VeriFone names new CFO to oversee corrected books

SAN JOSE, Calif.—VeriFone Holdings Inc. on Tuesday appointed Clinton Knowles as its interim chief financial officer while the maker of payment processing equipment tries to recover from an accounting debacle that has battered its stock.

Knowles, who has previously served as CFO at a variety of companies, replaces Barry Zwarenstein, who agreed to step down after the San Jose-based company uncovered a series of financial misstatements that exaggerated its profits during the first three quarters of its fiscal 2007.

The mess is currently under investigation by the Securities and Exchange Commission.

"Clinton's 35 years of finance experience will be helpful during this transition period," said VeriFone Chief Executive Office Douglas Bergeron. He said VeriFone is nearing a decision on a permanent CEO.

VeriFone corrected its books Tuesday by wiping out $70 million in previously reported profits for fiscal 2007.

Management also forecast its results for the final half of its current fiscal year will exceed analyst estimates, causing VeriFone's stock to soar $5.26, or 35.7 percent, in extended trading after finishing the regular session at $14.73, down 95 cents.

Even if the rally extends into Wednesday's trading, VeriFone's stock is likely to remain below its 52-week high of $50 reached last October, shortly before management announced the company's accounting trouble.