• Profit will be $1.64 to $1.65 a share. Previous outlook: $1.85
• ‘Difficult but temporary’ market, EMV issues, CEO Galant Says

VeriFone Systems Inc., one of the world’s largest makers of credit card and electronic-payment hardware, tumbled Friday after cutting its full-year profit and sales forecasts for a second straight quarter on weakening demand.Fiscal 2016 earnings will be $1.64 to $1.65 a share, excluding some items, down from a June forecast of $1.85, San Jose, California-based VeriFone said Thursday in a statement. Sales will be $2 billion, compared with its June outlook of $2.1 billion. The shares fell 18 percent to $16.57 at 9:47 a.m. in New York and are down about 40 percent this year. Exclusive insights on technology around the world. Get Fully Charged, from Bloomberg Technology. BusinessYour guide to the most important business stories of the day, every day. You will now receive the Business newsletter PoliticsThe latest political news, analysis, charts, and dispatches from Washington. You will now receive the Politics newsletter MarketsThe most important market news of the day. So you can sleep an extra five minutes. You will now receive the Markets newsletter PursuitsWhat to eat, drink, wear and drive – in real life and your dreams. You will now receive the Pursuits newsletter Game PlanThe school, work and life hacks you need to get ahead. You will now receive the Game Plan newsletter VeriFone had reaped benefits from the U.S.’s shift to terminals that accept credit and debit cards with embedded digital chips, but now many large merchants have already made the switch, and smaller merchants are delaying purchases. And some merchants that bought VeriFone hardware haven’t been able to turn their machines on, because of delays in getting them certified. Those delays have impacted the company’s service revenues.“We are managing through what we believe are difficult but temporary local market and lingering EMV adoption issues, ” Chief Executive Officer Paul Galant said in the statement, using the industry term for chip-card technology. VeriFone also cited macroeconomic and political issues in Turkey and Latin America among its challenges.In June, the shares slid the most in more than three years after the company cut its outlook for full-year earnings by as much as 17 percent.“The factors dragging results down appear to be temporary, but they are now unlikely to reverse until 2018, ” said Gil Luria, an analyst at Wedbush Securities Inc.

• Profit excluding some items of 42 cents a share in the third quarter ended July 31 topped the 40-cent average of estimates compiled by Bloomberg. Sales of $493 million fell short of the $515.8 million average projection.
• VeriFone forecast fourth-quarter profit of 28 cents to 29 cents a share. That compares with the 50-cent average of estimates.