Gemalto first quarter 2015 revenue
(Thomson Reuters ONE) -
* Revenue at ?686 million, up +29% at historical exchange rates and +19% at
constant exchange rates, with strong business growth and addition of SafeNet
* Growth came from all main segments and activities, with strong performance
in Machine-to-Machine and in Payment
* SafeNet acquisition well received by customers
Revenue variations are at constant exchange rates except where otherwise
noted.
All figures presented in this press release are unaudited.
Amsterdam, April 30, 2015 - Gemalto (Euronext NL0000400653 - GTO), the world
leader in digital security today announces its revenue for the first quarter of
2015.
Main segments Main activities
------------------ ------------------------ Patents &
First quarter Payment & Embedded Platforms & Others
2015 Total Identity Mobile software & Services
(? in millions) Products
------------------------ ------------------------------------------- ----------
Revenue 686 369 316 500 185 1
-------------------------------------------------------------------------------
Year-on-year
variation at +19% +35% +7% +8% +76% (93%)
constant
exchange rates
Year-on-year
variation at +29%
historical
exchange rates
Olivier Piou, Chief Executive Officer, commented: "The first quarter of 2015
leveraged the investments made, with significant expansion in our businesses.
Payment continued to grow vigorously, on-going deployments confirm the improving
momentum in Government Programs, and the strong expertise of the SafeNet team
complements well our offering. Performance in the Mobile segment was led by
excellent Machine-to-Machine growth and a solid SIM business. And we are focused
on delivering a steady progression towards our 2017 objectives."
Basis of preparation of financial information
Segment information
From January 1, 2014, segment information was modified to report on progress
towards the objectives set as part of the Company's new long-term development
plan covering the years 2014 to 2017, publicly announced on September 5, 2013.
The Mobile segment reports on businesses associated with mobile cellular
technologies including Machine-to-Machine, mobile secure elements (SIM, embedded
secure element) and mobile Platform & Services. The Payment & Identity segment
reports on businesses associated with secure personal interactions including
Payment, Government programs and Enterprise.
As of 2014, in addition to this segment information the Company also reports
revenues of Mobile and Payment & Identity by type of activity: Embedded software
& Products (E&P) and Platforms & Services (P&S).
Historical exchange rates and constant currency figures
The Company sells its products and services in a very large number of countries
and is commonly remunerated in other currencies than the Euro. Fluctuations in
these other currencies exchange rates against the Euro have in particular a
translation impact on the reported Euro value of the Company revenues.
Comparisons at constant exchange rates aim at eliminating the effect of
currencies translation movements on the analysis of the Group revenue by
translating prior-year revenues at the same average exchange rate as applied in
the current year. Revenue variations are at constant exchange rates and include
the impact of currencies variation protection hedges, except where otherwise
noted. All other figures in this press release are at historical exchange rates,
except where otherwise noted.
SafeNet acquisition and related pro forma figures
Following the acquisition of SafeNet and for a better understanding of the
current and future year-on-year evolution of the business, the Company presents
the 2014 Gemalto segment and activity pro forma figures as if SafeNet had been
consolidated for the full year 2014 period and year-on-year variations between
these 2014 pro forma figures and 2015 figures as if SafeNet had been
consolidated starting from January 1, 2015. The difference between 2015 actual
figures and 2015 pro forma figures corresponds to the SafeNet contribution from
January 1(st), 2015 to January 7(th), 2015, the actual transaction closing date.
SafeNet's pro forma figures used in this document were translated into Euro
using monthly currency conversion rates.
Adjusted income statement and profit from operation (PFO) non-GAAP measure
The consolidated financial statements are prepared in accordance with the
International Financial Reporting Standards (IFRS).
To better assess its past and future performance, the Company also prepares an
adjusted income statement where the key metric used to evaluate the business and
make operating decisions over the period 2010 to 2017 is the profit from
operations (PFO).
PFO is a non-GAAP measure defined as the IFRS operating result adjusted for the
amortization and depreciation of intangibles resulting from acquisitions, for
fair value adjustments over net assets acquired, for share-based compensation
charges, and for restructuring and acquisition-related expenses. These items are
further explained as follows:
* Amortization and depreciation of intangibles resulting from acquisitions are
defined as the amortization and depreciation expenses related to the
intangibles recognized as part of the allocation of the excess purchase
consideration over the share of net assets acquired.
