Revenue during the quarter dropped 9.99 percent to $473.70 million from $526.30 million in the previous year period. Gross margin for the quarter contracted 350 basis points over the previous year period to 36.48 percent. Operating margin for the quarter stood at negative 17.18 percent as compared to a positive 3.76 percent for the previous year period.

Operating loss for the quarter was $81.40 million, compared with an operating income of $19.80 million in the previous year period.

"The Verifone team delivered second quarter results at the high-end of our revenue forecast and above our earnings guidance. Revenue momentum was driven by double-digit sequential growth in our North America Retail and SMB verticals, and by strong demand for devices in India. We are excited about the level of client enthusiasm globally for our next generation platform-based solutions," said Paul Galant, chief executive officer of Verifone. "We are divesting non-strategic businesses and allocating our resources and capital to ensure the timely delivery of our new products, returning Verifone to growth in 2018."

For financial year 2017, Verifone Systems Inc. expects revenue to be in the range of $1,861 million to $1,866 million. It expects adjusted revenue to be in the range of $1,865 million to $1,870 million. It projects diluted earnings per share to be in the range of $0.51 to $0.53. It projects diluted earnings per share to be in the range of $1.32 to $1.34 on adjusted basis for the same period.

For the third-quarter, Verifone Systems Inc. expects revenue to be in the range of $463 million to $465 million. It expects adjusted revenue to be in the range of $463 million to $465 million. It projects diluted earnings per share to be in the range of $0.14 to $0.15. It projects diluted earnings per share to be in the range of $0.35 to $0.36 on an adjusted basis for the same period.

The company has spent $34.50 million cash to meet investing activities during the first six months as against cash outgo of $228 million in the last year period.

The company has spent $57.50 million cash to carry out financing activities during the first six months as against cash inflow of $61 million in the last year period.

Cash and cash equivalents stood at $134.50 million as on Apr. 30, 2017, down 14.11 percent or $22.10 million from $156.60 million on Apr. 30, 2016.

Working capital decreases marginally
Verifone Systems Inc. has witnessed a decline in the working capital over the last year. It stood at $221.90 million as at Apr. 30, 2017, down 1.99 percent or $4.50 million from $226.40 million on Apr. 30, 2016. Current ratio was at 1.38 as on Apr. 30, 2017, up from 1.37 on Apr. 30, 2016.

Cash conversion cycle (CCC) has increased to 30 days for the quarter from 25 days for the last year period. Days sales outstanding went down to 31 days for the quarter compared with 34 days for the same period last year.

Days inventory outstanding has decreased to 21 days for the quarter compared with 22 days for the previous year period. At the same time, days payable outstanding went down to 23 days for the quarter from 31 for the same period last year.