VeriFone Holdings posts 1Q loss

VeriFone Holdings Inc., which makes payment processing equipment, on Tuesday reported a fiscal first-quarter loss, mainly due to a hefty charge as the value of some assets declined, but adjusted results beat expectations.

During the three months ended Jan. 31, the company lost $182 million, or $2.15 per share, from $33.5 million, or 40 cents per share last year. Excluding a goodwill impairment charge related to the decline in value of some assets, plus other one-time items, net income totaled 17 cents per share.

That beat expectations of 15 cents per share that analysts polled by Thomson Reuters, on average, expected. Analysts estimates typically exclude one-time items.

Revenue rose 15 percent to $214 million from $185.5 million a year ago, while analysts expected revenue of $220.9 million.

Douglas G. Bergeron, chief executive of the San Jose, Calif., company, said he expects VeriFone's markets will be challenging throughout the rest of the year.

The company gave earnings guidance for the fiscal second-quarter and year that was in line with analyst expectations, but revenue guidance fell short.

Shares rose 20 cents or 5.3 percent, to $4 during aftermarket trading, after finishing the trading day up 15 cents at $3.80.