 Financial Results for the Fourth Quarter and Fiscal Year Ended October 31, 2009 Exhibit 99.1 |
 2 Forward-Looking Statements Today’s discussion may include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements relate to future events and expectations and involve known and unknown risks and uncertainties. VeriFone’s actual results or actions may differ materially from those projected in the forward- looking statements. For a summary of the specific risk factors that could cause results to differ materially from those expressed in the forward-looking statements, please refer to VeriFone’s filings with the Securities and Exchange Commission, including its annual report on Form 10-K and quarterly reports on Form 10-Q. VeriFone is under no obligation to, and expressly disclaims any obligation to update or alter its forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise. |
 3 Non GAAP Financial Measures With respect to any non-GAAP financial measures presented in the information, reconciliations of non-GAAP to GAAP financial measures may be found in VeriFone’s quarterly earnings release as filed with the Securities and Exchange Commission. Management uses non-GAAP financial measures only in addition to and in conjunction with results presented in accordance with GAAP. Management believes that these non-GAAP financial measures help it to evaluate VeriFone’s performance and to compare VeriFone’s current results with those for prior periods as well as with the results of peer companies. These non-GAAP financial measures contain limitations and should be considered as a supplement to, and not as a substitute for, or superior to, disclosures made in accordance with GAAP. |
 4 Non-GAAP Profit & Loss Overview ($ in thousands, except EPS) $ $ $ $ Revenue 214,163 -12.8% 201,684 -5.8% 211,371 4.8% 217,898 3.1% Gross Margin 75,309 -11.5% 68,221 -9.4% 77,777 14.0% 82,531 6.1% Gross Margin % 35.2% 33.8% 36.8% 37.9% Operating Expense 50,687 -7.5% 44,841 -11.5% 43,541 -2.9% 47,814 9.8% Operating Expense % 23.7% 22.2% 20.6% 21.9% Operating Profit 24,622 -18.7% 23,380 -5.0% 34,236 46.4% 34,717 1.4% Operating Margin % 11.5% 11.6% 16.2% 15.9% Net Interest and Other (4,384) -41.0% (3,967) -9.5% (3,622) -8.7% (4,229) 16.8% Pretax Profit 20,238 -11.5% 19,413 -4.1% 30,614 57.7% 30,488 -0.4% Taxes 5,667 -11.5% 5,436 -4.1% 8,572 57.7% 8,537 -0.4% Net Income 14,571 -11.5% 13,977 -4.1% 22,042 57.7% 21,951 -0.4% Net Income % 6.8% 6.9% 10.4% 10.1% EPS 0.17 -10.5% 0.17 0.0% 0.26 52.9% 0.26 0.0% Q109 Q409 Sequential Inc(Dec) % Sequential Inc(Dec) % Sequential Inc(Dec) % Sequential Inc(Dec) % Q209 Q309 |
 5 Revenue Profile Services 14.6% Emerging Markets 40.0% Developed Markets 60.0% System Solutions 85.4% Q409 Revenue ($ in thousands) $ $ $ $ North America 83,900 -10.0% 83,444 -0.5% 89,034 6.7% 87,066 -2.2% Europe 66,141 -14.8% 63,773 -3.6% 67,148 5.3% 68,485 2.0% Latin America 43,608 -17.4% 40,339 -7.5% 30,561 -24.2% 35,563 16.4% Asia 20,514 -6.0% 14,128 -31.1% 24,628 74.3% 26,784 8.8% Total 214,163 -12.8% 201,684 -5.8% 211,371 4.8% 217,898 3.1% Q109 Q209 Q309 Q409 Sequential Inc(Dec) % Sequential Inc(Dec) % Sequential Inc(Dec) % Sequential Inc(Dec) % |
 6 TaxiTV Media • 10,700 media enabled taxis • 6 major metros • 122M advertiser impressions per month • Full sight, sound, motion • Highly desirable audience • Captive uncluttered environment • Measurable • Accountable • Interactive |
 7 Visa Data Field Encryption Best Practices Security Goal Best Practice Limit clear text availability of cardholder data and sensitive authentication data to the point of encryption and the point of decryption. 1. Clear text cardholder and authentication data shall only be available at the point of encryption and decryption. 2. All cardholder data shall be encrypted using only approved encryption algorithms (e.g. AES, TDES). 3. All cardholder data and authentication data shall be encrypted except the first 6 and last 4 digits of the PAN. 4. Sensitive authentication data must not be stored after authorization even if encrypted (per PCI DSS). Use robust key management solutions consistent with international and/or regional standards. 5. Keys shall be managed per ANSI X9.24/ISO 11568 within Secure Cryptographic Devices such as a PED, HSM, etc. 6. All keys and key components shall be generated using an approved random process such as NIST SP 800-22. 7. Documentation describing key management solution must be made available upon request for evaluation purposes. 8. a) Keys shall be conveyed in a secure manner such as the key X9/TR-34 Interoperable Method for Distribution Keys 8 b) If remote key distribution is used, mutual authentication of the sending and receiving devices shall be performed. 9. Keys used in the data field encryption process must be unique per device Use key-lengths and cryptographic algorithms consistent with international and/or regional standards. 10. Encryption keys shall have strength of at least 112 equivalent bit strength. 