21 August 2017
visit www.avoka.com

Gemplus posts lower Q2 earnings

27 July 2006  |  1122 views  |  0 Source: Gemplus International

Gemplus International S.A. (Euronext: - GEM and NASDAQ: GEMP), a world leading provider of secure card solutions, today reported results for the second quarter ended June 30, 2006.

Second quarter 2006 highlights:

  • Net sales up 4.7% showing good growth in ID & Security and Financial Services
  • Gross margin at 32.0% reflecting strong price pressure in wireless
  • Operating margin at 6.4%, sustained by good control of operating expenses
  • Attributable net income: 15.1 million euros
  • Growth was driven by ID & Security and Financial Services, including good contribution from Setec


On a geographical basis, ID & Security and Financial Services drove a 8.3% year-on-year revenue growth in the Americas, after adjusting for currency fluctuations, acquisitions and disposals. Adjusted[4] net sales in Asia increased by 0.9%, year-on-year, and were down 10.4% in EMEA[5], due to Wireless.

Gross margin was influenced by strong wireless price pressure, a shift in the business mix and the release of a provision for a patent claim.

Operating margin was 6.4%, sustained by good control of operating expenses. Excluding the reversal of a 5.2 million euros litigation provision booked last year, operating expenses were up only 0.6% year-over-year despite the Setec acquisition; as a percentage of sales, they actually decreased by 1.0 percentage point year-over-year.

Balance sheet and cash flow statement

Second quarter 2006 highlights:

  • Free cash outflow of 34.3 million euros
  • Net cash outflow of 201.6 million euros reflecting distribution of reserves to shareholders


The Group's cash position remains strong at 208.3 million euros. Compared to March 31, 2006, cash is down 201.6 million euros, largely due to a 164.4 million euros outflow related to the distribution of reserves (share premium) to shareholders. Free cash outflow of 34.3 million euros reflects an increase in accounts receivable due to strong sales in June and increased capital expenditures of 19.0 million euros in anticipation of strong volumes for the second half 2006.

Outlook

The Group continues to see strong momentum in its core segments and will maintain its focus on cost efficiency.

Gemplus confirms that it is actively working to achieve 10% operating margin in 2007, before taking into account the effects of the combination with Gemalto.

The Group remains confident in its ability to further improve its operating income in 2006 taking into account the usual seasonality effect of stronger organic growth in the second half than in the first half.» Download the document now 43.3 kb (Adobe Acrobat Document)

Comments: (0)

Comment on this story (membership required)

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.niceactimize.comvisit www.worldpaymentsreport.comvisit www.dorsum.eu

Top topics

Most viewed Most shared
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
10592 views comments | 24 tweets | 23 linkedin
hands typing furiouslyWhy Is Risk Analytics Important?
8854 views 0 | 5 tweets | 1 linkedin
Norwegian banks and startups form fintech clusterNorwegian banks and startups form fintech...
8846 views comments | 19 tweets | 23 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
8513 views comments | 10 tweets | 7 linkedin
Barclays pairs banking data with third party apps for SmartBusiness DashboardBarclays pairs banking data with third par...
8212 views comments | 18 tweets | 16 linkedin

Featured job

Find your next job