VeriFone Reports Strong Quarterly Results and New Multi-Lane Terminal

Point-of-sale terminal maker VeriFone Holdings Inc., which early this year led a long-awaited and closely watched initial public offering, reports its net income for the quarter ended July 31 reached $6.5 million, under generally accepted accounting principles. This represents a swing to a profit from the $2.9 million loss the company sustained in the year-ago period. The net came on a 21% jump in revenue to $125.7 million, driven in large part by a 36% increase in international sales. Among product highlights for the San Jose, Calif.-based company was the introduction of a multi-lane terminal with integrated PIN pad and full-motion video with digital sound, the MX870. The device allows large retailers to broadcast advertising to customers in-lane while processing payments. VeriFone, which derives one-third of its sales from independent sales organizations and other resellers, has said it wants to pursue closer relationships with ISOs to increase sales to small and medium-size merchants. This strategy was complicated last year when the company briefly operated a Web site that offered products directly to retailers. VeriFone shut down the site after ISOs and distributors complained. Some 25% of its sales come from petroleum companies and other merchants.