* Fair value adjustments over net assets acquired are defined as the reversal,
in the income statement, of the fair value adjustments recognized as a
result of a business combination, as prescribed by IFRS3R. Those adjustments
are mainly associated with (i) the amortization expense related to the step-
up of the acquired work-in-progress and finished goods assumed at their
realizable value and (ii) the amortization of the cancelled commercial
margin related to deferred revenue balance acquired
* Share-based compensation charges are defined as (i) the discount granted to
employees acquiring Gemalto shares under Gemalto Employee Stock Purchase
plans; (ii) the amortization of the fair value of stock options and
restricted share units granted by the Board of Directors to employees, and
other related costs.
* Restructuring and acquisitions-related expenses are defined as (i)
restructuring expenses which are the costs incurred in connection with a
restructuring as defined in accordance with the provisions of IAS 37 (e.g.
sale or termination of a business, closure of a plant,.), and consequent
costs; (ii) reorganization expenses defined as the costs incurred in
connection with headcount reductions, consolidation of manufacturing and
offices sites, as well as the rationalization and harmonization of the
product and service portfolio, and the integration of IT systems, consequent
to a business combination; and (iii) transaction costs (such as fees paid as
part of the acquisition process).
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.
In the adjusted income statement, Operating Expenses are defined as the sum of
Research and Engineering expenses, Sales and Marketing expenses, General and
Administrative expenses, and Other income (expense) net.
EBITDA is defined as PFO plus depreciation and amortization expenses, excluding
the above amortization and depreciation of intangibles resulting from
acquisitions.
General information
Main segments Main activities
-------------------- ------------------------- Patents
First quarter Payment Embedded Platforms &
2015 Total & Identity Mobile software & Services Others
(? in millions) & Products
----------------------- ---------------------------------------------- --------
Revenue 686 369 316 500 185 1
As a percentage
of total 100% 54% 46% 73% 27% 0%
revenue
-------------------------------------------------------------------------------
For the period, Company revenue was ?686 million. Revenue from the Payment &
Identity segment surpassed the Mobile segment for the first time in Company
history at ?369 million, representing 54% of total Company revenue.
Embedded software & Products grew by +8%, with strong activity linked to
Machine-to-Machine business and EMV payment cards. Platforms & Services
activities posted sales of ?185 million, an increase of +76% year-on-year. They
represented 27% of total Company revenue. Patents & Others brought a limited ?1
million contribution this quarter.
Total Company revenue of ?686 million was ?532 million for the first quarter
2014. Expansion came from the two main segments and from the integration of the
acquired SafeNet business. On a reported basis, total revenue grew by +29% at
historical rates, and by +19% at constant rates. The substantial strengthening
of the US dollar versus Euro compared to the first quarter of 2014 and the large
part of Company's US dollar denominated revenue explain the 10 percentage point
difference between revenue growth at historical rates and at constant rates. Due
to the large and rapid evolution of currencies during the quarter, the Company's
hedging program which aims at partially neutralizing the impact of sudden
currency variations on the profit from operations also had a significant impact,
reducing reported revenue growth by (3) percentage points.
At constant exchange rates and on a pro forma basis (i.e. with SafeNet in both
Q1'2014 and Q1'2015), total Company revenue expanded by +7% when including the
impact of hedges, and when removing hedge effects for both 2014 and 2015 the
Company's year-on-year total revenue growth at constant exchange rates and on a
pro forma basis was +10%.
Main segments Main activities
------------------- ------------------------- ---------
Payment & Embedded Platforms Patents
? in millions Total Identity Mobile software & Services & Others
& Products
-------------------------------------------------------------------------------
First quarter 686 369 316 500 185 1
2015
First quarter 532 253 271 425 99 8
2014
-------------------------------------------------------------------------------
Year-on-year
variation at
historical +29% +46% +17% +18% +87% (93%)
exchange rates
(including
hedge)
Year-on-year
variation at
constant +19% +35% +7% +8% +76% (93%)
exchange rates
(including
hedge)
Pro forma year-
on-year
variation at +7% +10% +7% +7% +14% (93%)
constant
exchange rates
(with hedge)
Pro forma year-
on-year
variation at
constant +10% +13% +10% +10% +15% (93%)
exchange rates,
excluding hedge
effects
-------------------------------------------------------------------------------
The anticipated profit from operation net exposure to the USD variations is
mostly hedged and consequently limited gains on profit from operations from
currency translation effects are expected for the year.
