Gemalto third quarter 2017 revenue
(Thomson Reuters ONE) -
* Third quarter revenue at ?751 million, up +3.4% at constant exchange rates
* Revenue growth acceleration in Government Programs, Machine-to-Machine and
Enterprise
* SIM and Payment revenue decrease in line with Company's expectations
* Second semester revenue and profit from operations outlook confirmed
Amsterdam, October 27, 2017 at 12:00 AM - Gemalto (Euronext NL0000400653 - GTO),
the world leader in digital security today announces its revenue for the third
quarter of 2017.
Main segments Main activities
Third quarter Embedded Platforms & Patents &
2017 Total Payment & Mobile software & Services Others
(? in Identity Products (P&S)
millions) (E&P)
Revenue 751 481 269 493 257 1
Year-on-year
variation at +3% +7% (2%) (2%) +15% +108%
constant
exchange rates
Year-on-year
variation at =
historical
exchange rates
Philippe Vallée, Chief Executive Officer, commented: "Gemalto posted revenue
growth in the third quarter of 2017. The integration of the recently acquired
Identity Management Business is progressing well, and contributed to the strong
performance of Government Programs. Machine-to-Machine also grew double-digits
and the Data Protection business line posted a sharp increase in Enterprise. On
the other hand, the SIM market remains under pressure and US EMV continues its
slow normalization process. We remain fully focused on delivering on our outlook
in the fourth quarter.
Throughout the year we have progressively evolved our organization in order to
better accompany our customers in their digital transformation and align the
Company's resources with its long term vision which will be shared at our
Strategy Day in March 2018. The plan will take the full measure of the changes
in our historical markets and will focus on leveraging our unique set of core
technologies."
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 acquisition of 3M's Identity
Management business in May 2017 is part of the Government Programs 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 impairment 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 impairment of intangibles resulting from acquisitions are
defined as the amortization, and impairment expenses related to intangibles
assets and goodwill 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 impairment 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.
All figures presented in this press release are unaudited.
General information
Main segments Main activities
Patents
Third quarter Payment Embedded Platforms &
2017 Total & Identity Mobile software & Services Others
(? in millions) & Products
Revenue 751 481 269 493 257 1
Year-on-year
variation at +3% +7% (2%) (2%) +15% +108%
constant
exchange rates
As a percentage
of total 100% 64% 36% 66% 34% 0%
revenue
Third quarter 2017 total revenue came in at ?751 million, up 3% at constant
exchange rates and stable at historical exchange rates.
The Payment & Identity segment revenue grew +7%, at ?481 million. This segment
represented 64% of the total Company revenue this quarter. The Mobile segment
decreased by (2%) at ?269 million.
The Platforms & Services activity posted revenue of ?257 million, up +15% year-
on-year driven by growth in eGovernment services, Enterprise cybersecurity
solutions and Mobile Platforms & Services. Platforms & Services activity
represented 34% of the total Company revenue.
Embedded software & Products revenue came in at ?493 million, (2%) lower
compared to the same period of last year. The lower sales of banking cards to
financial institutions in the US and removable SIMs were partially offset by
growing deliveries of e-documents to Governments and wireless modules for the
Internet of Things.
Revenue variations by region, at constant and historical exchange rates, are
presented in Appendix.
Segment information
Payment & Identity
? in millions Third quarter 2017 Third quarter 2016 Change at
constant rates
Revenue 481 467 +7%
The Payment & Identity segment revenue was ?481 million this quarter, increasing
by +7% compared to the same period of last year. The segment's Embedded software
& Products revenue came in at ?275 million while its Platforms & Services
revenue was ?206 million.
The Government Programs business revenue increased by +58% year-on-year, at ?169
million which includes ?50 million from the recently acquired Identity
Management Business. During the quarter, both Gemalto's organic Government
Programs business and the Identity Management Business grew double digits. The
EMEA region stood out with several border control project deliveries.
The Enterprise business revenue increased to ?113 million, up by +1% compared to
the same period of last year. The Data Protection business line recorded double
digit growth on the back of the increasing number of data breaches that call for
more robust and broader encryption solutions. This revenue growth was curbed by
revenue headwinds resulting from the ongoing business model shift from hardware
to services in the Authentication business line.
The Payment business revenue came in at ?199 million, down (14%) year-on-year.
Sales in Americas decreased by (25%) in the third quarter compared with (37%) in
the first semester, essentially due to the drop in demand related to the ongoing
US EMV market slow normalization process.
Mobile
? in millions Third quarter 2017 Third quarter 2016 Change at
constant rates
Revenue 269 285 (2%)
The Mobile segment posted revenue of ?269 million this quarter, (2%) lower
compared to the same period of last year.
Embedded software & Products revenue for the segment came in at ?217 million.
