VeriFone Holdings Inc. (PAY) recently announced the formation of its Global Security Solutions Business Unit. This unit will focus on delivering innovative security solutions including VeriShield Protect end-to-end encryption, which protects cardholder data throughout merchant and processor systems.
The business will focus on sales, consulting and implementation of VeriShield Protect and VeriShield Retain and future initiatives are aimed at helping retailers and processors protect consumer data. VeriFone also plans to focus on reducing the complexities and costs of PCI compliance.
Based in San Jose, California, VeriFone designs, markets and services a transaction automation system that facilitates electronic payments between consumers, merchants and financial institutions.
Earlier, Verfione doubled its investment in the security technology developer Semtel Corp. and announced that it will become the lead investor in a Series B financing of Semtek. Additionally, VeriFone and Semtek entered into a worldwide distribution agreement which allows VeriFone to license Semtek encryption technology to all other point-of-sale hardware vendors. Semtek is the developer of encryption technology that is the core element of VeriFone’s VeriShield Protect end-to-end encryption solution for securing cardholder data.
The company is all set to gear up and expand its business as capital spending improves in the second half of 2009. In particular, business in Asia continues to hold well.
Last month, the company reported better-than-expected results for the third quarter as profitability improved due to reduction in inventory charges. Management added that business has recovered in both domestic and international markets. Although there are signs of the economy bottoming out, recovery is going to slacken and revenue growth will be challenging. We would like to be on the sidelines given the continued near-term uncertainty.
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