 1 1 Financial Results for the First Quarter Ended January 31, 2010 1 Exhibit 99.1 |
 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. 2 |
 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. 3 |
 Non-GAAP Profit & Loss Overview 4 ($ in thousands, except EPS) $ $ $ $ $ Revenue 214,163 -12.8% 201,684 -5.8% 211,371 4.8% 217,898 3.1% 223,400 2.5% Gross Margin 75,309 -11.5% 68,221 -9.4% 77,777 14.0% 82,531 6.1% 87,631 6.2% Gross Margin % 35.2% 33.8% 36.8% 37.9% 39.2% Operating Expense 50,687 -7.5% 44,841 -11.5% 43,541 -2.9% 47,814 9.8% 51,911 8.6% Operating Expense % 23.7% 22.2% 20.6% 21.9% 23.2% Operating Profit 24,622 -18.7% 23,380 -5.0% 34,236 46.4% 34,717 1.4% 35,720 2.9% Operating Margin % 11.5% 11.6% 16.2% 15.9% 16.0% Net Interest and Other (4,384) -41.0% (3,967) -9.5% (3,622) -8.7% (4,229) 16.8% (4,451) 5.2% Pretax Profit 20,238 -11.5% 19,413 -4.1% 30,614 57.7% 30,488 -0.4% 31,269 2.6% Taxes 5,667 -11.5% 5,436 -4.1% 8,572 57.7% 8,537 -0.4% 8,755 2.6% Net Income 14,571 -11.5% 13,977 -4.1% 22,042 57.7% 21,951 -0.4% 22,514 2.6% Net Income % 6.8% 6.9% 10.4% 10.1% 10.1% EPS 0.17 -10.5% 0.17 0.0% 0.26 52.9% 0.26 0.0% 0.26 0.0% Q109 Q409 Sequential Inc(Dec) % Sequential Inc(Dec) % Sequential Inc(Dec) % Sequential Inc(Dec) % Q209 Q309 Q110 Sequential Inc(Dec) % |
 Revenue Profile Services 15.8% Emerging Markets 40.1% Developed Markets 59.9% System Solutions 84.2% Q110 Revenue 5 ($ in thousands) $ $ $ $ $ North America 83,900 -10.0% 83,444 -0.5% 89,034 6.7% 87,067 -2.2% 89,613 2.9% Europe 66,141 -14.8% 63,773 -3.6% 67,148 5.3% 68,485 2.0% 69,374 1.3% Latin America 43,608 -17.4% 40,339 -7.5% 30,561 -24.2% 35,563 16.4% 40,623 14.2% Asia 20,514 -6.0% 14,128 -31.1% 24,628 74.3% 26,783 8.8% 23,790 -11.2% Total 214,163 -12.8% 201,684 -5.8% 211,371 4.8% 217,898 3.1% 223,400 2.5% Q110 Sequential Inc(Dec) % Q109 Q209 Q309 Q409 Sequential Inc(Dec) % Sequential Inc(Dec) % Sequential Inc(Dec) % Sequential Inc(Dec) % |
 Major Strategic Initiatives • End-to-End Encryption with VeriShield Protect • PAYware Mobile for the Apple iPhone and other Smart Phones • VeriFone Media Solutions • Mobile Phone Initiated Payments 6 |
 Encryption and PCI Compliance Question Is encrypted cardholder data considered cardholder data that must be protected in accordance with PCI DSS? Answer ….. encrypted data may be deemed out of scope if, and only if, it has been validated that the entity that possesses encrypted cardholder data does not have the means to decrypt it. Any technological implementation or vendor solution should be validated to ensure both physical and logical controls are in place in accordance with industry best practices, prohibiting the entity, or malicious users that may gain access to the entity’s environment, from obtaining access to Keys. Source: PCI Standards Council FAQ 7 |
 PAYware Mobile • PAYware Mobile Solution – Secure Card Encryption Sleeve (with VeriShield) – Payment App – VeriFone Gateway certified with all major Processors/ Financial Institutions • Channel Development - Traditional processor and financial institutions - 70+ ISOs signed on as resellers - www.paywaremobile.com - Apple retail stores and online Apple Store for business (March) - Party and In-home direct sales enterprises • Product Roadmap (later this year) – Blackberry, Android – EMV Chip and PIN (international launch) 8 |
