Gemalto third quarter 2016 revenue and 2017 outlook
(Thomson Reuters ONE) -
* Revenue at ?753 million, (1%) at constant exchange rates
* Trends are positive for Machine-to-Machine, Government Programs, Enterprise
and in line with third quarter expectations for Payment and Mobile
* For 2016 Gemalto expects to generate a +1.5 percentage point gross margin
increase
* 2017 profit from operations outlook expected to be between ?500 million and
?520 million
Revenue variations are at constant exchange rates except where otherwise
noted.
All figures presented in this press release are unaudited.
Amsterdam, October 28, 2016 at 12:00am - Gemalto (Euronext NL0000400653 - GTO),
the world leader in digital security today announces its revenue for the third
quarter of 2016.
Main segments Main activities
------------------ --------------------------
Third quarter Embedded Platforms & Patents &
2016 Total Payment & Mobile software & Services Others
(? in Identity Products (P&S)
millions) (E&P)
---------------------- --------------------------------------------- ----------
Revenue 753 467 285 522 231 1
-------------------------------------------------------------------------------
Year-on-year
variation at (1%) +1% (5%) (2%) 0% +2%
constant
exchange rates
Year-on-year
variation at (2%)
historical
exchange rates
Philippe Vallée, Chief Executive Officer, commented: "Gemalto's revenue was
stable over the first nine months of 2016. In the third quarter, Enterprise and
Government Programs posted moderate revenue increases while Machine-to-Machine's
growth accelerated. Payment and SIM sales were in line with the Company's
expectations for the quarter. Gemalto expects to increase its gross margin by
+1.5 percentage point through an acceleration of revenue growth towards the end
of the year. From the current planning processes, Gemalto's 2017 profit from
operations is expected to be between ?500 million and ?520 million, which
corresponds to an annual expansion of around +10% since 2013. This outlook
reflects a very adverse mobile environment and slower than anticipated migration
of payment cards in 2017. It also takes into account plans for increased
investments to capture growth beyond 2017 in Mobile Platforms & Services,
Enterprise and Government Programs. Gemalto's Platforms & Services revenue
objective of ?1 billion in 2017 remains unchanged."
Basis of preparation of financial information
Segment information
The Mobile segment reports on businesses associated with mobile cellular
technologies including Machine-to-Machine, mobile secure elements (SIM, embedded
secure element) and mobile Platforms & Services. The Payment & Identity segment
reports on businesses associated with secure personal interactions including
Payment, Government Programs and Enterprise. The SafeNet acquisition in 2015 is
part of the Enterprise business.
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 currencies other 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 hedging program, except where otherwise
noted. All other figures in this press release are at historical exchange rates,
except where otherwise noted.
Adjusted income statement and profit from operations (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 IFRS operating profit adjusted for (i) the
amortization and depreciation of intangibles resulting from acquisitions, (ii)
restructuring and acquisition-related expenses, (iii) all equity-based
compensation charges and associated costs; and (iv) fair value adjustments upon
business acquisitions. 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.
* 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 an acquisition process).
* Equity-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
the related costs.
* 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.
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
Third quarter Payment Embedded Platforms &
2016 Total & Identity Mobile software & Services Others
(? in millions) & Products
----------------------- ---------------------------------------------- --------
Revenue 753 467 285 522 231 1
As a percentage
of total 100% 62% 38% 69% 31% 0%
revenue
-------------------------------------------------------------------------------
For the third quarter of 2016 total revenue came in at ?753 million, lower by
(1%) at constant exchange rates. Payment & Identity, representing 62% of total
Company revenue, posted sales of ?467 million, up +1% year-on-year.
Embedded software & Products revenue of ?522 million was (2%) lower compared to
the same period last year due to lower sales to mobile network operators and to
a lesser extent to financial institutions. Secure documents for Government
Programs and wireless modules for Machine-to-Machine continued to record
positive trends this quarter. The Platforms & Services activity, posted sales of
?231 million, was stable year-on-year due to client delays in project
commencements for Mobile Platforms & Services, eGovernment services and
Enterprise cybersecurity solutions this quarter.
Currency movements had a negative (1) percentage point effect on revenue growth
in the third quarter of 2016. The hedging program, which aims at partially
neutralizing the impact of currency variations on the Company's profit from
operations, produced a 1 percentage point difference compared to the same period
last year.
Revenue variations by region, at constant and historical exchange rates, are
presented in Appendix 1.
Segment information
Payment & Identity
Third Third
? in millions quarter quarter
2016 2015
------------------------------------------------------------------------
Revenue 467 469
Year-on-year variation at constant exchange rates +1%
------------------------------------------------------------------------
The Payment & Identity segment's revenue came in at ?467 million, increasing by
+1% compared to the previous year.
Embedded software & Products revenue was stable at ?288 million. The segment's
Platforms & Services revenue came in at ?179 million, up +2% compared to the
same period last year.
