Gemalto first quarter 2017 revenue
(Thomson Reuters ONE) -
* Revenue at ?651 million, lower by (6%) at historical exchange rates and (8%)
at constant exchange rates
* Slow start for Enterprise, Machine-to-Machine and Government Programs with
acceleration expected in the second semester
* In response to recent market developments, the Company has launched a
transition plan expected to contribute over ?50 million to profit from
operations annually
* Update of 2017 outlook after the previously announced action plan review
Revenue variations are at constant exchange rates except where otherwise
noted.
All figures presented in this press release are unaudited.
Amsterdam, April 28, 2017 at 12:00am - Gemalto (Euronext NL0000400653 - GTO),
the world leader in digital security today announces its revenue for the first
quarter of 2017.
Main segments Main activities
First quarter Embedded Platforms & Patents &
2017 Total Payment & Mobile software & Services Others
(? in Identity Products (P&S)
millions) (E&P)
Revenue 651 404 247 439 212 1
Year-on-year
variation at (8%) (8%) (7%) (8%) (7%) +35%
constant
exchange rates
Year-on-year
variation at (6%)
historical
exchange rates
Philippe Vallée, Chief Executive Officer, commented: "The first quarter revenue
reflects the significant volatility in our Payment business in line with the
unique pattern of EMV migration in the world's largest EMV market, the United
States. In addition, the removable SIM business continues to decline while the
ecosystem prepares for the next generation of devices. Consequently, Gemalto has
launched a transition plan aimed at adjusting its Payment operations and Mobile
business to reduced demand. For Enterprise, Government Programs and Machine-to-
Machine businesses, Gemalto expects an acceleration in the second part of the
year supported by solid backlogs and continues to invest in these businesses in
line with their long term trends. The acquisition of the 3M Identity Management
Business is on-track with all approvals received."
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 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 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) and with section 2:362(9) of
the Netherlands Civil Code.
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 the acquisition process).
* Equity-based compensation charges are defined as (i) the discount granted to
employees acquiring Gemalto shares under Gemalto Employee Share Purchase
plans; (ii) the amortization of the fair value of share 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.
Net debt and net cash
Net debt is a non IFRS measure defined as total borrowings net of cash and cash
equivalents. Net cash is a non IFRS measure defined as cash and cash equivalents
net of total borrowings.
General information
Main segments Main activities
Patents
First quarter Payment Embedded Platforms &
2017 Total & Identity Mobile software & Services Others
(? in millions) & Products
Revenue 651 404 247 439 212 1
As a percentage
of total 100% 62% 38% 67% 32% 0%
revenue
For the first quarter of 2017, total revenue came in at ?651 million, lower by
(6%) at historical exchange rates and by (8%) at constant exchange rates.
Payment & Identity posted sales of ?404 million, representing 62% of total
Company revenue.
Embedded software & Products revenue of ?439 million was (8%) lower compared to
the same period of last year mainly due to lower sales to banks in the United
States and to mobile network operators. Embedded software & Products activity
for Government Programs continued to show positive trends during the quarter.
The Platforms & Services activity posted revenue of ?212 million, down by (7%)
year-on-year, with moderate growth in Mobile Platforms & Services partially
offsetting the lower payment cards personalization services. Platforms &
Services activity represented 32% of first quarter Company revenue.
Revenue variations by region, at constant and historical exchange rates, are
presented in Appendix 1.
As announced on March 22, 2017 and based on the recent trends in Payment and
removable SIM, Gemalto has launched a transition plan expected to contribute
over ?50 million to profit from operations annually. The on-going business
efficiency program is being expanded to align to the long term market demand in
terms of capacity, footprint and resources. One of the first areas of focus is
to adjust Payment operations as the market is shifting to a normalized EMV
inventory level after the initial United States ramp up. As part of the next
multi-year development plan, the Company is also reviewing its portfolio of
activities in order to align with its long-term priorities which includes the
re-allocation of resources to growth businesses.
