The ratings on VeriFone Systems Inc. reflect Standard&Poor's Ratings Services' expectation that recent revenue growth will continue and consistent profitability will lead to sustained debt leverage of 3x or less over the intermediate term. We believe the Hypercom acquisition will be completed in the second half of 2011 and the newly combined entity will benefit from operational and end-market synergies, despite near-term integration risks from overlapping operations in various geographies. VeriFone designs, markets, and services system solutions that enable secure electronic payments. Revenues for the first quarter ended January 2011 were $284 million, up 27% from weak levels a year ago. The company's fair business profile reflects a relatively narrow position in the electronic payment solutions market, and
