EX-12.1 4 f43425orexv12w1.htm EXHIBIT 12.1 exv12w1
Exhibit 12.1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Exhibit
VeriFone Holdings, Inc. and Subsidiaries
Computation of Ratio of Earnings to Fixed Charges
(in thousands)
                                                 
                                            Nine months
                                            ended
    2003   2004   2005   2006   2007   July 30, 2008
Earnings as defined:
                                                
Pretax income before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees
     12,537       10,577       46,608       91,536       (9,436 )     (44,485 )
Plus: amortization of capitalized interest
     —       —       —       —       —       39  
Plus: fixed charges, as below
     13,922       14,012       17,082       15,377       39,415       24,696  
Less: capitalized interest
     —       —       —       —       355       —  
 
                                                
Total earnings, as defined
     26,459       24,589       63,690       106,913       29,624       (19,750 )
 
                                                
Fixed charges, as defined:
                                                
Interest on long-term and short-term debt
     12,456       12,597       15,384       13,617       36,598       21,877  
Amortization of debt issuance costs
     1,010       945       1,150       1,105       1,756       1,965  
Interest factor on rental expense (1)
     456       470       548       655       1,061       854  
 
                                                
Subtotal
     13,922       14,012       17,082       15,377       39,415       24,696  
 
                                                
Ratio of Earnings to Fixed Charges (2)
     1.901       1.755       3.728       6.953       0.752       (0.800 )
 
(1)   Represents the estimate of the interest within rental expense. This amount includes approximately 7 percent of the rental expense, which the Registrant believes is a reasonable approximation of the interest component of rental expense.
 
(2)   Earnings for the nine months ended July 30, 2008, were inadequate to cover fixed charges. The coverage deficiency was approximately $44.4 million.