VeriFone says CEO to step down

Mon Mar 11, 2013 5:22pm EDT

(Reuters) - VeriFone Systems Inc (PAY.N), a maker of credit card swipe machines, said Chief Executive Douglas Bergeron will step down, less than three weeks after the company slashed its profit outlook citing a weak global economy.

The company's shares were up at $22.20 in extended trading after closing at $20.46 on the New York Stock Exchange on Monday.

Analysts had rejected the company's argument that its problems stemmed from the weak economy, and had also questioned the company's management for its poor forecasting.

VeriFone, based in San Jose, California, sells payments equipment to shops and restaurants. The company is seeking to move more to a service model for its systems, rather than straight equipment sales.

A U.S. appeals court revived a proposed securities class action against VeriFone in December that alleged CEO Bergeron was "reckless" in the accounting of its financial reports.

The company said Chairman Richard McGinn will replace Bergeron in the interim.

(Reporting by Neha Alawadhi in Bangalore; Editing by Supriya Kurane)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.