Gemplus returns to profit

Gemplus returns to profit

French smart card manufacturer Gemplus has returned to profit in 2004, driven by growth in wireless markets and financial sector EMV applications.

Revenue at group level was up 15.5% to EUR865 million as the company turned in a net profit of EUR4.7 million.

Financial Services revenue was driven by the EMV migration, with a massive rollout in the UK and ramp-up in France, Turkey, Mexico, South America and Malaysia. Gemplus shipped 51 million payment microprocessor cards, with revenue up 29% year-on-year.

Fourth quarter returns from financial services showed a marked slowdown, however, as the positive effect of EMV roll-out was offset by cannibalisation of other payment and conventional cards. Payment microprocessor card revenue rose 12% year-on-year.

Looking ahead, Gemplus is expecting a growing contribution from its recently-introduced MasterCard OneSmart PayPass card, offering both contact and contactless payment transactions. Contactless smartcard payment solutions are expected to drive a significant portion of the future payment market, although large volume shipments are unlikely any time soon.

Comments: (0)