 VeriFone Media Solutions • Traditional and cutting edge Digital Taxi Media in 23 major markets • 25,000+ taxis across 23 markets • Dense penetration in major pedestrian cities and continuing to expand 1.5 Billion Daily Impressions Across 23 Markets VeriFone Media Solutions is the premier taxi media platform that delivers quality impressions in hard-to-reach and extended dwell “cab”tive environments 9 |
 Trunkbow International Holdings and Mobile Payment Initiation • Trunkbow is a Jinan, China-based provider of technology platforms that enable mobile payment and value-added service applications • China is the world’s largest mobile phone market – over 700 million subscribers – and mobile phones are playing an increasingly active role in payment initiation • VeriFone co-led a $22.5M financing for Trunkbow and obtained an 8.6% ownership stake • VeriFone has been appointed preferred provider of POS systems for Trunkbow and its mobile operator partners deploying mobile payment Applications for 3G Growth 10 |
 Financial Results and Guidance 11 |
 Non-GAAP Gross Margin Review 12 Q109 Q209 Q309 Q409 Q110 System Solutions 34.2% 31.6% 35.6% 37.1% 39.0% Services 41.8% 47.4% 44.5% 42.3% 40.5% Total 35.2% 33.8% 36.8% 37.9% 39.2% % of Revenue |
 Non-GAAP Operating Expenses 13 Q109 Q209 Q309 Q409 Q110 Research and Development 7.4% 6.8% 6.8% 7.0% 7.2% Sales and Marketing 7.8% 7.5% 7.1% 8.2% 8.3% G&A 8.5% 7.9% 6.7% 6.7% 7.7% Total 23.7% 22.2% 20.6% 21.9% 23.2% Non-GAAP Operating Expenses as Reported ($M) 50.7 44.8 43.5 47.8 51.9 Non-GAAP Operating Expenses, Constant Currency ($M) 52.0 47.2 44.8 48.4 51.9 % of Revenue |
 Cash Flow and Balance Sheet 14 ($ in thousands, except Days) $ $ $ $ $ Cash Flow from Operations before Changes in Working Capital 18,761 19,773 35,674 26,779 34,324 Cash Flow from Operations 7,099 62,459 57,792 75,259 54,109 Key Balance Sheet Items: Cash 155,075 201,306 254,812 324,996 374,617 Accounts Receivables, net 158,479 69 165,980 77 176,069 78 157,357 68 152,471 64 Accounts Receivables Reserves (4,949) (5,021) (4,667) (4,556) (3,813) Inventories, net 139,770 96 105,641 81 98,480 66 95,921 62 94,496 63 Inventories Reserves (33,790) (40,684) (38,254) (33,045) (29,485) Accounts Payable 49,533 32 61,118 41 74,813 51 87,094 58 88,194 58 Deferred Revenue, net 59,081 61,088 63,937 63,962 66,366 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. Q110 Days Q209 Q309 Q109 Q409 Days Days Days Days |
 Debt Review 15 Q109 Q209 Q309 Q409 Q110 ($ in millions, except ratio calculations) Jan. 2009 Apr. 2009 Jul. 2009 Oct. 2009 Jan. 2010 Total Leverage Ratio 1 Consolidated Funded Indebtedness $116.3 $87.2 $30.7 ($36.9) ($81.2) less Cash on Hand 2 Consolidated EBITDA for Last Four Quarters $77.9 $85.7 $93.5 $118.4 $136.1 Actual Result [= line 1 / line 2] $1.5 1.0 0.3 (0.3) (0.6) 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 $69.1 $69.4 $86.3 $109.0 $122.8 less Consolidated Capital Expenditures as Adjusted less Consolidated Cash Taxes 4 Consolidated Cash Interest Expense $16.5 $16.1 $10.1 $9.0 $8.3 plus Consolidated Scheduled Debt Payments Actual Result [= line 3 / line 4] 4.2 4.3 8.6 12.1 14.7 Minimum Level for Compliance 2.0 2.0 2.0 2.0 2.0 Compliant? Yes Yes Yes Yes Yes |
 Guidance • For the second quarter ending April 30, 2010, VeriFone expects to record net revenues to be between $225 million and $230 million. Non-GAAP net income per share is projected to be in the range of $0.25 to $0.26. • For the full year of fiscal 2010, VeriFone expects net revenues to be between $925 million and $940 million. Non-GAAP net income per share is projected to be in the range of $1.00 to $1.10, for the same time period. 16 |
 17 17 Financial Results for the First Quarter Ended January 31, 2010 |