Segment information
Payment & Identity
? in millions First quarter 2017 First quarter 2016
Revenue 404 433
Year-on-year variation at constant (8%)
exchange rates
The Payment & Identity segment's revenue came in at ?404 million, decreasing by
(8%) compared to the previous year.
The segment's Embedded software & Products revenue was ?246 million and
Platforms & Services revenue came in at ?158 million.
The Payment business decreased by (16%) year-on-year, at ?200 million. Sales in
Americas were lower by (34%) due to the on-going normalization of US EMV card
inventory levels at our customers. Revenue from all regions outside of Americas
was stable year-on-year.
The Enterprise business revenue increased to ?105 million, up +1% on the same
period in 2016. The trend in revenue mix within the business continues to move
towards a higher proportion of cloud and software services. To meet the market
demand, the Enterprise business is increasing investment to expand its services
portfolio in this growing sector.
The Government Programs business was stable at ?99 million on top of a strong
+34% increase a year ago. Solid performance in Government Programs Embedded
software & Products fully offsets the reduction in Platforms & Services revenue.
Backlog continued to expand during the quarter.
Mobile
? in millions First quarter 2017 First quarter 2016
Revenue 247 258
Year-on-year variation at constant (7%)
exchange rates
The Mobile segment posted revenue of ?247 million, (7%) lower at constant
exchange rates compared to the first quarter of the previous year.
Embedded software & Products revenue for the segment came in at ?194 million.
SIM sales decreased by (14%) to ?118 million due to a lower market share in the
first quarter in a more competitive landscape as mobile network operators push
out the upgrade of removable SIM to focus on next generation connectivity. This
is coupled with soft demand in Middle East and Africa as the result of stricter
subscription registration processes. The Machine-to-Machine revenue was slightly
lower by (1%) year-on-year, at ?75 million, due to temporary weak performance in
North America. New design wins recorded during the quarter will progressively
drive business expansion across sectors and regions throughout the rest of the
year.
Platforms & Services revenue for the segment came in at ?53 million, up by +3%
year-on-year. On demand connectivity solution continues to gain traction
following the release of the latest GSMA specifications for embedded SIM and
mobile subscription management.
Patents & Others
? in millions First quarter 2017 First quarter 2016
Revenue 0.6 0.4
Year-on-year variation at constant +35%
exchange rates
Patents & Others revenue was ?0.6 million this quarter versus ?0.4 million
during the same period in 2016.
Additional information
* AT&T strengthens Internet of Things (IoT) offerings with Gemalto's remote
subscription management solution
Gemalto is supplying AT&T with a remote subscription management solution
that will help enable its customers to deploy new and highly secure IoT
applications in the U.S. and globally. Gemalto's On-Demand Connectivity
(ODC) subscription management solution and GSMA M2M 3.1 compliant Embedded
SIMs (eSIMs) will simplify the logistics of providing mobile services for
Enterprises requiring global mobile connectivity for IoT applications and
provide improved life cycle support for their subscriptions.
* Gemalto and Microsoft join forces to provide seamless connectivity for
Windows 10 devices
Gemalto and Microsoft have teamed up to make this advance a reality for end
users to have a secure and ubiquitous connectivity experience. Gemalto's On-
Demand Connectivity subscription management solution, together with Windows
10 native eSIM support enable consumers to seamlessly manage the
connectivity experience of their devices.
* GigSky chooses Gemalto to enable seamless connectivity for devices around
the world
Gemalto will supply GigSky with its On-Demand Connectivity (ODC) services on
a GSMA compliant embedded SIM (eSIM) with remote management capabilities.
Devices enabled with these eSIMs will allow end-users to choose short-term
data plans across the globe. GigSky offers mobile connectivity solutions for
consumers and businesses with service available in over 140 countries for a
large variety of devices including iPad with Apple[1] SIM.
* Gemalto releases findings of 2016 Breach Level Index
Gemalto released the findings of the Breach Level Index revealing that
1,792 data breaches led to almost 1.4 billion data records being compromised
worldwide during 2016, an increase of 86% compared to 2015. Identity theft
was the leading type of data breach in 2016, accounting for 59% of all data
breaches. In addition, 52% of the data breaches in 2016 did not disclose the
number of compromised records at the time they were reported.