The Payment business revenue came in at ?241 million, reduced by (3%) year-on-
year. The Americas revenue was lower due to soft market environment in Brazil
and to the high comparison basis in United States related to the EMV liability
shift deadline a year ago.
The Enterprise business revenue increased to ?117 million, up +4% on the same
period in 2015. The trend in revenue mix within the Authentication business line
continues to move towards software and services. To meet the increasing market
demand for cybersecurity solutions, the Enterprise business is continuing to
increase its sales coverage, expanding Gemalto's network of technology partners
and accelerating investment in R&D in order to strengthen the Company's offering
in this growing sector.
The Government Programs business revenue was at ?109 million, up +9% year-on-
year, with the increase coming from deliveries of previously won projects.
During the third quarter, Gemalto also finalized the transformation of a
production site in order to accompany the increase in project deliveries
anticipated over the coming quarters.
Mobile
Third Third
? in millions quarter quarter
2016 2015
------------------------------------------------------------------------
Revenue 285 299
Year-on-year variation at constant exchange rates (5%)
------------------------------------------------------------------------
The Mobile segment posted revenue of ?285 million, (5%) lower at constant
exchange rates compared to the third quarter of previous year.
Embedded software & Products revenue for the segment came in at ?234 million.
SIM sales were lower by (11%) at ?152 million year-on-year, compared to the
(16%) in the second quarter of 2016, with the improvement coming from slightly
better conditions in Latin America and Asia. During the quarter, regulators of
some countries in Africa also started to apply stricter subscription
registration processes, similar to what is observed in the Chinese market with
lower market demand. The Machine-to-Machine business grew by +11% year-on-year,
at ?81 million and accelerating sequentially, supported by the expanding global
demand of connected devices and embedded secure elements for the Internet of
Things (IoT).
Platforms & Services revenue for the segment came in at ?52 million, reduced by
(9%) year-on-year with slower project commencements due to longer client
decision processes. During this quarter, Gemalto continues to progress with its
Trusted Service Hub (TSH) offering by partnering Dai Nippon Printing (DNP) in
Japan to offer issuers digital card provisioning and tokenization services for
Apple Pay, which is transforming mobile payments with an easy, secure and
private way to pay. Gemalto was also selected by Market Pay to load digital
Carrefour payment and loyalty cards as well as by Valeo to provision and store
virtual car keys securely into smartphones. The Company continues to work
closely with both device manufacturers and mobile network operators on the GSMA
specifications for embedded SIMs (eSIMs) and remote provisioning for primary
devices in the consumer market, in order to best align and set up the ecosystem.
Patents & Others
Third Third
? in millions quarter quarter
2016 2015
------------------------------------------------------------------------
Revenue 1 1
Year-on-year variation at constant exchange rates +2%
------------------------------------------------------------------------
Patents & Others revenue was ?0.7 million this quarter versus ?0.6 million
during the same period in 2015.
Additional information
* Orange joins forces with Gemalto to launch the Samsung Gear S2, the first
connected watch with a built-in SIM
Gemalto provides Orange with a secure platform which enables it to manage the
customer's mobile subscription seamlessly and remotely, for the connected
smartwatch with built-in SIM. This Gemalto solution complies with the first
version of the specifications defined by the industry as a whole within the
framework of the GSMA, an association of mobile operators and industrial
players.
* Maryland unveils a new secure driver's license leveraging Gemalto's
polycarbonate technology
Gemalto announces that the Maryland Department of Transportation's Motor Vehicle
Administration (MVA) has begun rolling out its new secure and redesigned
driver's license and identification (ID) card across the state. The
polycarbonate-based driver's license gives Maryland residents a tamper-resistant
credential that reduces document forgery and protects against identity fraud.
* TIM and Samsung launch the first smartwatch in Italy with integrated eSIM,
in collaboration with Gemalto
Gemalto, TIM and Samsung, launched today the first smartwatch in Italy with an
integrated embedded SIM (eSIM), representing the evolution of the SIM Card and
mobile devices. Samsung's Gear S2 Classic 3G Smartwatch is the first wearable
device in the world with eSIM, a technological innovation that marks a further
step towards the set-up of the Internet of Things ecosystem.
* Posten Norge selects Gemalto ID Verification to strengthen fraud protection
for Norway
Gemalto has won a major contract to supply Posten Norge, Norway's national post
and logistics service, with its Coesys ID Verification solution that enables
customer credentials such as identity cards and passports to be checked quickly
and easily by branch staff. Coesys ID Verification will deliver a robust
solution for the authentication of identification documents and allow Posten
Norge to act as a highly efficient Know Your Customer (KYC) hub for the
country's financial services sector, in line with the requirements of the latest
EU Anti-Money Laundering Directive (AML4).
