VeriFone Systems Inc (PAY) posted a net income of $26.9 million or 24 cents in the fourth quarter of 2012 compared with a net income of $37.7 million or 34 cents per share in the third quarter of 2012 and $198.8 million or $1.94 per diluted share in the year-ago quarter.

Excluding one-time charges but including stock-based compensation expenses, net income came in at 66 cents per share, missing the Zacks Consensus Estimate by a penny.

Revenues

VeriFone reported revenues of $485 million, almost flat sequentially and up 18.0% year over year.

Excluding amortization of step-down in deferred revenue on acquisition, revenues came in at $489 million, essentially flat on a sequential basis and up 17.5% annually. Revenues, however, were below management’s guidance of $495 million – $500 million.

Organic revenues, which exclude net revenues from businesses acquired in the past 12 months, grew 4% from the year-ago quarter. North America revenues grew 22% organically as the company’s investments in new technology and solutions over the past 2 years are beginning to pay off.

International revenues declined 3% organically as core demand remained strong across all geographies except Brazil.

On a segment basis, System Solutions generated revenues of $335.7 million, up 5.2% year over year. Services revenues shot up 63.6% year over year to $149.7 million.

In 2012, net revenues came in at $1.866, up 43% year over year. Excluding amortization, revenues came in at $1.866 billion, up 44% year over year.

Latin America revenues declined 24% year over year. In Europe, the Middle East and Africa, revenues increased 36% year over year and 1% organically. Point contributed revenues of $58 million to the top line. Asia recorded 32% year-over-year growth.

VeriFone has integrated both Point and Hypercom units into its operations smoothly. On January 4, 2012, VeriFone completed the acquisition of Point, one of Northern Europe’s largest providers of payment and gateway services and solutions for retailers.

Based in Stockholm, Sweden, Point provides payment and gateway services and solutions for retailers in Northern Europe. Founded in 1988, the company has operations in 11 Northern European countries and currently serves a captive network with over 475,000 merchants. Nordic Capital acquired Point in 2004.

The company continues to bundle encryption services, content and advertising, gateway services, e-commerce capabilities and cloud-based retail application processing, which provides it with an edge over other competitors. VeriFone has begun the process of rolling out Point’s payment as-a-service offering beyond Point's traditional markets.