Verifone is taking a beating because of the slow adoption of EMV cards by businesses, and its latest quarterly results show that, CNBC's Jim Cramer said Wednesday.
"This has to do with the slow adoption of your chip-and-pin card, the EMV. Retailers do not like it," Cramer said on "Squawk on the Street." "The conference call was very bleak. They don't know when adoption is going to be … but they were ready, and I feel really badly."
The firm reported adjusted fiscal second-quarter earnings of 47 cents per share on revenue of $526 million. Analysts polled by Reuters expected the company to report earnings per share of 52 cents on revenue of $530.1 million. The company also lowered its full-year guidance and said it will reduce headcount to mitigate the damage.
"Q2 was a mixed quarter for Verifone as we grew our business, but experienced several difficult market dynamics," CEO Paul Galant said in a statement.
Verifone shares plummeted 24 percent on Wednesday. Over the past year, Verifone has lost over 42 percent.
PAY 12-month chart
Source: FactSet
Disclosure: Cramer's trust did not own Verifone stock when this story was published.