Verifone Systems Inc NYSE:PAY" target="_blank" rel="nofollow" >(NYSE:PAY), the international payment solution provider, released its earning report for Q4 2011 today, Monday, at 4:30 PM EST. It’s net revenues were $425 million compared with $411 Million in Q4 $ 317 million in Q3, and $292 in Q2 of 2011. Net revenues for the entire year 2011 were calculated at around 1.9 billion, while earnings per share were set at 0.50-0.52 cents per share. Analyst’s forecast for the first Quarter of the new year for net revenues of around $417 million were mildly exceeded by the company. They are also forecasting an earnings per Share of $0.53. The company exceeded this with a number of $0.58.
The positive results of the company stems from the expansion of its market worldwide. Electronic payments, the companies primary business, has become the norm in western countries and has even begun to make headway in the developing world, particularly in the BRIC emerging economies. Verifone celebrated it’s millionth install in Russia in last years fourth quarter. The explosion in the market has made it easier to increase revenue but Verifone has not gotten complacent, pursuing constant innovation and making key acquisitions.
Though growing well, Verifone faces fierce challenges from its competitors. These include NCR, ACI Worldwide and JDA software, who all also provide commercial electronic payment systems. All three of these companies outperformed expectations in the fourth quarter of last year. The expansion in the market has allowed all of the companies to earn well. This creates an uncertain future as the market will eventually become saturated. There is also the looming shadow of new payment technologies such as Google’s Wallet Service that could cause uncertainty in the future.
Verifone is one of the world’s largest providers of point of payment technology. The company is based in California the company manufactures leading debit and credit card hardware for merchants and provide the software, operating systems, and support for these systems. The company’s staples are counter top electronic payments and wireless pin keypads.