The ratings on VeriFone Systems Inc. reflect Standard&Poor's Ratings Services' expectation that consistent profitability and a moderately leveraged financial profile will offset the company's relatively narrow business profile and vulnerability to potential macroeconomic weakness. VeriFone designs, markets, and services system solutions that enable secure electronic payments. Revenues for the quarter ended July 2010 were $261.5 million, up almost 24% from very weak levels a year ago. The company's "weak" business profile reflects a relatively narrow position in the niche market for electronic payment solutions, and the need to competitively respond to evolving technology standards. However, new mobile-based product initiatives and ongoing customer systems upgrades needed to comply with Payment Card Industry (PCI) standards should continue to support revenue
