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Point-of-sale terminal maker VeriFone Holdings Inc. has lowered its earnings estimate for the fiscal fourth quarter ended Oct. 31, citing "uncertainty and turmoil in the global economy" and volatility in currency-exchange rates, the company announced today. Investors reacted sharply to the news. In early morning trading, VeriFone's stock was trading at $3.38 per share, down 45% from Wednesday's close of $6.19. San Jose, Calif.-based VeriFone predicts its fourth-quarter revenue will total between $244 million and $246 million, down 6% to 8% from the company's Sept. 9 guidance of $260 million to $268 million. The company reported $238 million in revenue for last year's fourth quarter. VeriFone also says it is making "significant reductions in operating expenses," but provided no details. VeriFone expects to release its fourth-quarter results Dec. 16. The faltering global economy has affected VeriFone sales across the globe, Robert R. Dykes, VeriFone chief financial officer, says in a statement. Higher-than-expected foreign-exchange losses and "the volatility of exchange rates" meant product costs grew faster than VeriFone's ability to adjust to local-currency prices, the company says. "We expected a period of uncertainty to persist until financial confidence returns to the market," Dykes says in the statement. VeriFone has scheduled a conference call for later today to discuss its fourth-quarter outlook.
