourth. So net, 50 basis points down all else being equal 3Q to 4Q?

Douglas G. Bergeron - Chief Executive Officer

We didn't say that. We gave you two data points. There is a lot of other... again, one of the biggest drivers of total gross margin percentage is the variable mix of product across our hundreds of products and product variance and country. And until the final votes are cast through the quarter, it's very difficult within 100 to 150 basis point tolerance to know exactly how that mix is going to wash out. So we gave you a couple bigger items, but certainly, if a high margin company... country has an outstanding quarter, it helps. If a low margin country like India has an outstanding quarter, it hurts. And it's really difficult to be overly exact in our outlook for that.

Andrew Jeffrey - SunTrust Robinson Humphrey

Okay. Thank you very much.

Operator

[Operator Instructions]. Your next question comes from the line of Robert Dodd with Morgan Keegan. Please proceed with your question.

Robert Dodd - Morgan Keegan

Hi guys. A couple of house keeping ones and then another one on currency. You mentioned Q1 you expect to be somewhat slower. I assume you meant sequentially slower, right? I mean it's one of your easier year-over-year comparisons.

Douglas G. Bergeron - Chief Executive Officer

There is no doubt we will be up over Q1 2007 by a meaningful amount. What I was suggesting was I would not expect revenues relative to Q4 to be up; that's for sure.

Robert Dodd - Morgan Keegan

Got it, right. I saw also that you've just filed the S1 on the convert shares. Can you just tell us what that means for interest expense and any other accounting that that filing now changes?

Douglas G. Bergeron - Chief Executive Officer

I think we touched upon this on the last call and my notes are a little bit removed. My recollection is that once we hold the Annual General Meeting and the shareholders approve the requisite shares that are needed to fulfill the obligations under the convertible to convert, then the 50 basis point, I recall, premium that we're paying reverts to... goes away and we continue paying one and three eighths.

Robert Dodd - Morgan Keegan

Got it, thank you. And then just one final question. I mean I note most of your products, as you say, are priced in dollars. What effect... so you don't have any benefit drag from currency translation, but what effect could it have in terms of with the dollar strengthening, your customers actually seeing effective in their local currencies, seeing prices increase perhaps versus seeing several years of steadily declining prices in their local functional currencies?

Douglas G. Bergeron - Chief Executive Officer

That's not always the case because not every currency in the world is appreciated against the dollar. I would say that it's been the standard with our competitors in Europe to also price in dollars in most of these countries. So it's... it hasn't in the past during rising dollar days or... nor in declining dollar days had measurable impact on customer consumption.

Robert Dodd - Morgan Keegan

Okay. Thank you.

Operator

There are no further questions at this time. I will now turn the call back over to Mr. Doug Bergeron for any closing remarks.

Douglas G. Bergeron - Chief Executive Officer

Thank you everyone. It was a pleasure talking to you today and we look forward to putting our heads down and getting back to work. Talk to you soon.

Operator

Thank you for your participation in today's conference. This concludes the presentation. You may now disconnect.

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Source: VeriFone Holdings, Inc. F3Q08 (Qtr. End 06/30/08) Earnings Call Transcript
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