11. FPE must be evaluated by an independent security evaluation organization and subjected to a peer review. Protect devices used to perform cryptographic operations against physical/logical compromises. 12. Devices used to perform cryptographic operations should undergo independent assessment to ensure that the hardware and software they are using is resilient to attack. 13. Keys shall be protected against physical and logical compromise. Public keys shall be protected from substitution and their integrity and authenticity shall be ensured. Use an alternate account or transaction identifier for business processes that requires the primary account number to be utilized after authorization,. 14. If any cardholder data is needed after authorization, a transaction ID or token should be used instead. VeriShield Protect Meets Visa Data Field Encryption Best Practices |
 8 VeriShield Protect Initiative • RBS WorldPay and Chase Paymentech announced adoption and remarketing to their retail customers • Two other processors have agreed to accept incoming transactions encrypted by VSP • Two large customers now live, processing over five million transactions per week • Several other national retailers nearly live; waiting for Holiday shopping season to pass • Services-based revenue model is being sustained due to enormous cost benefits to customer and risk reduction |
 9 Introducing PAYware Mobile Effortless, Wireless • Quickly turns the iPhone into a robust payment device • Complete solution (payment app + reader) • Eliminates human error from manual entry • Easily captures signatures Security In Motion • End-to-end encryption with VeriShield Protect • Developed by the leader in secure payments Saves Merchants Time and Money • Lowers transaction fees by over 30% • Reduces deposit slips and manual receipts Durability, Backed by Experience • Over 30 years of experience in field-tested, payment technology • From the maker of first mass-market payment device • Highest quality components Rock Solid Freedom Trust the payment leader for the most solid, secure payment solution for iPhones |
 10 Non-GAAP Gross Margin Review FY08 Q109 Q209 Q309 Q409 System Solutions 35.6% 34.2% 31.6% 35.6% 37.1% Services 37.7% 41.8% 47.4% 44.5% 42.3% Total 35.8% 35.2% 33.8% 36.8% 37.9% % of Revenue |
 11 Non GAAP Operating Expenses FY08 Q109 Q209 Q309 Q409 Research and Development 7.2% 7.4% 6.8% 6.8% 7.0% Sales and Marketing 8.9% 7.8% 7.5% 7.1% 8.2% G&A 7.9% 8.5% 7.9% 6.7% 6.7% Total 24.0% 23.7% 22.2% 20.6% 21.9% Non GAAP Operating Expense as Reported ($M) 221.5 50.7 44.8 43.5 47.8 Non GAAP Operating Expense, Constant Currency ($M) 207.4 51.5 46.9 44.4 47.8 % of Revenue |
 12 Cash Flow and Balance Sheet ($ in thousands, except Days) $ $ $ $ Cash Flow from Operations before Changes in Working Capital 15,694 18,482 37,622 29,188 Cash Flow from Operations 7,099 62,459 57,792 75,259 Key Balance Sheet Items: Cash 155,075 201,306 254,812 324,996 Accounts Receivables, net 158,479 69 165,980 77 176,069 78 157,357 68 Accounts Receivables Reserves (4,949) (5,021) (4,667) (4,556) Inventories, net 139,770 96 105,641 81 98,480 66 95,921 62 Inventories Reserves (33,790) (40,684) (38,254) (33,045) Accounts Payable 49,533 32 61,118 41 74,813 51 87,094 58 Deferred Revenue, net 59,081 61,088 63,937 63,962 Note: Accounts Receivable Days Sales Outstanding is calculated based on Gross Accounts Receivable Net of Reserve for Product Returns Days in Inventory is calculated as Average Net Inventory divided by Total Cost of Goods Sold Days in Accounts Payable is calculated as Accounts Payable divided by Total Cost of Goods Sold Q209 Q309 Q109 Q409 Days Days Days Days |
 13 Debt Review Q4 FY08 Q1 FY09 Q2 FY09 Q3 FY09 ($ in millions, except ratio calculations) Oct. 2008 Jan. 2009 Apr. 2009 Jul. 2009 Total Leverage Ratio 1 Consolidated Funded Indebtedness [a] $113.7 $116.3 $87.2 $30.7 ($36.9) less Cash on Hand 2 Consolidated EBITDA for Last Four Quarters [b] $61.4 $77.9 $85.7 $93.5 $118.4 Actual Result [= line 1 / line 2] 1.9 1.5 1.0 0.3 (0.3) Maximum Level for Compliance 3.5 3.5 3.5 3.5 3.5 Compliant? Yes Yes Yes Yes Yes Fixed Charge Coverage Ratio For Last Four Quarters: 3 Consolidated EBITDA $47.4 $69.1 $69.4 $86.3 $109.0 less Consolidated Capital Expenditures as Adjusted less Consolidated Cash Taxes 4 Consolidated Cash Interest Expense [c] $16.3 $16.5 $16.1 $10.1 $9.0 plus Consolidated Scheduled Debt Payments Actual Result [= line 3 / line 4] 2.9 4.2 4.3 8.6 12.1 Minimum Level for Compliance 2.0 2.0 2.0 2.0 2.0 Compliant? Yes Yes Yes Yes Yes Oct. 2009 Q4 FY09 |
 14 Guidance • For the first quarter ending January 31, 2010, VeriFone expects to record net revenues of between $215 and $218 million. Non-GAAP net income per share is projected to be in the range of $0.22 to $0.23. • For the full year of fiscal 2010, VeriFone expects net revenues to be between $900 million and $915 million. Non-GAAP net income per share is projected to be in the range of $0.97 to $1.07, for the same time period. |
 Financial Results for the Fourth Quarter and Fiscal Year Ended October 31, 2009 |