VeriFone Holdings,Inc. (PAY) recently announced a strategic initiative to leverage its current and future payment assets into the rapidly growing payment-enabled media marketplace.
Management stated that consumers now want to take advantage of electronic payment options in locations that offer unique media and marketing opportunities. VeriFone currently provides advertising opportunities on a number of its taxi cab payment systems in New York City.
Management now intends to broaden this footprint nationwide and begin a major initiative introducing other payment-enabled media opportunities.
As part of this new initiative, VeriFone is announcing a major refresh of its taxicab technology to include IP-connected Flash 10 technology and dynamic content generation capabilities. VeriFone intends to roll this technology out to all of its New York taxicabs by June 2010.
Additionally, VeriFone intends to build its payment-enabled media sales force to more than 20 sales representatives serving both local and national media buyers. Management expects to accomplish this by the first quarter of 2010. Earlier this month, the company reported results for the first quarter of fiscal 2010 which beat management estimates.
Management stated that it sees a recovery in all international markets and some signs of improvement in the domestic marketplace. Management believes that the growth in American markets is driven by recovery from the stimulus and the environment should become challenging once the effects of the stimulus wane.
Our long-term recommendation for VeriFone is Neutral, which means the stock will perform in line with the broader market.
Based in San Jose, California, VeriFone designs, markets and services a transaction automation system that facilitates electronic payments among consumers, merchants and financial institutions.
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