Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Verifone's Efforts Pay Off

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Verifone (NYSE: PAY  ) , the secure electronic payment solutions company, declared a great set of fourth-quarter results that exceeded analyst expectations. Let's take a closer, Foolish look at how Verifone's moves paid off.

Paving its way to success
The San Jose, Calif.-based company witnessed an exciting fourth quarter as profits nearly quadrupled from the year-ago period to $198.8 million. The huge jump in profits was mainly due to an income tax benefit that the company enjoyed to the tune of $205.1 million and 50% higher revenues of $410.7 million. However, if you exclude extraordinary items like the income tax benefit, the company's profits still rose by 57.9% to $57 million from the previous year's adjusted fourth-quarter profit.

Verifone's business has been booming across most geographical regions. In complete defiance of the European debt crises, the company's combined revenue from Europe, Middle East, and Africa more than doubled from the year-ago quarter to $148.6 million. Verifone's Latin American operations also saw revenues zoom 94.1% to 104.6 million, while Asia saw 40.3% higher revenues. However, revenues from Canada declined by 5.3% to $115.7 million.

Spreading its wings
Verifone's fourth quarter was certainly quite busy with two acquisitions under its belt. 
In November, Verifone announced its acquisition of Global Bay Mobile Technologies, a provider of next-generation mobile retail solutions. The company said that the acquisition would enhance Verifone's initiatives to bring the smartphone- and tablet-based shopping and payment experience to retail businesses. This would certainly be helpful, especially at a time when smartphones and tablets like the Apple iPhone and iPad are the craze.

Besides that, back in August, the company finalized its acquisition of Hypercom, a manufacturer of point-of-sale terminals. The company said that the acquisition of Hypercom would complement its business and Verifone would try to enhance all of Hypercom's product lines under the Verifone brand itself.

Come rain or shine...
The company was also busy lapping up key partnerships during the quarter. For example, Verifone entered into a partnership with Visa (NYSE: V  ) to increase installations of in-taxi payment and media systems in London before the Olympic games in 2012. The deal has led to the signing up of nearly 7,000 cabs for a five-year agreement. Verifone anticipates installation of 10,000 credit card terminals before the commencement of the Olympics.

Verifone's strategic relationship with Google (Nasdaq: GOOG  ) also bore fruit during the quarter, as the Google Wallet mobile payment system now boasts approximately 40,000 Verifone retail lanes across the country with NFC capability. NFC, or near-field communication, is a feature present mainly in the latest range of smartphones that can be used for making payments instead of using the traditional swipe of a credit card. The company is also in talks with Verizon (NYSE: VZ  ) , AT&T (NYSE: T  ) , and T-Mobile's joint venture, Isis, along with Paypal for plans slated for 2012.

The Foolish bottom line
Verifone seems to be making all the right moves with its partnerships and acquisitions. Going forward, I feel that Verifone stands to gain immensely through its ongoing partnerships, which would continue to boost the company's top-line growth. So what do you Fools think of Verifone? Leave your comments in the box below. Also, don't forget to stay up to speed with Verifone's latest money-spinning deals by adding it to your very own watchlist. It's free and lets you stay on top of the latest news and analysis for your favorite companies.

Keki Fatakia does not hold shares in any of the companies mentioned in this article. The Motley Fool owns shares of Google. Motley Fool newsletter services have recommended buying shares of Visa and Google. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1749394, ~/Articles/ArticleHandler.aspx, 10/26/2016 9:41:37 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 25 minutes ago Sponsored by:
DOW 18,199.33 30.06 0.17%
S&P 500 2,139.43 -3.73 -0.17%
NASD 5,250.27 -33.13 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/26/2016 4:00 PM
PAY $15.99 Up +0.20 +1.27%
VeriFone Holdings CAPS Rating: ****
GOOGL $822.10 Down -6.45 -0.78%
Alphabet (A shares… CAPS Rating: *****
T $36.43 Down -0.27 -0.74%
AT and T CAPS Rating: ****
V $81.75 Down -0.28 -0.34%
Visa CAPS Rating: *****
VZ $47.63 Down -0.21 -0.44%
Verizon Communicat… CAPS Rating: ****