2007'02.11.Sun
Gemalto Reports Third Quarter 2006 Revenue(1)
October 26, 2006
-- Third Quarter Revenue at EUR 390 Million, Down 8% at
Constant Exchange
Rates, as Market Environment Remains Difficult in
Mobile Communication
-- Year-to-date Pro Forma Revenue at EUR1,237 Million,
1% Lower Than Last
Year at Constant Exchange Rates, and Stable at
Current Exchange Rates
-- Deployments of Electronic Passports Projects Lead to
20% Growth in ID &
Security in the Third Quarter 2006 at Constant
Exchange Rates
AMSTERDAM, Oct. 26 /Xinhua-PRNewswire/ --
- Strong Improvement in Net Cash, up EUR42 Million, to
EUR385 Million
- Integration Program and Synergy Generation Well
On-Track
Gemalto (Euronext NL0000400653 - GTO), a leader in
digital security, today announced its revenue for the
quarter ended September 30, 2006.
In millions Q3 06 Year-on- Year-on- YTD 06
Year-on- Year-on
of euros year year Pro
year year
change at change at forma
change at change at
historical constant
historical constant
exchange exchange
exchange exchange
rates rates
rates rates
Mobile 230.4 -14% -12% 721.2
-8% -9%
Communication
Secure 93.0 -5% -4% 284.3
+8% +8%
transactions
ID & Security 42.2 +19% +20%
148.8 +56% +55%
Public 13.6 -24% -21% 46.5
-11% -12%
Telephony
Point of 11.3 -31% -29% 36.1
-21% -21%
Sales
Terminals
Total revenue 390.5 -10% -8% 1,236.9
0% -1%
Olivier Piou, Chief Executive Officer, commented:
"Market demand for Gemalto products and services
remained strong in our major business segments. However,
price pressure particularly in Mobile Communication
eliminated revenue growth for the quarter and year to date.
We continue to see significant strength in our ID &
Security segment, which turned in another strong quarter
and secured several new e-passport projects.
Our merger integration program is moving ahead, on
target and on schedule. The integration process has
validated the net synergies we anticipated at the outset,
and revealed additional opportunities that we are
implementing. The markets we serve are dynamic and we are
fully committed to making the adjustments needed to ensure
that we remain in line with our long-term
objectives."
Third quarter 2006 and year-to-date pro forma revenue
impacted by a difficult market environment in Mobile
Communication
Microprocessor card deliveries(2) grew 31% to 281
million units in the third quarter 2006, sustained by
strong demand in all core business segments. Year-to-date,
deliveries were up 34% to 826 million units.
Third quarter total revenue was down 8%, at constant
exchange rates, reflecting varying performance between
business segments. Strong growth in Identity & Security
was offset by lower revenue in Mobile Communication, a
remnant of strong average selling price decrease in the
first quarter.
On a pro forma basis, year-to-date revenue was stable.
After adjusting for the Setec acquisition, revenue was down
3% year-to-date at constant exchange rates.
Third quarter 2006 segment analysis
Mobile Communication performance reflects the strong
ASP decline incurred earlier in the year and a shift in
geographical mix
In millions of 2005 2006 Year-on-year change
Year-on-year change
euros Pro Pro at historical
at constant
forma forma exchange rates
exchange rates
Third quarter 267.8 230.4 -14%
-12%
revenue
Year-to-date 784.7 721.2 - 8%
-9%
revenue
Strong unit volume growth in SIM cards did not offset
the effect of the decrease in the average selling price:
- Deliveries for the third quarter 2006 were up 34%
year-on-year to 219
million units, driven by strong demand in Asia and in
EMEA(3), notably in
Eastern Europe, the Middle East and Africa. Lower
sales in the Americas
reflect a slowdown in new subscriber additions as
well as price competition.
- Average selling price for the third quarter 2006 was
down 32% year on
year, at constant exchange rates, mainly due to the
strong competitive
price pressure during the first quarter and a shift
in the geographic
mix. Compared with the second quarter 2006, average
selling price was
down 3.9%, at constant exchange rates.
In the quarter, Gemalto's digital security leadership
and high end application expertise were rewarded:
- The Group was selected to supply high-end products,
consulting services
and project management for two nationwide mobile TV
rollouts.
- The Company Over-The-Air personal information and
phonebook
synchronization applications continued to receive
strong interest from
network operators and are generating new value-added
services revenue
in the Americas.
