VeriFone third-quarter revenue misses view; shares fall
(Reuters) - Credit card swipe machines maker VeriFone Systems Inc (PAY.N), whose Brazilian unit was destroyed by a fire, recorded quarterly sales below market estimates and forecast weak revenue for the fourth quarter.
VeriFone shares fell 15 percent to $30 in heavy trading after the bell.
The company said a fire destroyed its Brazilian staging and repair center in early July, hurting quarterly results.
"The impact to the quarter was less than $10 million, causing a reduction in services revenue and a major distraction to our sales efforts where all product sales depend upon service commitments," Chief Executive Douglas Bergeron said in a conference call with analysts.
The company, which expects the destroyed facility to be a drag on the current quarter, forecast adjusted profit of 75 cents to 77 cents per share for the fourth quarter. It also expects adjusted revenue of $495 million to $500 million.
Analysts on average were expecting an adjusted profit of 74 cents per share on revenue of $519.4 million, according to Thomson Reuters I/B/E/S.
"Most of the impact was in August ... We have now recovered from all of that and we have confidence that things will rebound in the first quarter," Bergeron said.
Net income attributable to the company rose to $37.7 million, or 34 cents per share, from $26.3 million, or 28 cents per share, a year earlier.
Excluding items, it earned 75 cents per share. Adjusted revenue rose 56 percent to $493 million.
Analysts expected an adjusted profit of 70 cents per share on revenue of $498.2 million.
The company's shares, which have lost 35 percent in about four months, closed at $35.38 on the New York Stock Exchange on Wednesday.
(Reporting by Supantha Mukherjee & Aurindom Mukherjee in Bangalore; Editing by Joyjeet Das)