At year-end 2014, Gemalto's cash and cash equivalents were ?1,057 million
including proceeds of a ?400 million bond issued in September 2014 in
anticipation of the closing of the SafeNet acquisition. In January, Gemalto used
?727 million, net of cash acquired, for this transaction, leading to a net debt
position as at the end of the first quarter. Since the Safenet acquisition
closing, two private placements of ?75 million each have been issued with
average maturities of 8.4 and 10.2 years, and yields of 1.94% and 2.05%
respectively, with no financial covenants.
Revenue variations by region, at constant and historical exchange rates, are
presented in Appendix 1.
Segment information
Payment & Identity
? in millions First quarter First quarter
2015 2014
------------------------------------------------------------------------------
Revenue 369.3 253.0
Year-on-year variation at constant exchange rates +35%
------------------------------------------------------------------------------
The Payment & Identity segment's revenue came in at ?369 million, increasing by
+35% compared to the previous year, with growth fueled by a strong performance
in Payment and the addition of SafeNet. Embedded software and Products grew by
+7% at ?241 million and Platforms & Services sales more than doubled at ?129
million, including SafeNet's revenue. Platforms & Services growth was +20% year-
on-year on a pro forma basis.
The Payment business expanded by +18% year-on-year. The Americas posted the
largest growth, with revenue more than doubling compared to previous year on
strong sales of EMV payment cards and rapid expansion in issuance services in
the United-States.
Improvement in the Enterprise business comes both from the addition of SafeNet,
acquired on January 7, 2015, and from the sustained market demand for
cybersecurity solutions.
Revenue from the Government Programs business was up +1% compared to the first
quarter of 2014. Deployments of previously won projects started, confirming the
improving dynamics for this business.
During the first quarter Gemalto announced an agreement to acquire the secure
document business of Trüb AG, a Swiss provider of identification solutions for
governments and banks with world-class expertise in secure identity documents.
As the acquisition closed in April, no revenue is recognized for the first
quarter.
Mobile
? in millions First quarter First quarter
2015 2014
------------------------------------------------------------------------------
Revenue 316.3 271.1
Year-on-year variation at constant exchange rates +7%
------------------------------------------------------------------------------
The Mobile segment posted revenue of ?316 million, up +7% at constant exchange
rates compared to the previous year.
Embedded software & Products came in at ?260 million, expanding by +8% compared
to the first quarter of 2014. The Machine-to-Machine business in particular
increased by +25% year-on-year due to the expanding global demand of connected
devices and embedded secure elements (eSE) for the Internet of Things (IoT). The
SIM business grew by +4%.
Platforms & Services was stable at ?57 million as Mobile Financial Services
revenue decreased year-on-year due to the time necessary for finalizing the
developments of new technologies such as Trusted Execution Environment (TEE),
Host Card Emulation (HCE) and Tokenization for the mobile contactless ecosystem.
Patents & Others
? in millions First quarter First quarter
2015 2014
------------------------------------------------------------------------------
Revenue 0.6 8.4
Year-on-year variation at constant exchange rates (93%)
------------------------------------------------------------------------------
The revenue generation from patent licensing and other activities is
traditionally lumpy. It came in at ?1 million this quarter and was ?8 million
during the same period in 2014.
Additional information
* Gemalto finalizes the acquisition of SafeNet
On January 7, 2015, Gemalto closed the acquisition of SafeNet, the worldwide
leader in data and software protection, after approval by the relevant
regulatory and antitrust authorities. SafeNet was integrated with Gemalto
Payment & Identity segment and its contribution mainly consists of Platforms &
Services activities.
* Gemalto acquires Trüb AG's secure document business
On February 10, 2015, Gemalto announced that it has signed a definitive
agreement to acquire the secure document business from Trüb AG. Trüb has a 150
year history of secure printing. Headquartered in Aarau, Switzerland, it has
been a pioneer in eco-friendly and highly secure polycarbonate technology.
Today, Trüb provides identification solutions primarily to governments and banks
and is a leading provider of high security identity documents. Known for its
innovation capabilities, Trüb has also introduced a number of patented security
features to the market. The Trüb business will reinforce Gemalto's leadership in
high security identification documents and will also enable Gemalto to serve the
Swiss market of financial institutions.
