VeriFone 1Q 2014 Earnings Conference Call Highlights - Paymentus Holdings (NYSE:PAY)

The following bullets are highlights from the

VeriFone SystemsPAY

first quarter 2014 conference call. The bullets begin with comments from CEO Paul Galant and conclude with comments from CFO Marc E. Rothman.

We've moved aggressively to fix how VeriFone is managed by executing our three top VeriFone initiatives: first, redefining our global product management processes and portfolio; second, reengineering our R&D function; and third, improving our cost structure.
We have identified at least 25 percent of SKUs for rationalization and replacement.
As we streamline our R&D organization, we will free up resources and begin directing approximately 10 percent of our R&D budget to focus on new commercial innovation.
We've begun the process of streamlining our existing 132 legal entities to 70.
In Western Europe, we've gained the MasterCard contactless approvals that are important in that region, especially in the UK.
We remain on track to introduce a new portable product in Brazil by late fiscal year 2014.
Today, we provide more than 50 percent of the world's EMV-capable terminals.
In Q1, 70 percent of terminals shipped by VeriFone in the U.S. were EMV-capable, and we expect this to trend higher.
We estimate over the next several years approximately 3 million additional EMV terminals will be added to the U.S. market on top of the current installed base.
VeriFone's encryption solution,VeriShield Protect, is the de facto standard for eight of the top 11 U.S. acquirers.
170 national U.S. merchants have engaged us to encrypt data at the point of swipe with VeriFone solutions.
For the first fiscal quarter, we reported net revenues of $437 million, exceeding our guidance of $425 million to $430 million.
Our net revenues were up 2 percent from year ago and up 1 percent sequentially.
Non-GAAP earnings per share were $0.31 exceeding our expectations by $0.05.
North American revenues were $122 million compared to $124 million last quarter.
Turning to Latin America, revenues for the first quarter were $68 million, down 3 percent sequentially.
In Europe, the Middle East and Africa, revenues of $186 million were up 3 percent sequentially.
Turning to Asia, Q1 revenue of $60 million, were up 6 percent on a sequential basis.
Our consolidated gross margin first was 42.4 percent, an increase of 120 basis points from our fourth quarter.
For Q2, we're guiding non-GAAP revenues in the range of $440 million to $445 million and non-GAAP earnings of $0.30 to $0.32 per share.
For the full fiscal year 2014, we expect revenues in the range of $1.78 billion to $1.81 billion and earnings per share of $1.40.

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