Revenue during the quarter dropped 9.71 percent to $464.20 million from $514.10 million in the previous year period. Gross margin for the quarter contracted 386 basis points over the previous year period to 38.24 percent. Operating margin for the quarter stood at negative 0.19 percent as compared to a positive 6.57 percent for the previous year period.

Operating loss for the quarter was $0.90 million, compared with an operating income of $33.80 million in the previous year period.

However, the adjusted operating income for the quarter stood at $48.70 million compared to $64.90 million in the prior year period. At the same time, adjusted operating margin contracted 213 basis points in the quarter to 10.49 percent from 12.62 percent in the last year period.

“Our fourth quarter results were better than our outlook on both the top and bottom line. Total revenues were consistent with our expectations of EMV-related demand in the U.S., we reported 16% growth in Services revenues from both acquisitions and organic business, and we saw good growth in EMEA and Latin America as a result of several important competitive wins," said Paul Galant, chief executive officer of Verifone. “There is significant opportunity ahead for our business as we move through the many cash to cashless migrations that are happening across the globe, and I am looking forward to addressing our customers’ evolving needs with our newest device platform as we launch pilots, obtain certifications and begin generating more meaningful sales volumes in 2017.”

For the first-quarter, Verifone Systems expects revenue to be $446 million. Verifone Systems projects revenue to be in the range of $1,895 million to $1,910 million for financial year 2016. For the first-quarter, Verifone Systems forecasts adjusted revenue to be $450 million. Verifone Systems projects adjusted revenue to be in the range of $1,900 million to $1,915 million for financial year 2016. The company projects diluted earnings per share to be $0.08 for the first-quarter. For financial year 2016, the company forecasts diluted earnings per share to be in the range of $0.37 to $0.41. On an adjusted basis, the company expects diluted earnings per share to be $0.20 for the first-quarter. For financial year 2016, the company forecasts diluted earnings per share to be in the range of $1.35 to $1.39 on adjusted basis.

The company has spent $275.20 million cash to meet investing activities during the year as against cash outgo of $128.40 million in the last year.

Cash flow from financing activities was $24.40 million for the year as against cash outgo of $133.60 million in the last year period.

Cash and cash equivalents stood at $148.40 million as on Oct. 31, 2016, down 28.96 percent or $60.50 million from $208.90 million on Oct. 31, 2015.

Working capital declines
Verifone Systems Inc has witnessed a decline in the working capital over the last year. It stood at $218.60 million as at Oct. 31, 2016, down 9.30 percent or $22.42 million from $241.02 million on Oct. 31, 2015. Current ratio was at 1.41 as on Oct. 31, 2016, down from 1.45 on Oct. 31, 2015.

Cash conversion cycle (CCC) has increased to 35 days for the quarter from 23 days for the last year period. Days sales outstanding were almost stable at 32 days for the quarter, when compared with the last year period.

Days inventory outstanding has increased to 28 days for the quarter compared with 20 days for the previous year period. At the same time, days payable outstanding went down to 25 days for the quarter from 29 for the same period last year.