On a full year basis, the business is estimated to contribute to Gemalto
revenues by approximately CHF 100 Million (approximately ?95 million). The
transaction completed on April 10, 2015 hence no contribution of the acquired
business was recognized during the first quarter.
* Gemalto Releases Findings of 2014 Breach Level Index
On February 12, 2015, Gemalto released the latest findings of the Breach Level
Index, revealing that more than 1,500 data breaches led to over one billion data
records having been compromised worldwide during 2014. These numbers represent a
+49% increase in data breaches and a +78% increase in data records that were
either stolen or lost compared to 2013.
* Developments in mobile services security
Gemalto Trusted Services Hub expands secure service deployment to 350 million
more mobile devices
In February 2015 Gemalto grew again the capabilities of its Allynis Trusted
Services Hub that permits an easy deployment of security-sensitive applications
by enterprises, banks and other digital service providers, adding the reach to
more than 350 million additional mobile devices equipped with Trustonic Trusted
Execution Environment (TEE), including the popular Samsung Galaxy range of smart
phones and other mobile devices from major handset makers.
In practice, enterprises and digital services providers connected to Gemalto's
Allynis Trusted Services Hub immediately gain access to 350 million additional
potential users, with Gemalto handling all the back-office processes on their
behalf.
Gemalto adds new Tokenization options to Its Trusted Services Hub
In February 2015 also, Gemalto added further new key capabilities to its Allynis
Trusted Services Hub for tokenization based payment services. For banks and
payment service providers that look to create a seamless enrollment and mobile
payment experience, Gemalto brings the most complete and integrated solution,
from the mobile tokenization gateway all the way to the client-server
architecture for provisioning and processing payment security.
Outlook
For 2015, Gemalto anticipates a steady expansion in annual profit from
operations towards its upgraded 2017 objective of over ?660 million.
Live Audio Webcast and Conference call
Gemalto first quarter 2015 revenue presentation will be webcast in English today
at 3pm Amsterdam and Paris time (2pm London time and 9am New York time).
This listen-only live audio webcast of the presentation and the Q&A session will
be accessible from our Investor Relations web site:
www.gemalto.com/investors
Questions will be taken by way of conference call. Investors and financial
analysts wishing to ask questions should join the presentation by dialing:
(UK) +44 203 043 2439 or (US) +1 855 402 7762 or (FR) +33 1 7077 0941
The accompanying presentation slide set is also available for download on our
Investor Relations web site.
Replays of the presentation and Q&A session will be available in webcast format
on our Investor Relations web site approximately 3 hours after the conclusion of
the presentation. Replays will be available for one year.
Calendar
Gemalto N.V. will hold its 2015 Annual General Meeting of Shareholders (AGM) on
Thursday, May 21, 2015 at the Sheraton Amsterdam Airport Hotel & Conference
Center, Schiphol Boulevard 101, 1118 BG Schiphol Airport, the Netherlands at
2:00 p.m. CET.
The first semester 2015 results will be reported on Thursday August 27, 2015,
before the opening of Euronext Paris.
Stock Exchange Listing
Gemalto N.V. is dual listed on NYSE Euronext Amsterdam and Paris, in the
compartment A (Large Caps).
Mnemonic: GTO
Exchange Dual listing on NYSE Euronext Amsterdam and Paris
Market of reference NYSE Euronext Amsterdam
ISIN Code NL0000400653
Reuters GTO.AS
Bloomberg GTO:NA
Gemalto has also established a sponsored Level I American Depository Receipt
(ADR) Program in the United States since November 2009. Each Gemalto ordinary
share is represented by two ADRs. Gemalto's ADRs trade in U.S. dollar and give
access to the voting rights and to the dividends attached to the underlying
Gemalto shares. The dividends are paid to investors in U.S. dollar, after being
converted into U.S. dollar by the depository bank at the prevailing rate.
Structure Sponsored Level I ADR
Exchange OTC
Ratio (ORD:DR) 1:2
DR ISIN US36863N2080
DR CUSIP 36863N 208
|Investor Relations |Corporate Communication |Media Relations Agency
| | |
| | |
|Gabriel Rangoni |Isabelle Marand |Suzanne Bakker
| | |
|M.: +33 6 1426 6956 |M.: +33 6 1489 1817 |M. : +31 6 1136 8659
| | |
|gabriel.rangoni(at)gemalto.com |isabelle.marand(at)gemalto.com |suzanne.bakker(at)citigateff.nl
| | |
| |
|Winston Yeo |
|M.: +33 6 2947 0814 |Edi Cohen
|winston.yeo(at)gemalto.com |M. : +31 6 2151 7820
| |edi.cohen(at)citigateff.nl
|John Lineberger |
|M.:+1 512 940 0023 |
|john.lineberger(at)gemalto.com |
About Gemalto
Gemalto (Euronext NL0000400653 GTO) is the world leader in digital security,
with 2014 annual revenues of ?2.5 billion and blue-chip customers in over 180
countries.
