The cull at Verifone has finally begun after the mistakes of 2007. To recap, Verifone massively overstated their operating profits for the first 9 months of 2007 by $36.9 million, although at the time they claimed that it was only by $27 billion. As a result, their share price has fallen from close to $50 per share to what is now $15.94.
The Verifone CFO, Barry Zwarenstein, has now resigned which was the most obvious move. Other changes have been instituted such as the chairmanship being taken away from CEO Douglas Bergeron, to be filled by Charles Rinehart, the supply chain controller being fired and better IT and enterprise resource planning systems. Global headcount has been reduced by 6%.
Hopefully, these steps will enable them to put all this behind them.
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