UPDATE 2-VeriFone CFO resigns after probe confirms fincl errors
April 2nd, 2008 | by admin |(Adds details, share movement)
April 2 (Reuters) - Electronic payment technology providerVeriFone Holdings Inc’s (PAY.N: Quote, Profile, Research) chief financial officerresigned in the midst of a probe into errors related to thecompany’s accounting for its inventory, sending its shares totheir lowest in more than two years.
In December, the company had said it would restate somefinancial statements due to errors in accounting and delayreporting its fourth-quarter results.
In a statement on Wednesday, the company said it expectsoperating income for the first three quarters of 2007 to beless that what it had announced in December.
This was mainly due to a higher cost of revenue than whatwas originally reported, it added.
For nine months ended July 31, 2007, the company expects anaggregate decrease of about $36.9 million in operating income.Earlier, the company had estimated a decrease of about $29.7million.
CFO Barry Zwarenstein’s resignation will become effectiveon the completion of the restatement and filing of VeriFone’squarterly and annual report with the U.S. regulators, thecompany said in a statement. The company will begin a searchfor a new CFO immediately.
VeriFone added that it will separate the roles of thechairman and chief executive and named Charles Rinehart, anindependent director of VeriFone since May 2006, to serve asthe new non-executive chairman.
San Jose, California-based VeriFone also reaffirmed itsfourth-quarter and full year 2007 revenue forecast, in linewith analysts’ expectations.
