Gemalto First Half 2007 Results
Gemalto first half 2007 results
Revenue for the first half at 760 million
Operating income1 at 15 million
Ongoing adjustments in operating cost structure delivering benefits
Strong net cash position at 291 million after use of 100 million in share buyback program
Amsterdam, September 13, 2007 - Gemalto (Euronext NL0000400653 - GTO), the leader in digital
security, today announced its results for the half year ended June 30, 2007.
Highlights of the adjusted income statement1 (figures below are at historical exchange rates):
in millions H1 2006 H1 2007 Year-on-year change2
Net sales 846 760 (10.2)%
Gross profit 260 222 (14.6)%
Gross margin (%) 30.7% 29.2% (1.5) ppts
Operating expenses3 227 210 (7.8)%
Operating income 32.7 15.2 (53.6)%
Operating margin (%) 3.9% 2.0% (1.9) ppts
Profit for the period 28.9 24.5 (15.2)%
Adjusted basic earnings per share (euro)4 0.30 0.26 (15.3)%
The above mentioned adjusted measures (unaudited) exclude accounting entries related to the business combination with Gemplus, as well as one-off
expenses and reorganization charges incurred in connection with this transaction.
They are not meant to be considered in isolation or as a substitute for
comparable IFRS measures, and should be read only in conjunction with the condensed consolidated interim financial statements prepared in
accordance with IFRS (unaudited) provided in appendix 6. Gemalto believes these adjusted financial measures are helpful in assessing its past
financial performance and its future results.
Olivier Piou, Chief Executive Officer, commented: Gemaltos performance in the first half of 2007
reflects the benefits of our pricing discipline in Mobile Communication, the first effects of our cost structure
adjustments to better address the market environment, and good patent licensing activity.
During this first semester, we moved from managing post-merger integration to actively developing our joint capabilities and winning significant digital security business. We remain confident that the second half of 2007 will further reflect the benefits of our strategy, which combines initiatives for profitable growth with cost
1 The H1 2007 adjusted income statement measures presented in this press release were prepared on an adjusted basis reflecting the
consolidated activity of the Group over the first half-year, excluding accounting entries related to the business combination with Gemplus, as well as
one-off expenses and reorganization charges incurred in connection with this transaction; the H1 2006 adjusted income statement measures
presented for comparison were prepared on the same adjusted basis and are pro forma measures, reflecting the combined activity of Gemalto and Gemplus over the period, and assuming that the combination had taken place as of January 1, 2005.
2 At historical (reported) exchange rates.
3 Operating expenses include research & engineering expenses, sales & marketing expenses and general & administrative expenses; they do not include other operating income & expenses, net.
4 The H1 2007 Adjusted basic earnings per share were determined on the basis of the average number of Gemalto shares outstanding during the six-month period ended June 30, 2007 i.e. taking into account the effect of the share buy-back on the average number of shares outstanding during the period.
The H1 2006 Adjusted basic earnings per share were determined on the basis of the average number of Gemalto shares issued during the six-month period ended June 30, 2007 less the average number of Treasury shares held by the Company during the six-month period ended June 30, 2006.