Secure Transactions posted a slight decline due to
slower EMV(4) revenue in Europe
In millions of 2005 2006 Year-on-year
Year-on-year
euros Pro forma Pro forma change at
change at
historical
constant
exchange rates
exchange rates
Third quarter 97.9 93.0 -5%
-4%
revenue
Year-to-date 262.3 284.3 +8%
+8%
revenue
Microprocessor card deliveries for the third quarter
2006 were up 11% to 52 million units, driven by on-going
EMV deployment, particularly in Turkey, Latin America and
North Asia. Volumes were slightly down in EMEA reflecting
completion of the initial EMV migration in the United
Kingdom and delays in EMV rollouts in Southern Europe.
Revenue was also impacted by price pressure in mature
markets.
Contactless payment activity has now moved beyond the
United States to Asia, where Gemalto achieved strong
recognition and growth. The Group is also supplying
technology for several pilot projects in Asia and in
Europe.
Excellent performance in ID & Security
In millions of 2005 2006 Year-on-year
Year-on-year
euros Pro forma Pro forma change at
change at
historical
constant
exchange rates
exchange rates
Third quarter 35.6 42.2 +19%
+20%
revenue
Year-to-date 95.2 148.8 +56%
+55%
revenue
Revenue growth was driven by deliveries of e-passports
solutions, including initial deployments of large scale
programs in France and Poland.
Gemalto received initial orders in the third quarter
for e-passports solutions from the USA, Poland and
Slovenia, adding several meaningful and highly visible
contracts to those awarded earlier this year in France, the
Czech Republic, Portugal and Russia.
Gemalto technology was also selected in the second
phase of the Sultanate of Oman e-government program.
Gemalto will provide an update of the Registration System,
integration services, and 2.5 million high-end smart ID
cards to offer additional e-government services to the
population of the Sultanate.
Point-of-Sale Terminals
Slower activity in this segment reflects delays earlier
this year in tender awards in Asia a transition to a new
range of products scheduled for introduction later in the
fourth quarter 2006.
Regional analysis
Third quarter revenue by region
In millions of Q3 05 Q3 06 % change at
% change at
euros Pro forma historical
constant
exchange rates
exchange rates
EMEA 227.4 215.6 -5%
-4%
North & South 128.3 92.3 -28%
-26%
America
Asia 79.7 82.6 +4%
+8%
Total revenue 435.4 390.5 -10%
-8%
Regional analysis shows a substantial shift in revenue
contribution by region: Asia accounted for 21% of third
quarter 2006 revenue compared with 18% a year ago. Revenue
growth in this area was driven by Secure Transactions and
Mobile Communication. In EMEA, remarkable growth in ID
& Security was offset by lower revenue in Mobile
Communication and Secure Transactions. The Americas sharply
lower contribution to total revenue reflects the much lower
market demand for Mobile Communication products, while
Secure Transactions recorded strong growth over last year
in Latin America, building solid positions around the EMV
deployments.
Outlook
The third quarter market environment proved
challenging, and the Company expects an improvement in the
fourth quarter. With synergies from the combination
materializing progressively, in line with plans, and the
significant resources required this year to converge
product roadmaps and processes, Gemalto continues to expect
operating margin in the second half 2006 to be similar to
that of the first half.
The Group is confident in its ability to play a leading
role in the global development of digital security. It has
taken cost reduction measures beyond the initially
identified synergies, and continues to adapt to match the
changing needs of the marketplace. Management is determined
to ensure that Gemalto meets its long term objective of an
operating margin in the low teens in 2009.
Conference call
The company has scheduled a conference call for
Thursday, October 26, 2006 at 2:30 pm CET (1:30 pm BST and
8:30 am New-York time). Callers may participate in the live
conference call by dialling:
+44(0)207-365-1836 or +1-718-354-1158 or
+33-1-70-99-42-72.
The slide show will be available on the web site at
12:00 CET (11:00 BST).
Replays of the conference call will be available
approximately 3 hours after the conclusion of the
conference call until November 2, 2006 midnight by
dialling:
+44(0)207-806-1970 or +1-718-354-11-12 or
+33-1-71-23-02-48, access code: 2104153.
Earnings calendar
Full year 2006 revenue is scheduled to be reported on
February 1, 2007, before the opening of Euronext Paris.
The schedule for the announcement of fiscal year 2006
results will be communicated on February 1, 2007.
About Gemalto
Gemalto (Euronext NL 0000400653 GTO) is a leader in
digital security with pro forma 2005 annual revenues of
$2.2 billion (EUR1.7 billion), operations in 120 countries
and 11,000 employees including 1,500 R&D engineers. The
company's solutions make personal digital interactions
secure and easy in a world where everything of value - from
money to identities - is represented as information
communicated over networks.
