VeriFone Systems, Inc. (NYSE:PAY) Q4 2017 Earnings Conference Call - Final Transcript

Mar 08, 2018 • 04:30 pm ET

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VeriFone Systems, Inc. (NYSE:PAY) Q4 2017 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to the Verifone Fiscal Fourth Quarter 2017 Earnings Conference Call. [Operator Instructions]. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions].

I would now like to hand the floor over to Chris Mammone, Vice President of Investor Relations. Please go ahead, sir.

Executive
Christopher Mammone

Thank you, Karen, and welcome everyone to Verifone's Fourth Quarter Fiscal 2017 Conference Call. With me today is our CEO, Paul Galant; our CFO, Marc Rothman; and our Chief Strategy Officer, Vin D'Agostino. After our prepared remarks, there will be a question-and-answer period in which we ask you to limit yourself to one question and one follow-up. An audio recording of this call will be available on our Investor Relations website for the next 30 days.

Certain information you will hear on this conference call consists of forward-looking statements, including management's view of future events and financial performance. These statements are subject to various factors, risks, and uncertainties that could cause actual results to differ materially from our outlook.

For more information, I refer you to our SEC filings, including today's earnings release and our most recent 10-K and 10-Q. Any forward-looking statements speak only as of today, and Verifone is under no obligation to update these statements to reflect future events or circumstances. Please note that on today's call, we will refer to certain non-GAAP measures reconciliations of these measures to their most comparable GAAP measures and other information regarding the non-GAAP measures are presented in our earnings release, which is also available at ir.verifone.com.

Please always refer to this information for a comprehensive review of our financial results. Now, I'd like to turn the call over to Paul Galant, CEO of Verifone.

Executive
Paul Galant

Thank you, Chris, and good afternoon, everyone. Today, I'm going to highlight our Q4 and fiscal '17 results and accomplishments and then I'll discuss our strategic priorities that will return Verifone back to revenue and earnings per share growth in fiscal '18. Our Q4 revenue and earnings results were better than the outlook we shared with you back in September.

Verifone delivered year-over-year and sequential growth in both systems and services revenue for the first time since the peak demand period for USCMB upgrades in mid-2016. And we're especially pleased with our record Q4 services revenues. For the full fiscal year, Verifone generated $1.874 billion in non-GAAP total revenue and delivered $1.31 in non-GAAP earnings per share.

We made meaningful progress executing our strategy to transform Verifone from a terminal sales Company to a platform services Company, delivering payment and commerce solutions that help our clients generate new sales and reduce operating costs, while enabling Verifone to grow our base of recurring services revenue. To summarize, we accomplished four top strategic objectives in fiscal '17. First, we launched our next-generation devices.

Second, we connected a significant amount of our device footprint to our services platform. Third, we grew services capabilities in all of our regions and, fourth, we streamlined our business