VeriFone Holdings Inc. has completed an independent audit of its accounting practices and issued tentative results for its last fiscal year, which ended Oct. 31.
The San Jose terminal maker also said Wednesday that it is seeking a new chief financial officer; Barry Zwarenstein, its executive vice president and CFO, has submitted his resignation, which will take effect once its restated financial reports are completed.
VeriFone had said in December that it would restate its earnings for most of last year. The audit found that the company must reduce its previously reported inventories and cut its previously reported operating income for its first three fiscal quarters of last year by $36.9 million. That cut is $7.2 million larger than VeriFone's December estimate.
Also Wednesday, VeriFone said it has separated its chairman and chief executive roles and elected Charles Rinehart, one of its directors, as its chairman.
VeriFone said it expects to report that fiscal fourth-quarter revenue rose 53% from a year earlier, to $238.9 million, and full-year revenue increased 56%, to $903.9 million.
Tien-tsin Huang, an analyst at JPMorgan Securities Inc., wrote in a research note published Wednesday that VeriFone's update "suggests trends are weaker than we expected" and shows that its internal controls were ineffective.
