Good position in the growing electronic payment solutions market; Improved consistency of operating performance; and Diversified customer and geographical base. Relatively narrow business profile; Constantly evolving technological and regulatory standards; and Somewhat aggressive acquisition policy. 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