Gemalto thrives on creating and deploying secure
platforms, portable and secure forms of software in highly
personal objects like smart cards, SIMs, e-passports,
readers and tokens. More than a billion people worldwide
use the company's products and services for
telecommunications, banking, e-government, identity
management, multimedia digital right management, IT
security and other applications. Gemalto was formed in June
2006 by the combination of Axalto and Gemplus.
For more information please visit
http://www.gemalto.com
APPENDIX
Revenue breakdown by business segment
In millions of Q3 05 As a % Q3 06 As a % YTD 05 As
a % YTD 06 As a %
euros of of
of of
Pro total total Pro forma
total Pro total
forma
forma
Mobile 267.8 62% 230.4 59% 784.7
63% 721.2 58%
Communication
Secure 97.9 22% 93.0 24% 262.3
21% 284.3 23%
transactions
ID & Security 35.6 8% 42.2 11% 95.2
8% 148.8 12%
Public Telephony 17.8 4% 13.6 3% 52.1
4% 46.5 4%
Point of Sales 16.3 4% 11.3 3% 45.8
4% 36.1 3%
Terminals
Total revenue 435.4 100.0% 390.5 100.0% 1,240.1
100.0% 1,236.9 100.0%
First quarter revenue by business segment
In millions of Q1 05 Q1 06 % change at
% change at
euros Pro forma Pro forma historical
constant
exchange rates
exchange rates
Mobile 236.7 229.9 -3%
-8%
Communication
Secure transactions 71.9 91.4 +27%
+25%
ID & Security 22.6 53.2 +135%
+127%
Public Telephony 17.8 17.9 +1%
-4%
Point of Sales 15.7 13.8 -12%
-14%
Terminals
Total revenue 364.7 406.2 +11%
+7%
Second quarter revenue by business segment
In millions of Q2 05 Q2 06 % change at
% change at
euros Pro forma Pro forma historical
constant
exchange rates
exchange rates
Mobile 280.3 260.8 -7%
-8%
Communication
Secure transactions 92.5 99.9 +8%
+7%
ID & Security 36.9 53.4 +45%
+44%
Public Telephony 16.5 15.0 -9%
-11%
Point of Sales 13.9 11.0 -20%
-21%
Terminals
Total revenue 440.0 440.1 0%
-1%
Year-to-date revenue by region
In millions of YTD 05 YTD 06 % change at
% change at
euros Pro forma Pro forma historical
constant
exchange rates
exchange rates
EMEA 651.7 665.0 +2%
+2%
North & South 340.1 304.3 -11%
-13%
America
Asia 248.2 267.6 +8%
+6%
Total revenue 1,240.1 1,236.9 0%
-1%
In the first half 2006 earnings release, the Company
presented additional financial information on an adjusted
pro forma basis which was prepared in US dollars. The
adjusted pro forma information of the corresponding periods
have been prepared assuming that the combination with
Gemplus had taken place as of January 1, 2005, and
excluding charges arising from the accounting treatment of
the transaction and one-off expenses incurred in connection
with the combination with Gemplus. This adjusted pro forma
information is presented below in euros for the six month
periods ended June 30, 2005, June 30, 2006 and December 31,
2005.
For a more detailed description of the basis of
preparation of this adjusted pro forma information, please
refer to EXPLANATION OF ADJUSTED AND PRO FORMA MEASURES at
the end of the first half 2006 earnings press release.
Gemalto adjusted* pro forma income statement
(assuming the combination was executed on January 1,
2005)
All amounts in euro thousands (except where otherwise
stated)
Six months ended
30-Jun-05 31-Dec-05
30-Jun-06
Sales 804,750 919,659
846,312
Cost of sales (541,434) (623,593)
(590,343)
Gross profit 263,316 296,066
255,969
Gross margin 32.7% 32.2%
30.2%
Operating expenses:
Research and engineering (55,763) (60,760)
(59,388)
Sales and marketing (97,767) (109,545)
(108,469)
General and administrative (52,273) (62,108)
(57,183)
Other income, net 2,214 1,397
(128)
Operating income 59,728 65,051
30,801
Operating margin 7.4% 7.1%
3.6%
Financial income (expenses), net 2,069 2,535
5,720
Share of profit (losses) of
associates (990) 1,426
271
Profit before income tax 60,806 69,012
36,792
Income tax expense (10,928) 14,024
(2,408)
Profit for the period 49,879 83,035
34,385
Attributable :
Equity holders of the company 31,586 46,935
16,399
Minority interest 18,292 36,100
17,986
Basic earnings per share
(in euros) 0.51 0.75
0.26
In thousands:
Basic average number of shares
outstanding 62,425 62,316
62,399
* excluding one-off expenses incurred in connection
with the combination with Gemplus and charges resulting
from the accounting treatment of the transaction
DISCLAIMER
The Gemalto N.V. securities referred to herein issued
in connection with the exchange offer of Gemalto N.V. for
the securities of Gemplus International S.A., and the
Gemalto N.V. shares issued in connection with the reopening
of such exchange offer, have not been (and are not intended
to be) registered under the United States Securities Act of
1933, as amended, (the "Securities Act") and may
not be offered or sold, directly or indirectly, into the
United States except pursuant to an applicable exemption.
