Image source: Verifone Systems Inc.

What: Shares of VeriFone Systems Inc. (NYSE:PAY) were down 29.2% as of 10:30 a.m. EDT Wednesday after the payments and commerce solutions company announced mixed fiscal second-quarter 2016 earnings, a new restructuring initiative, and disappointing forward guidance.

So what: Adjusted quarterly revenue rose 8.6% year over year, to $532 million, and translated to a 6% increase in adjusted earnings per diluted share, to $0.47. By comparison, Verifone's guidance called for adjusted revenue of $530 million, and net income per diluted share of $0.51 to $0.52.

Verifone CEO Paul Galant stated:

Q2 was a mixed quarter for Verifone as we grew our business, but experienced several difficult market dynamics. As a result, it is necessary for us to adjust for these risks and update our oulook for FY16 to $2.100 billion dollars of revenue and $1.85 of earnings per share. We are aggressively executing mitigating actions including a headcount restructuring and a review of underperforming businesses.

Now what: For perspective, that's a reduction from previous guidance for full-year adjusted revenue of $2.15 billion to $2.17 billion, and adjusted net income per share of $2.21 to $2.24.

For the current (fiscal third) quarter, Verifone anticipates adjusted revenue of $515 million, and adjusted net income per share of $0.40. Analysts, on average, were expecting fiscal Q3 revenue of $552.1 million, and earnings of $0.59 per share.

To Verifone's credit, Galant also insisted the company is committed to disciplined execution of its strategy, and continues to make progress in both bringing next-gen devices to market and launching its new services platform. And the company expects its restructuring and headcount reduction initiatives to generate roughly $30 million in annual savings starting in 2017.

But Verifone has plenty of work to do in the meantime. In the end, given Verifone's impending under-performance as it works through its current market headwinds, it's no surprise to see investors taking a big step back today.