Xiring, a security solution provider for remote transactions, has announced an operating margin of 9.8% as of 30 June 2007, which is higher than the minimum objective set for the financial year (> 7%).
The company is revising its objectives for the full year 2007 to a sales growth of 70% (vs. 30% indicated in the beginning of 2007), and an operating margin of nearly 9%.
Sales of €8.17 million to 30 June 2007 are up 38%, boosted by the takeoff in the banking market.
XIRING has reported sales of €8.17 million to 30 June 2007, which is up 38% compared to the first half of 2006. This growth is principally due to the strong increase in sales to banks, where sales of €2.9 million Euros were multiplied by five compared to the first half of 2006. The take-off of the banking authentication market is confirmed in Europe, in particular in the United Kingdom where XIRING ranks as market leader. The healthcare business also rose, by 9%, achieving sales of €3.9 million.
Operating profitability of 9.8% over the half year, which is higher than the annual objective.
With an operating income of €0.8 million up to 30 June 2007, XIRING reported an operating margin of 9.8% over the 6 month period, which is higher than the objective set for the financial year (>7%). This level of operating profitability was achieved whilst strengthening its marketing, sales and R&D investments. In the first 6 months of 2006, an unusual product mix had generated an exceptionally strong operating margin (15.3%), levelling out in the following six months to reach 8.6% for the full 2006 financial year.
On its balance sheet, XIRING has demonstrated an extremely healthy financial situation as of 30 June 2007, with €9.9 million in stockholder equity and a net debt of €3.7 million. The first half-year operations cash flow amounted to €1.3 million.
Highly favourable outlook for 2007
XIRING's latest sales growth forecast for the 2007 financial year is over 70% (vs. +30%), and operating margin of around 9%. This revision is based in particular on confirmed contracts in the United Kingdom.
XIRING is continuing its efforts to support the take-off of the world banking authentication market.