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Table of Contents

Lead Story

Interchange: What gives?

Patti Murphy
The Takoma Group

News

Industry Update

Sun setting on PCI version 1.1

Bohemia, payments style

No wiggle room with Red Flag Rule

Processing for newbies

VeriFone turns triple play

Features

GS Advisory Board:
What's up in this downturn? - Part II

The payments doctor is in

ISOMetrics:
Interchange in brief

Industry Leader

Stuart C. Harvey Jr. –
In the zone

Views

Building relationships - priceless

Biff Matthews
CardWare International

Education

Street SmartsSM:
MLS compensation options

Jason Felts
Advanced Merchant Services

PCI vendors: Welcome to the jungle

Tim Cranny
Panoptic Security Inc.

What's your business?

Daniel Wadleigh
Marketing Consultant

Admit, own, fix your bloopers

Jeff Fortney
Clearent LLC

Reduce stress, raise retention

Curt Hensley
CSH Consulting

Be calendar-wise

Adam Atlas
Attorney at Law

Sweet-spot MLS training

Christian Murray
Global eTelecom Inc.

New Products

Mobile computing for feet on the street

Dolphin 9900 Mobile Computer
Honeywell International Inc.

Back office synergy online

Synergy Express
Jack Henry & Associates Inc.

Inspiration

Revamp that problem mindset

Miscellaneous

POScript

Departments

Forum

Resource Guide

Datebook

Skyscraper Ad

The Green Sheet Online Edition

September 08, 2008  •  Issue 08:09:01

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VeriFone turns triple play

VeriFone is taking steps to quell volatility among its Wall Street investors and regain buyer confidence in its products and publicly traded stock after accounting errors in the first three quarters of 2007 caused the company's profit margins to be inflated.

On Aug. 19, 2008, VeriFone filed with the Securities and Exchange Commission an amended and restated report for the first three quarters of fiscal year 2007. Furthermore, the San Jose, Calif.-based POS terminal manufacturer filed a new annual report for fiscal 2007, as well as new reports for the first and second quarters of fiscal 2008.

Financial guidance for the final two quarters of fiscal 2008 and the full year ending Oct. 31, 2009, will be announced Sept. 9, 2008.

"What we're saying is that we are telling Wall Street what to look forward to," said Leah Roscoe, Vice President, Global Marketing, VeriFone. "It's been over a year since we've been able to speak publicly, so our CEO gave financial guidance on what to expect over the next year."

David Bergeron, Chief Executive Officer of VeriFone, said, "We expect our third and fourth quarters, beginning in May of this year, to be positive in many respects. Despite a slowdown in the U.S. market, we are seeing excellent growth internationally and in emerging markets like pay at the table."

Double vision

In December 2007, VeriFone divulged accounting errors that involved double-booking of shipments made from VeriFone's headquarters in Singapore to its main distribution center in Sacramento, Calif. An internal audit of more than 5 million documents found errors in its inventory valuation in Sacramento, Calif., Tel Aviv, Israel and other, smaller distribution centers.

The audit, conducted by approximately 70 forensic accountants, found no evidence of irregularities outside the first three quarters of 2007. Roscoe said human error accounted for the incorrect inventory count, as well as the misvaluation of manufacturing and distribution overhead.

In late 2007, Bergeron conceded the accounting errors were "unacceptable, and we're going to fix it and fix it fast."

Singularity of purpose

The company projects continued growth in 2008 and 2009 as a result of product cost reduction initiatives and improved pricing strategies. "I think the message for the ISO marketplace is that we're as strong and more committed than ever," Roscoe said. "We're still the market leader in the U.S., and we've continued to be aggressive and take the sales, marketing and business side of the company forward."

In 2008, VeriFone has expanded its operations through sales and acquisitions in Colombia, West Africa and the Caribbean. Recently, VeriFone signed processing agreements with Claim Jumper Restaurants LLC and the U.S. Postal Service.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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