Should You Buy Into VeriFone?

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VeriFone Systems Inc. (NYSE:PAY) is the global leader in secure electronic payment solutions. It designs, markets, and services electronic payment solutions at the point of sale “POS” worldwide. It provides countertop electronic payment systems that accept card payment options, such as NFC, mobile wallets, chip and PIN, and contactless payments, as well as support credit and debit card, EBT, EMV, and other PIN-based transactions. It supplements these with an array of software applications and application libraries as well as portable solutions that support 3G, GPRS, Bluetooth, and WiFi technologies.

In addition, it provides mobile payment solutions for various segments of the mobile point of sale environment, contactless peripherals, network access solutions, security solutions,payment-as-a-service and other managed services, terminal management, payment-enabled media, and payment system security solutions. Further, the company offers equipment repair or maintenance, gateway processing, remote terminal management, software post-contract support, customized application development, helpdesk, customer service, warehousing, and encryption or tokenization services. It makes money by primarily serving financial institutions, payment processors, petroleum companies, transportation companies, government organizations, healthcare companies, quick service restaurants, taxi fleets, advertisers and media companies, merchants and retailers; and distributors, resellers, system integrators, and independent sales organizations. But should you buy the stock here?

The company is doing quite well. And I expect it to continue delivering. For the three months ended April 30, 2014 GAAP net revenues were $466 million, compared to $426 million a year ago, a 9 percent increase. Non-GAAP net revenues for Q2 FY14 were $467 million, compared to $430 million a year ago, a 9 percent increase. GAAP net loss per diluted share was $0.22, compared to a net loss of $0.54 a year ago. Non-GAAP net income per diluted share was $0.37, compared to $0.42 a year ago.

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