Gemalto helps people trust one another in an increasingly connected digital
world. Billions of people want better lifestyles, smarter living environments,
and the freedom to communicate, shop, travel, bank, entertain and work -
anytime, everywhere - in ways that are enjoyable and safe. In this fast moving
mobile and digital environment, we enable companies and administrations to offer
a wide range of trusted and convenient services by securing financial
transactions, mobile services, public and private clouds, eHealthcare systems,
access to eGovernment services, the Internet and internet-of-things and
transport ticketing systems.
Gemalto's unique technology portfolio - from advanced cryptographic software
embedded in a variety of familiar objects, to highly robust and scalable back-
office platforms for authentication, encryption and digital credential
management - is delivered by our world-class service teams. Our 14,000 employees
operate out of 99 offices, 34 personalization and data centers, and 24 research
and software development centers located in 46 countries.
For more information visit
www.gemalto.com, www.justaskgemalto.com, blog.gemalto.com, or follow (at)gemalto on
Twitter.
This communication does not constitute an offer to purchase or exchange or
the solicitation of an offer to sell or exchange any securities of Gemalto.
This communication contains certain statements that are neither reported
financial results nor other historical information and other statements
concerning Gemalto. These statements include financial projections and estimates
and their underlying assumptions, statements regarding plans, objectives and
expectations with respect to future operations, events, products and services
and future performance. Forward-looking statements are generally identified by
the words "expects", "anticipates", "believes", "intends", "estimates" and
similar expressions. These and other information and statements contained in
this communication constitute forward-looking statements for purposes of
applicable securities laws. Although management of the Company believes that the
expectations reflected in the forward-looking statements are reasonable,
investors and security holders are cautioned that forward-looking information
and statements are subject to various risks and uncertainties, many of which are
difficult to predict and generally beyond the control of the Company, that could
cause actual results and developments to differ materially from those expressed
in, or implied or projected by the forward-looking information and statements,
and the Company cannot guarantee future results, levels of activity, performance
or achievements. Factors that could cause actual results to differ materially
from those estimated by the forward-looking statements contained in this
communication include, but are not limited to: trends in wireless communication
and mobile commerce markets; the Company's ability to develop new technology and
the effects of competing technologies developed; effects of the intense
competition in the Company's main markets; challenges to or loss of intellectual
property rights; ability to establish and maintain strategic relationships in
its major businesses; ability to develop and take advantage of new software,
platforms and services; profitability of the expansion strategy; effects of
acquisitions and investments; ability of the Company's to integrate acquired
businesses, activities and companies according to expectations; ability of the
Company to achieve the expected synergies from acquisitions; and changes in
global, political, economic, business, competitive, market and regulatory
forces. Moreover, neither the Company nor any other person assumes
responsibility for the accuracy and completeness of such forward-looking
statements. The forward-looking statements contained in this communication speak
only as of the date of this communication and the Company or its representatives
are under no duty, and do not undertake, to update any of the forward-looking
statements after this date to conform such statements to actual results, to
reflect the occurrence of anticipated results or otherwise except as required by
applicable law or regulations.
Appendices
Appendix 1
Revenue by region
First quarter First quarter Year-on-year Year-on-year
? in millions 2015 2014 variation at variation at
constant exchange historical
rates exchange rates
-------------------------------------------------------------------------------
EMEA 282 258 +7% +9%
Americas 270 158 +49% +71%
Asia 134 117 +2% +14%
-------------------------------------------------------------------------------
Total revenue 686 532 +19% +29%
-------------------------------------------------------------------------------
Press Release (PDF):
http://hugin.info/159293/R/1917084/685751.pdf
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(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Gemalto via GlobeNewswire
[HUG#1917084]
Unternehmensinformation / Kurzprofil:
Datum: 30.04.2015 - 00:11 Uhr
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News-ID 389672
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contact information:
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