Verifone Systems Inc. (PAY) swung to a net loss for the quarter ended Jan. 31, 2017. The company has made a net loss of $16.60 million, or $ 0.15 a share in the quarter, against a net profit of $23.50 million, or $0.21 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $23.20 million, or $0.21 a share compared with $53.70 million or $0.48 a share, a year ago. Revenue during the quarter dropped 11.61 percent to $453.90 million from $513.50 million in the previous year period. Gross margin for the quarter contracted 417 basis points over the previous year period to 37.76 percent. Operating margin for the quarter stood at negative 0.97 percent as compared to a positive 7.05 percent for the previous year period.
Operating loss for the quarter was $4.40 million, compared with an operating income of $36.20 million in the previous year period.
However, the adjusted operating income for the quarter stood at $38.10 million compared to $72.20 million in the prior year period. At the same time, adjusted operating margin contracted 567 basis points in the quarter to 8.39 percent from 14.06 percent in the last year period.
"Our first quarter results were better than our outlook on both the top and bottom line. Total revenues were as expected or better across all of our major geographies, with particular strength coming from the Asia Pacific region," said Paul Galant, chief executive officer of Verifone. "We continue to be on track with our execution during what is an important launch year for our next generation devices and services. By scaling these devices and connecting them with our expanded services, we will establish platforms that power the future of payments and commerce."
For financial year 2017, Verifone Systems Inc. expects revenue to be in the range of $1,895 million to $1,910 million. It expects adjusted revenue to be in the range of $1,900 million to $1,915 million. It projects diluted earnings per share to be in the range of $0.32 to $0.36. It projects diluted earnings per share to be in the range of $1.35 to $1.39 on adjusted basis for the same period.
For the second-quarter, Verifone Systems Inc. expects diluted earnings per share to be $0.04. It projects diluted earnings per share to be $0.29 on an adjusted basis. It projects GAAP and Non-GAAP net revenues of approximately $470 million to $474 million, for the same period.
Operating cash flow drops significantly
Verifone Systems has generated cash of $44.70 million from operating activities during the quarter, down 32.68 percent or $ 21.70 million, when compared with the last year period. The company has spent $18.40 million cash to meet investing activities during the quarter as against cash outgo of $119.60 million in the last year period.
The company has spent $26.90 million cash to carry out financing activities during the quarter as against cash inflow of $50.20 million in the last year period.
Cash and cash equivalents stood at $147 million as on Jan. 31, 2017, down 20.84 percent or $38.70 million from $185.70 million on Jan. 31, 2016.
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