Ingenico grows 28%
Ingenico demonstrates its adjusted operating margin reached 13.9% in H2/2008. At the end of 2008, the company had a net cash position of EUR 77.5 million. Philippe Lazare, Ingenico’s CEO, commented: “2008 was a year of transformation for Ingenico. First, we consolidated our leadership with the successful integration of Sagem Monetel and Landi. Secondly, we launched new innovative products well received by our customers and prospects. Finally, we launched our new business approach on ‘beyond payment’ services”
The Company continued to grow and increased revenue by 7% in 2008 over 2007, which is an excellent performance as this revenue increase includes, as expected, a decrease of approximately EUR 20 million revenue due to the effect of commercial overlaps resulting from the merger of Sagem Monetel activities with Ingenico. Adjusted gross margin amounted to EUR 279.4 million in 2008, as compared to EUR 208.2 million in 2007. Adjusted gross margin represented 38.4% of revenue in 2008 against 36.6% in 2007. This result was due to first purchasing gains related to the integration of Sagem Monetel combined with continued margin improvements in “Software and Services”
Net result amounted to EUR 36.7 million in 2008, as against EUR 39.5 million in 2007. In 2008, net result decreased because of the combined impact of price purchase allocation (Planet, Sagem Monetel and Landi) and restructuring costs. Excluding impact of price purchase allocation and restructuring costs, net result would have amounted for EUR 55.7 million in 2008 compared to EUR 45.2 million in 2007, a 23% increase.
Ingenico expects a low commercial performance in Q1/2009 balanced by a strong sequential growth in Q2/2009. Ingenico believes that the launch of new innovative terminals in H2/2009 along with the ramp up of “beyond payment” services which are very well received by its prospects are opportunities to support growth in the second half of 2009.
In today’s challenging market conditions, Ingenico’s management is clearly putting high priority to preserving cash and profitability. Management is focusing on accelerating impact of synergies and driving cost efficiencies, as well as continuing to conservatively control cash requirements. Finally, Ingenico believes that its balanced geographical presence, the contribution of new economies in revenue growth, as well as the launch of innovative terminals and services are key differentiators in today’s environment. Ingenico also believes that its business model is resilient and that its flexible fabless organization and its strong balance sheet are extremely valuable in today’s challenging market conditions. Considering the above trends, the Company anticipates pro forma revenue to be at minimum stable in 2009 and which could grow up to 5%. Adjusted operating margin objective is expected to be between 12.5% and 13.5% in 2009.