The Machine-to-Machine business grew by +12% to ?88 million. This long term
dynamic is driven by increasing demand for connectivity in the Internet of
Things (IoT) for uses in automotive, asset tracking, healthcare solutions and
smart meters. SIM sales were lower by (12%) at ?129 million, in line with
expectations for the second semester. The SIM market was under strong pressure
in this quarter and is expected to remain so as mobile network operators
continue to focus their investments on next generation connectivity.
Platforms & Services revenue for the segment came in at ?52 million this
quarter, up +3% year-on-year. During the quarter, Gemalto continued to actively
participate to the development of embedded SIMs (eSIMs) and its remote
provisioning ecosystem as endorsed by the GSMA, resulting in new references with
connected device makers and mobile network operators such as those recently
announced with Telefónica and Lenovo.
Patents & Others
? in millions Third quarter 2017 Third quarter 2016 Change at
constant rates
Revenue 1.3 0.7 +108%
Patents & Others revenue was ?1.3 million this quarter versus ?0.7 million
during the same period in 2016.
Outlook
Gemalto confirms its 2017 second semester expectations of a stable revenue year-
on-year leading to profit from operations of between ?200 million and ?230
million including the acquired Identity Management Business. As a result, profit
from operations for the full year is expected to be between ?293 million and
?323 million.
Additional information
Below is a highlight of new contracts and achievements published by the Company
in the third quarter of 2017
Enterprise
August 29, 2017 Gemalto Announces Data Protection Solutions for VMware
Cloud on AWS
September 20, 2017 First Half 2017 Breach Level Index Report: Identity Theft
and Poor Internal Security Practices Take a Toll
September 26,2017 Gemalto helps banks and payment providers simplify and
streamline encryption operations
Government Programs
September 07, 2017 Gemalto enables biometric passports in over 30 different
countries
September 27, 2017 Wyoming joins Gemalto's digital driver's license pilot
Mobile
July 21, 2017 Gemalto's remote subscription management solution helps
Lenovo customers to always be connected
August 01, 2017 Telefónica launches 'out of the box' mobile connectivity
for consumer devices with latest Gemalto cloud service
August 03,2017 Gemalto first in the world to be fully-certified by the
GSMA for secure eSIM subscription management
September 11, 2017 OnKöl remote patient monitoring uses Gemalto IoT
connectivity to support 'age in place' individuals
Payment
July 21, 2017 Gemalto offers El Corte Inglés store card holders an easy
route to Samsung Pay
Industry Recognitions
July 06, 2017 Frost & Sullivan Recognizes Gemalto for Leadership in
Encryption and Data Protection
Live Audio Webcast and Conference call
Gemalto third quarter 2017 revenue presentation will be webcast in English today
at 3:00 PM Amsterdam and Paris time (2:00 PM London time and 9:00 AM New York
time).
Audio webcast
A listen-only live audio webcast of the presentation and the Q&A session will be
accessible here on our Investor Relations website via the link below:
Gemalto webcast
This webcast is compatible with Android and iOS terminals, including iPads.
Questions will be taken by way of conference call.
Conference call
Investors and financial analysts wishing to ask questions should join the
presentation by dialing:
(UK) +44 207 194 3759 or (US) +1 844 286 0643 or (FR)
+33 1 7272 7403
PIN: 52461655#
The accompanying presentation slide set that will be used during the conference
call is available on Gemalto 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 2017 earnings will be reported on Friday March 2, 2018, before the
opening of Euronext Amsterdam.
The Capital Markets Day will be held on March 13, 2018 in New York.
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
| | |
|Jean-Claude Deturche |Isabelle Marand |Suzanne Bakker
| | |
|M.: +33 6 2399 2141 |M.: +33 6 1489 1817 |M. : +31 6 1136 8659
| | |
|jean- |isabelle.marand(at)gemalto.com|suzanne.bakker(at)citigateff.nl
|claude.deturche(at)gemalto.com | |
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|Sébastien Liagre
|M.: +33 6 1751 4467
|sebastien.liagre(at)gemalto.com
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|Winston Yeo
|M.: +33 6 2947 0814
|
|winston.yeo(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.
From secure software to biometrics and encryption, 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
Revenue by region
Third quarter Third quarter Year-on-year Year-on-year
? in millions 2017 2016 variation at variation at
constant historical
exchange rates exchange rates
EMEA 347 328 +7% +6%
Americas 256 284 (5%) (10%)
Asia 147 141 +11% +5%
Total revenue 751 753 +3% =
Press release (PDF):
http://hugin.info/159293/R/2145141/822252.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: 27.10.2017 - 00:00 Uhr
Sprache: Deutsch
News-ID 565543
Anzahl Zeichen: 26685
contact information:
Town:
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Kategorie:
Business News
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