Verifone reports larger-than-expected 2Q profit

Verifone Holdings Inc. on Tuesday reported that it was able to earn a profit in the second quarter as cost-controls offset weak revenue.

The San Jose, Calif.-based company, which provides electronic payment services, said it earned $18.6 million, or 22 cents per share, compared with a loss of $18 million, or 21 cents per share, for the same quarter of last year.

Excluding one-time items, the company earned $14 million, or 17 cents per share, for the latest quarter, beating Wall Street's 15-cent estimate, according to a Thomson Reuters poll.

Total revenue for the quarter ended April 30 fell 14 percent to $201.6 million, coming in shy of analysts' $208 million forecast.

"Our revenue results continued to be challenged by the difficult global economic environment," Douglas Bergeron, the company's chief executive, said in a statement. "It is still too early to predict when VeriFone's revenue will rebound, but we remain confident of our earnings and cash generation capabilities."

The company was able to cut operating expenses by 33 percent and cost of revenue by 14 percent during the quarter to boost its bottom line.

Verifone said it expects revenue to be flat in the third quarter and its adjusted income per share in the range of 15 to 18 cents per share. For the full 2009 fiscal year, Verifone expects adjusted net income to range between 65 and 70 cents per share.

Analysts have forecast third-quarter profit of 17 cents and full-year earnings per share of 67 cents.

Shares of Verifone fell 49 cents, or nearly 6 percent, to close at $8.18 Tuesday. In after-hours trading, shares fell 26 cents to $7.92.