VeriFone says fourth-quarter will miss estimates

The company, which makes payment processing equipment, said it expects its fiscal 2008 performance will miss Wall Street's estimates too. It is due to announce its earnings on Dec. 16 for the fourth quarter and fiscal year.

It said during the quarter it posted foreign exchange losses steeper than what it had expected. VeriFone said product costs were rising and its local currency pricing could not keep up with the rapidly changing foreign exchange rates.

It said after the market closed Wednesday it expects net revenue in the three-month period ending in October to fall to a range of $244 million to $246 million, which is below its previous range of $260 million to $268 million.

VeriFone said it expects non-GAAP net earnings per share for the fourth quarter to range from 18 cents to 20 cents, down from its estimate in September that it would earn between 33 cents and 36 cents per share.

The revised predictions fall short of Wall Street's estimates. Analysts had forecast the company would earn 34 cents a share on revenue of nearly $263.6 million, according to Thomson Reuters.

For fiscal 2008, VeriFone expects non-GAAP net income per share to range of 73 cents to 75 cents on net revenue ranging from $922 million to $924 million.

Analysts are predicting the company will earn 87 cents a share in fiscal 2008 on revenue of $940.9 million, according to Thomson.

VeriFone said it also expects to have a goodwill impairment charge and it is now determining the amount and the timing of the charge.

The announcement came after the market closed Wednesday. VeriFone's shares fell 51 cents, or 7.6 percent to $6.19 during the regular trading session. In after-hours trading the shares fell another 59 cents, or 9.5 percent, to $5.60.