* Gemalto significantly expands big data security offerings
Gemalto announces a major expansion of its industry-leading SafeNet data
protection portfolio that makes it easier for enterprises to protect big data
deployments in the cloud, data center, and virtualized environments. Gemalto's
SafeNet data encryption and tokenization solutions can now be used to secure
data in the most widely used big data environments through technology
integrations with leading providers including MongoDB, Cloudera, Couchbase,
DataStax, Hortonworks, IBM, and Zettaset.
* Carrefour payment cards go digital thanks to Gemalto's proven Trusted
Service Hub
Gemalto has been chosen by Market Pay, payment institution of the world's second
biggest retailer, to deploy a mobile payment solution for its banking card. This
project is part of a multi-channel strategy that leverages connected
technologies to further enhance the shopping experience. Gemalto's Allynis
Trusted Service Hub (TSH) will allow the customers to load a digital version of
their existing banking card, as well as the retailer loyalty program, onto an
Android phone, enabling easy and single customer journey at any NFC POS
terminal.
* Gemalto releases findings of first half 2016 Breach Level Index
Gemalto, today released the findings of the Breach Level Index revealing that
data breaches increased 15% in the first six months of 2016 compared to the last
six months of 2015. Worldwide, there were 974 reported data breaches and more
than 554 million compromised data records in the first half of 2016.
* Gemalto and Valeo partner to turn your smartphone into a secure car key
Gemalto has partnered with Valeo, one of the world's leading automotive
suppliers, to ensure the security of its virtual car key system called Valeo
InBlue®. With Valeo InBlue®, drivers can use their smartphone or connected watch
to lock, unlock and start their car, control applications and remotely access
useful vehicle data using Bluetooth®.
* Norwegian national payment scheme BankAxept trusts Gemalto to enable mobile
financial services for banks
Gemalto has been awarded a major contract by BankAxept, the national payment
scheme of Norway, to enable all local banks to interconnect through a single
credentials management hub for streamlined and secure management of mobile
payments services.
Outlook
For 2016, Gemalto expects to generate a +1.5 percentage point gross margin
increase through an acceleration of revenue growth in the fourth quarter.
From the current planning processes, Gemalto's 2017 profit from operations is
expected to be between ?500 million and ?520 million, leading to a compound
average growth rate of around +10% since 2013. This outlook reflects a very
adverse mobile environment and slower than anticipated migration of payment
cards in 2017. It also takes into account plans for increased investments to
capture growth beyond 2017 in Mobile Platforms & Services, Enterprise and
Government Programs. Gemalto's Platforms & Services revenue objective of ?1
billion in 2017 remains unchanged.
Live Audio Webcast and Conference call
Gemalto third quarter 2016 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) +44 203 367 9456 or (US) +1 855 402 7762 or (FR)
+33 1 7077 0934
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
The full year 2016 results will be reported on Friday March 3, 2017, before the
opening of Euronext Amsterdam.
Stock Exchange Listing
Gemalto N.V. is dual listed on Euronext Amsterdam and Paris, in the compartment
A (Large Caps).
Mnemonic GTO
Exchange Dual listing on Euronext Amsterdam and Paris
Market of reference 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
| | |
| | |
|Winston Yeo |Isabelle Marand |Suzanne Bakker
| | |
|M.: +33 6 2947 0814 |M.: +33 6 1489 1817 |M. : +31 6 1136 8659
| | |
|winston.yeo(at)gemalto.com |isabelle.marand(at)gemalto.com|suzanne.bakker(at)citigateff.nl
| | |
|
|Sébastien Liagre
|M.: +33 6 1751 4467
|sebastien.liagre(at)gemalto.com
About Gemalto
Gemalto (Euronext NL0000400653 GTO) is the global leader in digital security,
with 2015 annual revenues of ?3.1 billion and customers in over 180 countries.
We bring trust to an increasingly connected world.
Our technologies and services enable businesses and governments to authenticate
identities and protect data so they stay safe and enable services in personal
devices, connected objects, the cloud and in between.
Gemalto's solutions are at the heart of modern life, from payment to enterprise
security and the internet of things. We authenticate people, transactions and
objects, encrypt data and create value for software - enabling our clients to
deliver secure digital services for billions of individuals and things.
Our 14,000+ employees operate out of 118 offices, 45 personalization and data
centers, and 27 research and software development centers located in 49
countries.
For more information visit
www.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
Third quarter Third quarter Year-on-year Year-on-year
? in millions 2016 2015 variation at variation at
constant historical
exchange rates exchange rates
-------------------------------------------------------------------------------
EMEA 328 333 0% (1%)
Americas 284 315 (9%) (10%)
Asia 141 121 +15% +16%
-------------------------------------------------------------------------------
Total revenue 753 769 (1%) (2%)
-------------------------------------------------------------------------------
Press release (PDF):
http://hugin.info/159293/R/2052383/768126.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Gemalto via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 28.10.2016 - 00:00 Uhr
Sprache: Deutsch
News-ID 503448
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contact information:
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Kategorie:
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