The Gemalto securities have been and will be made available
within the United States in connection with the exchange
offer pursuant to an exemption from the registration
requirements of the Securities Act.
The exchange offer and its reopening relate to the
securities of a non-US company and are subject to
disclosure requirements of a foreign country that are
different from those of the United States. Financial
statements presented have been prepared in accordance with
foreign accounting standards that may not be comparable to
the financial statements of United States companies.
It may be difficult for an investor to enforce its
rights and any claim it may have arising under U.S. federal
securities laws, since Gemalto N.V. and Gemplus
International S.A. have their corporate headquarters
outside of the United States, and some or all of their
officers and directors may be residents of foreign
countries. An investor may not be able to sue a foreign
company or its officers or directors in a foreign court for
violations of the U.S. securities laws. It may be difficult
to compel a foreign company and its affiliates to subject
themselves to a U.S. court's judgment.
This release does not constitute an offer to purchase
or exchange or the solicitation of an offer to sell or
exchange any securities of Gemalto N.V. or an offer to sell
or exchange or the solicitation of an offer to buy or
exchange any securities of Gemplus International S.A.
Gemplus security holders are strongly advised to read
the offering circular relating to the exchange offer and
related exchange offer materials regarding the transaction
(see below), as well as any amendments and supplements to
those documents because they contain important
information.
The exchange offer and its reopening described herein
are not (and are note intended to be) made, directly or
indirectly, in or into the United Kingdom, Italy, the
Netherlands, Canada or Japan or in or into any other
jurisdiction in which such offer would be unlawful prior to
the registration or qualification under the laws of such
jurisdiction. Accordingly, persons who come into possession
of this release should inform themselves of and observe
these restrictions.
Copies of the free English translation of the joint
French language offering document which has received visa
No. 06-252 of July 6, 2006 from the French Autorite des
marches financiers and of the documents incorporated by
reference thereto are available from the Internet websites
of Gemalto N.V. ( http://www.gemalto.com ) and of Gemplus
International S.A. ( http://www.gemplus.com ) as well as
free of charge upon request to the following: Gemalto N.V.:
Koningsgracht Gebouw 1, Joop Geesinkweg 541-542, 1096 AX
Amsterdam, the Netherlands;
Gemplus International S.A.: 46A, avenue J.F. Kennedy,
L-1855 Luxembourg, Grand Duchy of Luxembourg; Mellon
Investor Services LLC, U.S. Exchange Agent: 480 Washington
Boulevard, Attn: Information Agent Group,AIM # 074-2800,
Jersey City, New Jersey 07310, Call Toll Free:
1-866-768-4951.
(1) Third quarter 2005, year-to-date 2005 and
year-to-date 2006 revenue
provided in this press release are on a pro forma
basis, reflecting
the combined activity of Gemalto and Gemplus over
the corresponding
period, assuming that the combination had taken
place as of January
1, 2005.
(2) Deliveries reported in the first half 2006 earnings
release included
some contactless memory cards in Secure
Transactions and ID &
Security: actual microprocessor card deliveries in
the first half 2006
was 545 million units of which 97 million units in
Secure Transactions
(3) Europe, Middle East, Africa
(4) EMV is a jointly defined set of specifications
dedicated to payment
safety improvement, adopted by Europay, MasterCard
and Visa for the
migration of bank cards to microprocessor card
technology.
For more information, please contact:
Emmanuelle Saby, M.
Corporate Media Relations
Tel: +336-09-10-76-10
Email: emmanuelle.saby@gemalto.com
Remi Calvet, M.
Corporate Communication
Tel: +336-22-72-81-58
Email: remi.calvet@gemalto.com
Stephane Bisseuil
Investors Relations
Tel: +331-55-01-50-97
Email: stephane.bisseuil@gemalto.com
FINEO
Tel: +331-56-33-32-31
SOURCE Gemalto
PR
Post your Comment
広告
ブログ内検索
アーカイブ
カウンター