SAN JOSE, Calif. (AP) -- VeriFone Systems Inc., a leading maker of terminals for electronic payments, on Monday said its CEO is stepping down, after recent stumbles cut the company's stock price nearly in half.
Douglas Bergeron will leave on Tuesday after 12 years as CEO, and will be temporarily replaced by board chairman Richard McGinn. The San Jose, Calif., company is going to look for a permanent replacement.
Investors were cheered by the shakeup, sending VeriFone's stock up $1.71, or 8.4 percent, to $22.17 in extended trading.
The shares were trading above $32 less than a month ago, before VeriFone warned that earnings for the quarter that ended in January would be far below expectations. Last week, Bergeron said many of the troubles were "self-inflicted" and vowed strong measures, including possible executive changes.
In a conference call with analysts, Bergeron said VeriFone hadn't spent enough time and money tailoring its products to suit the needs of local merchants. He also cited poor execution by its sales staff.
"Now is the right time for new leadership to take the baton and continue to drive the company forward," Bergeron said in a statement Monday.
Verifone already has hired a new chief financial officer. Marc Rothman took the CFO job last month after leaving the same post at cellphone maker Motorola Mobility Holdings, which was acquired last year by Google Inc. for $12.4 billion.