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VeriFone Systems, Inc.

5/18/2013, 7:16 AM ET

Quote & Headlines Market Currents StockTalk

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Tuesday, May 14, 1:49 PM PayPal (EBAY) is pulling out all the stops to challenge Square in the iPad cash register space: it's now offering free payment processing for 2013 to any U.S. business that exchanges a register for a PayPal Here solution, which includes a stand, cash drawer, and printer. Meanwhile, Square is rolling out a $299 stand/card swiper for its iPad solution, and Groupon (GRPN) is launching a register app, rebranding its mobile payments unit (includes a restaurant app) as Breadcrumb, and offering $5K in free payment processing to new clients. VeriFone (PAY) and NCR, whose traditional offerings are threatened by the likes of Square, also offer iPad point-of-sale solutions, as does NetSuite's (N) Retail Anywhere unit. 1 Comment [Tech, Consumer]
Tuesday, April 23, 10:38 AM VeriFone (PAY +10.5%) tacks on a gain after announcing it landed a two-year contract to provide managed services for as many as 100K POS payment devices operated by ChinaPnR. The deal will see the company handle complex payment devices for ChinaPnR in a market expected to boom. 1 Comment [Consumer, On the Move]
Friday, April 19, 10:19 AM VeriFone (PAY -3.1%) slumps after getting hit with a downgrade to Neutral from Compass Point. Referencing VeriFone's recent troubles, the firm argues "the lack of investor demand [in shares] reflects lingering near-term concerns that warrant caution," in spite of upbeat management commentary and a CEO change. CP sees "significant downside risk in the event of any negative surprise." Comment! [Tech, On the Move, Quick Ideas]
Wednesday, April 3, 2:31 PM A management shakeup can't save VeriFone (PAY -2.1%) from secular trends, argues Deutsche while reiterating a Sell. "With numerous competitors entering the payment sector (either bypassing hardware or giving it away for free), we believe market share losses, pricing pressure, and extended upgrade cycles, will all [cause] significant challenges to PAY," writes analyst Bryan Keane. He also sees the rise of mobile point-of-sale/dongle solutions (such as Square) likely affecting VeriFone's growth, particularly in emerging markets. Comment! [Tech, On the Move]
Monday, April 1, 3:32 PM VeriFone Systems (PAY +2.4%) looks like a P-E target with shares off sharply this year and the company without a permanent CEO in place to block a takeover. A private buyer could take advantage of the company's steady cash flow and look to expand into new services, according to analysts. The Street's take on PAY: "The vultures are circling." 2 Comments [Consumer, On the Move]
Monday, March 18, 1:31 PM VeriFone (PAY +3.5%) appoints Eliezer Yanay, the head of its R&D, supply chain, and product management efforts, to the newly-created position of COO. The company has also named three regional heads for the Americas and EMEA. Investors are taking kindly to the moves, much as they did to last week's removal of CEO Douglas Berenson. VeriFone has blamed its recent woes in large part on sales execution and R&D issues. Comment! [Tech, On the Move]
Tuesday, March 12, 10:26 AM Susquehanna upgrades VeriFone (PAY +7.5%) to Positive following news long-time CEO Douglas Berenson is out. The firm thinks VeriFone might now be an M&A target, and also foresees an upgrade cycle for EMV payment systems. Wedbush also likes the move, but is more cautious. "We believe the new CEO and new CFO Marc Rothman will need to repair the damage their predecessors have left behind, which could lead to further negative developments ... over the next few months/quarters." 2 Comments [Tech, On the Move, Quick Ideas]
Tuesday, March 12, 9:10 AM Premarket gainers: GLUU +23%. OCZ +15%. LLEN +12%. HEK +9%. PAY +7%. RFIL +7%. YUM +6%.
Losers: PWRD -10%. CBMX -7%. FCEL -7%. RSH -7%. DMND -6%. YNDX -6%. CALI -6%. 1 Comment [On the Move]
Monday, March 11, 6:06 PM After-hours top gainers, as of 5:30 p.m.: HEK +10%. IRBT +10%. PAY +8%. YUM +6%. HTZ +6%.
After-hours top losers: PWRD -9%. DMND -6%. GOV -5%. [PCRX -5%. SLCA -3%. Comment! [On the Move]
Monday, March 11, 4:24 PM VeriFone (PAY) +8.3% AH after announcing CEO Douglas Berenson is stepping down, effective tomorrow, and that chairman Rich McGinn will serve as interim CEO while a search commences for a full-time successor. Director Leslie Denend will serve as interim chairman. Berenson, who is also resigning from VeriFone's board, has been CEO since 2001. The company's recent troubles seem to be responsible for his departure. (PR) 1 Comment [Tech, On the Move, Breaking News]
Wednesday, March 6, 1:09 PM VeriFone (PAY +10%) gets a relief rally, as reassuring comments from management and sell-side fans overshadow weak results and guidance expected following its warning. UBS, which thinks a turnaround can happen in 6-12 months, argues secular trends and VeriFone's competitive positioning remain solid. Goldman, however, sees VeriFone's troubles taking several quarters to resolve. Management mentioned on the earnings call it's ramping investments in product customization, and suggested it got ahead of itself in shifting to a services-focused business model. Comment! [Tech, On the Move, Earnings]
Wednesday, March 6, 9:10 AM Premarket gainers: PRAN +13%. PBR +12%. CYTX +9%. PPHM +8%. GEVO +8%. MTG +8%. TSL +8%. HNR +7%. BIG +7%.PBR.A +6%. PAY +5%. WPRT +5%.
Losers: AVAV -25%. TFM -11%. AEO -9%. SOHU -8%. QIHU -5%. NBG -5%. Comment! [On the Move]
Tuesday, March 5, 7:11 PM A lot of VeriFone's (PAY) problems are self-inflicted, CEO Douglas Bergeron stated on the payment-processing hardware firm's FQ1 call. Poor sales execution and (notable in light of Square's success) a failure to tailor VeriFone's products for local merchants are among the shortcomings he sees, and "senior management changes" are among his proposed remedies. Shares now +2.9% AH. (VeriFone FQ1: I, II). Comment! [Tech, Earnings]
Tuesday, March 5, 6:07 PM After-hours top gainers, as of 5:30 p.m.: HCI +11%. ELX +10%. HNR +8%. PAY +5%. BPZ +4%.
After-hours top losers: AVAV -22%. HLS -11%. NAVB -7%. JMBA -6%. IMUC -5%. Comment! [On the Move]
Tuesday, March 5, 4:28 PM More on VeriFone: FQ1 results met/beat the guidance provided in the Feb. 20 warning. FQ2 guidance the same as that provided on Feb. 20. FY13 guidance is for revenue of $1.8B-$1.83B and EPS of $1.90-$2.10, largely unfavorable to a consensus of $1.81B and $2.11. FY13 free cash flow pegged at $170M-$190M. FQ1 system sales -10% Y/Y (were +5% in FQ4), services +38% (lifted by M&A) and now 34% of revenue. EMEA sales -15% Q/Q, Latin America -9%, Asia-Pac -14%, North America -9%. PAY nearly unchanged AH. CC at 4:30PM ET (webcast), (PR) Comment! [Tech, Earnings]
Tuesday, March 5, 4:04 PM VeriFone (PAY): FQ1 EPS of $0.51 beats by $0.03. Non-GAAP Revenue of $430M (+1% Y/Y) misses by $1.47M. (PR) Comment! [Earnings, Breaking News, Tech]