VeriFone Holdings Inc. reported late Tuesday that it returned to profitability in its fiscal second quarter, but the point of sale terminal maker's sales continued to fall.
The San Jose company reported net income of $18.6 million, or 22 cents a share, in the quarter that ended April 30. For the year-earlier period it posted a loss of $18 million, or 21 cents a share.
Net revenue for the quarter fell 14%, to $201.6 million. VeriFone had reported losses for two consecutive quarters and three of the last four.
Earnings per share of 17 cents topped Wall Street's average estimate of 15 cents.
"We believe it is still too early to predict when VeriFone's revenue will rebound, but we do believe we may have seen a bottoming in some of the international markets where VeriFone's business is heavily dependent," Douglas G. Bergeron, the company's chief executive officer, said during a conference call with analysts to discuss the results.
"During these bad economic times, customers increasingly view VeriFone as a strongest and most dependable survivor and supplier, and we have gained market share here as a result of this," he said.
Revenue from VeriFone's North America business fell 17% in the quarter, while its international business' revenue fell 11%.
VeriFone said it expects to report earnings of 15 to 18 cents a share for its third quarter, and said it expects revenue to be flat compared with the second quarter.
For the full fiscal year, VeriFone said it expects revenues of range of $810 million to $830 million.