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VeriFone Shares Rise on CEO Departure

He will remain the company's biggest shareholder


verifone pin pad 630Shares of Verifone (NYSE:PAY) surged more than 6% in Tuesday morning trading after the company ousted its CEO in the wake of poor second-quarter results.

Douglas Bergeron stepped down after the company missed Wall Street forecasts for its quarterly earnings. The company’s board decided to replace him last week, Bloomberg noted.

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The company has begun looking for a successor. Until a replacement CEO is named, Verifone’s chairman, Richard McGinn will assume the chief executive’s duties.

Bergeron is Verifone’s largest shareholder. He is, however, resigning from the company’s board. He said he remained bullish on the company, but conceded that the latest results had been disappointing.

Weak sales of its credit and debit card machines in Europe and Brazil, coupled with delayed revenue from Africa and the Middle East helped push down earnings for the quarter.

Earlier this month, Groupon (NASDAQ:GRPN) dismissed its founder and CEO Andrew Mason after reporting weak quarterly results.

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