After spending 2014 digging out of fiscal slump, Verifone is setting up for an aggressive product rollout in the year ahead as it recovery shifts into high gear.
During Verifone's 2015 fiscal year, the company will introduce a new terminal platform that will add more interactive features and shopping information, CEO Paul Galant said during a conference call to discuss earnings for its fiscal fourth quarter and full fiscal 2014, which ended Oct. 31.
"The industry is moving well beyond one dimensional, purpose-built devices," said Galant, who added that the level of investment in payments technology industry-wide is beyond anything he's ever seen in his career. "The new terminals will be powerful feature-rich endpoints that cover [online] and offline shopping experiences."
In 2015, which Galant called "the year of product," Verifone will introduce new mobile point of sale technology that will work across a number of operating systems. The company plans to leverage emerging communication technology to drive growth in its media and advertising services, Galant said.
"There's a moment of growth for merchants to deploy both fixed and mobile point of sale technology inside the store," Galant said.
Verifone's other new products include an expanded terminal line that allows merchants in developing countries to comply with tax regulations, as well as new technology aimed at merchants in China and the launch of a new multi-lane terminal.
The company will also leverage beacon technology to bolster its ability to deliver offers and marketing to mobile apps and within stores.
"These terminals will help merchants attract more customers and sell more products and services," Galant said.
Verifone staffed up for its product growth by hiring Glen Robson, the former CTO of Dell, to lead global terminal solutions for Verifone, Galant said.
Verifone has cleared the deck for its busy development pipeline through a number of cost-cutting measures over the past year as the company recovers from a period of underperformance.
Verifone reduced its number of terminal platforms from to 8, from 13, and reduced the number of sites for engineers from to 34, from 75. The company also trimmed its headcount in the past year to 5,300 from about 5,800, Galant said, adding Verifone's fragmentation and complexity had slowed deployments and increase costs. "It limited our ability to scale innovation," he said.
For its fourth quarter, Verifone reported net revenue of $491 million, up 14% from $431 million in the same period a year earlier. For the full fiscal year 2014, the company reported net revenue of $1.87 billion, a 9% increase over the prior year. Earnings per share were $0.27 for the fiscal fourth quarter, compared to a net loss of $2.26 the prior year. For the full year, its net loss was $0.34 per share compared to a loss of $2.73 the prior year.
Verifone's guidance for fiscal 2015 predicts a net revenue range of $2.02 billion to $2.04 billion.
"Over the past 12 months we have restored organic growth to the top line and have improved year over year profitability," Galant said. "We are earning back the trust of clients and recapturing market share."