Gemalto Q3/2009 down by 4%
Gemalto also provides figures according to a geographical split:
Revenue for the first nine months of the year was EUR 1 201 million, essentially unchanged when compared with the previous year. Gemalto’s net cash position was EUR 347 million at the end of Q3/2009, compared with EUR 322 million at June 30, 2009.
Olivier Piou, Gemalto CEO, said “Thanks to our continuous improvement in operating efficiency we are confident in our ability to expand our adjusted operating income to around EUR 180 million for the full year. …As we accomplish our 2006-2009 long-range plan, focused on margin improvement and establishing a solid foundation for our future, we are now ready for our next phase of development”
Gemalto considers its business has strong fundamentals and prospects. The company expects market seasonality in 2009 to be in line with historical patterns, and reaffirms its 2009 objective of above 10% adjusted operating margin.
For the fourth quarter in a row, mobile communication sales, representing more than 54% of the company’s global sales, are decreasing on a year on year basis. However, software and services revenue increased by 6% year-on-year. The SIM card average selling price (ASP) decreased by 4% from previous quarter. However, the product mix deteriorated as mobile operators’ customer churn remained high in emerging countries, driving SIM renewal and deliveries of entry- and mid-range products. The quarter’s ASP was 18% lower than last year as seasonal demand from higher-end regions, notably in the Americas, was comparatively lower this quarter than at the same period of last year.
Gemalto experienced lower demand in parts of Central Europe and the Americas. Its deliveries of older static data authentication (SDA) and Pay-TV products were significantly lower while shipments of more secure dynamic data authentication (DDA) products and deployments of dual-interface contactless cards in Europe and Asia remained strong.
Government Programs revenue grew by 4% during the period, with double digit growth in EMEA and Asia offset by low demand in the Americas Identity and Access Management (IAM) revenue lowered by 18% on the back of weak enterprises demand, while online banking solutions sales were stable compared with previous year.
Gemalto attributes most of the growth in this segment to its POS terminals activity.