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.

Steve Symington has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.