Gemalto First Half 2011 Results

August 24, 2011 06:01 PM Eastern Daylight Time 

• Revenue at €928 million increases by 14%, with 21% growth in Secure Transactions
• Profit from ongoing operations at €72 million increases by 8%, and by 35% in the main segments¹
• Secure Transactions and Security expand to generate more than half of this profit

AMSTERDAM--(BUSINESS WIRE)--Regulatory News:

“Profit (loss) from discontinued operation (net of income tax)”

Gemalto (PARIS:GTO)

All figures in this press release are unaudited. The income statement is presented on an adjusted basis (see page 2 “Basis of preparation of financial information”). These non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable IFRS measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with IFRS. The reconciliation with the IFRS income statement is presented in Appendix3. The balance sheet is prepared in accordance with IFRS, and the cash position variation schedule is derived from the IFRS cash flow statement.

Gemalto (Euronext NL0000400653 - GTO), the world leader in digital security today announces its results for the first half of 2011.

Key figures of the adjusted income statement

		First Half 2011		First Half 2010
		€ in millions		€ in millions		Year-on-year variation at historical exchange rates
Ongoing operations
Revenue		928		815		+14%
Gross profit		321		292		+10%
Operating expenses		249		225		+11%
Profit from operations		72		67		+8%
Profit from other operations (JV deconsolidation gain)		21		0		n.c.

Olivier Piou, Chief Executive Officer, commented: “Our four main segments generated 16% revenue growth and 35% profit expansion. These results evidence Gemalto’s strong progress along its strategic plan, which combines organic growth with bolt-on acquisitions. Secure Transactions stood out, with 21% revenue growth and double-digit profit margin. Security also recorded double-digit revenue growth and increased profit margin. We continued to invest in our new mobile offerings and as a result, we expect Mobile Communication to return to year-on-year profit expansion for the second semester. The sustainable and wider adoption of the EMV standard and dual interface contactless cards further adds to our confidence in delivering on the € 300 million profit from operations target we have set for ourselves in 2013.”

¹ The main segments include the Mobile Communication, Machine-to-Machine, Secure Transactions, and Security business segments representing close to 100% of the semester’s Company revenue; i.e. they exclude the Patents segment which accounted for € 2.6 million revenue in H1 2011 and €16 million revenue in H1 2010.

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