NEW YORK (TheStreet) -- Shares of VeriFone Systems (PAY) are soaring, up 5.82% to $35.12 in early market trading Wednesday after the company said that its client list now includes coffee chain Starbucks (SBUX) - Get Report during its first quarter earnings call late yesterday.

VeriFone CEO Paul Galant noted that VeriFone is selling a pin pad that can accept Europay, MasterCard (MA) - Get Report and Visa (V) - Get Report, allowing the customer to put in the code for their debit card, which is a lower price point than a fully functioning terminal. 

Galant also hinted at the possibility of Starbucks growing from pin pads to an expanded system deployment.

The stock initially fell following the release of its disappointing second quarter and the full year outlook, despite its first quarter earnings beat.

The company said that it expects to earn between 41 cents to 42 cents per share in the second quarter, on revenue of between $485 million to $489 million. Analysts on average are expecting the company to report earnings of 45 cents per share on revenue of $506 million.

VeriFone did however report a strong first quarter with earnings of 44 cents a share, on revenue of $486 million. Both figures topped analysts' forecasts of 41 cents a share on revenue of $483.7 million.

San Jose, CA-based VeriFone is engaged in the secure electronic payment solutions for the financial, retail, hospitality, petroleum, transportation, government, and healthcare vertical markets. 

Separately, TheStreet Ratings team rates VERIFONE SYSTEMS INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate VERIFONE SYSTEMS INC (PAY) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall." You can view the full analysis from the report here: PAY Ratings Report

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