Gemalto Reports First Semester 2012 Results

Gemalto announced its results for the first semester of 2012. Revenue for the first semester was up by 10% at historical rates and 7% at constant rates to €1,020 million, with all main segments posting growth. The Security segment performed particularly well, with revenue growth of 19% at constant exchange rates. Platforms & Services 1 revenue expanded across the company by 12% to reach €140 million for the semester, representing 14% of total company revenue.

Gross profit was up 21%, or €66 million, to €387 million. This represents a gross margin of 38%, higher by 3.4 percentage points on the previous year’s figure. The improvement was driven by gross margin increases in the Mobile Communication and Secure Transactions segments as well as by the revenue growth in Security. Better revenue mix, economies of scale and operational improvements underpinned the favorable trends observed in these activities.

“During this semester our teams delivered milestone projects in the digital identity and mobile payment sectors around the world,” Olivier Piou, CEO, commented:. “Gemalto achieved strong results that illustrate its transformation and the benefits of its strategy of innovation in the rapidly-expanding digital security market. We are determined to continue growing our revenue as planned, leveraging our improved business mix and continuing to invest in our new offers. Gemalto will now strive to reach its long-standing 2013 ambition of delivering €300 million in yearly profit from operations one year in advance.”

For the full year 2012, Gemalto now expects its profit from operations to come close to its 2013 target of €300 million, with all main segments increasing their revenue and profit, limited revenue from Patents, and less seasonality in Mobile Communication.