* Gemalto's HSM enables Microsoft Azure Information Protection customers to
maintain full control of encryption keys
Microsoft Azure Information Protection customers can now take advantage of
the new "Hold Your Own Key" (HYOK) functionality using Gemalto's SafeNet
Luna Hardware Security Modules (HSMs). The integration allows organizations
in highly regulated scenarios to manage, own and store their encryption keys
in on-premises HSMs and securely share data with complete control over their
keys. With this solution, enterprises can easily align data protection
policies and business processes without compromising the integrity and
security of their data.
* Gemalto to supply new Digital Identity Solution for the Swedish Tax Agency
Gemalto has been awarded a multi-year contract to supply its eGov
authentication platform for online services, Premium Polycarbonate eID cards
and a comprehensive Enrollment and Issuance solution to Skatteverket, the
Swedish Tax Agency. This ID card provides official proof of identity and
access to a range of government services and can be issued to all residents,
regardless if they have Swedish citizenship or not. In the future, the
development of a secure digital identity will enable users to also access
online services of Skatteverket and other Swedish authorities2, with eGov
enabling strong authentication.
* Uganda speeds visa issuance and strengthens border security with Gemalto
Visa Management System
Gemalto is supplying Uganda's Directorate of Citizenship and Immigration
Control (DCIC) with its Coesys Visa Management that combines swift issuance
of all visas and permits with biometric enrollment upon arrival. The new
scheme allows the authorities to manage the entire visa life cycle from
application to issuance. It will help the country achieve its goals to
facilitate travel, enhance national security and protect a traveler's
identity against theft.
Outlook
For the second quarter of 2017, business trends continue to be weak in Payment
and SIM. As a result, the Company expects its second quarter revenue to be lower
by 8% to 10% year-on-year at constant exchange rates. Due to this decrease, the
operating leverage will not be fully realized over the semester and, as a
result, the first semester profit from operations is expected to be between ?90
million and ?100 million.
For the second semester of 2017, with the expected revenue acceleration in
Enterprise, Government Programs and Machine-to-Machine, the Company anticipates
its revenue to be stable when compared to the same period of 2016 excluding the
integration of 3M Identity Management business.
With the combination of this revenue trend, the ramping up of the transition
plan and the modest contribution from the 3M Identity Management business, the
Company expects its profit from operations to be between ?300 million and ?350
million for the second semester of 2017.
Live Audio Webcast and Conference call
Gemalto first quarter 2017 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 9457 or (US) +1 855 402 7764 or (FR)
+33 1 7077 0939
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 2017 Annual General Meeting of Shareholders (AGM) on
Thursday, May 18, 2017 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 2017 results will be reported on Friday September 1, 2017,
before the opening of Euronext Paris.
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
This press release contains inside information as referred to in article 7
paragraph 1 of Regulation (EU) 596/2014 (Market Abuse Regulation).
About Gemalto
Gemalto (Euronext NL0000400653 GTO) is the global leader in digital security,
with 2016 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 15,000+ employees operate out of 112 offices, 43 personalization and data
centers, and 30 research and software development centers located in 48
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.
Appendix
Appendix 1
Revenue by region
First quarter First quarter Year-on-year Year-on-year
? in millions 2017 2016 variation at variation at
constant historical
exchange rates exchange rates
EMEA 287 299 (4%) (4%)
Americas 222 274 (22%) (19%)
Asia 142 118 +17% +20%
Total revenue 651 691 (8%) (6%)
--------------------------------------------------------------------------------
[1] Apple and iPad are trademarks of Apple Inc., registered in the U.S. and
other countries
Press Release (PDF):
http://hugin.info/159293/R/2099998/795935.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: 28.04.2017 - 00:00 Uhr
Sprache: Deutsch
News-ID 538986
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contact information:
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Kategorie:
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