Posted March 13, 2013 by Jake Emen in Technology

VeriFone Systems Inc (NYSE:PAY)’s Bergerson’s to step down- GRPN

Northern, WI 03/13/2013 (avauncer) - Douglas Bergeron the VeriFone Systems Inc (NYSE:PAY) CEO was dismissed in the wake of second-quarter missed profit estimates after demand for credit card has diminished. Richard McGinn the chairman of the company will be filling in the post as an interim CEO. A search committee has been formed by the board, the services of a search firm will be enlisted and candidates will be assessed to find a successor for the San Jose, California-based company. Leslie Denend will be the interim chairman. Soon after the announcement the company shares rose by 11 percent.

Two weeks-two industry ousters

Missed projections resulted in ex-CEO Andrew Mason’s ouster from Groupon Inc (NASDAQ:GRPN) just a couple of weeks ago and Bergeron’s exit is the second CEO exit in the U.S technology sector. He had been the CEO since 2011 and will now also be resigning from his director post. He said that the company had been very successful in transitioning from products to services but missing numbers is serious business for any company. VeriFone Systems Inc (NYSE:PAY) is involved in making terminals that accept debit and credit cards. These terminals are used at gas stations, retail stores, as well as in taxicabs.

Ex-CEO now cheerleader

The company has been flailing due to the Europe’s economic crisis, a deferred revenue-increase from its Middle East and African clients. Sales from customers in Brazil have been lower than what had been projected. Bergeron will continue to be the company’s largest individual shareholder but will now be cheering from outside the fence. He said that the company would continue with the same foreign markets strategy and will focus on services and that new leadership will lead to rejuvenation for the company.

Shares of VeriFone Systems Inc (NYSE:PAY) went up by 5.96% to close at $21.68

Shares of Groupon Inc (NASDAQ:GRPN) went down by 2.96% to close at $5.25

Jake Emen

Jake Emen is a writer residing in Houston, Texas. He has written numerous articles, some for the Washington Post, USA Today, the LA Times, and the Houston Chronicle. One of AC s Top 100 Content Producers, Carly Hart s interests include news, politics, parenting, frugal living and consumer related issues. He acted as a customer advocate and has extensive experience working on Wall Street. As a highly acclaimed industry leader, he has been a catalyst for public education and accessability of financial services.