Gemplus Reports Strong Second Quarter 2005 Results: Operating Income More Than Triples
Luxembourg (ots/PRNewswire)
Second quarter 2005 highlights:
- Operating income more than tripled, to 22.4 million euros.
- Strong revenue growth in all core businesses: up 12.2%
year-on-year, even in comparison to robust sales in the quarter a
year ago.
- Highest gross margin in 4 years: 33.9%, up 1.6 percentage point
year-on-year.
- Large improvement in attributable net income: 21.8 million euros.
- Setec acquisition finalized.Gemplus International S.A. (Euronext: LU0121706294 - GEM and NASDAQ: GEMP), the world's leading provider of smart card solutions, today reported results for the second quarter ended June 30, 2005.
In millions of euros Q2 2005 Q2 2004 Year-on-year
change
Net sales 236.2 210.5 +12.2%
Adjusted for currency fluctuations, +11.3%
disposals and acquisitions[1]
Gross profit 80.0 68.0 +17.6%
Gross margin 33.9% 32.3% +1.6 ppt
Operating expenses 57.6 61.2 -5.8%
Operating income 22.4 6.8 +227.7%
Operating margin 9.5% 3.2% +6.3 ppts
Attributable net income 21.8 1.1 NM
Free cash flow excluding 23.7 5.7 +318.8%
non-recurring items[2]
Cash and cash equivalents 373.5 383.1 -2.5%
Per share data (in euros)
Earnings per share (fully diluted) 0.04 0.00 NMCommenting on the performance for the second quarter 2005, Alex Mandl, President and Chief Executive Officer, said: "This was the ninth consecutive quarter of continuous strong progress for Gemplus, highlighted by a threefold increase in operating income. The top line grew at a double digit rate, even though we had strong sales for the quarter a year ago. This confirms the positive outlook we have for the remainder of the year. We are also very pleased with the strong customer endorsement of our quantum-leap technology, GemXplore Generations. Regarding ID & Security, the doubling of revenues supports our confidence and strong emphasis on this market."
Second quarter 2005 financial review
- Income statement
Second quarter 2005 highlights:
- Strong revenue growth led by the Americas and EMEA[3]: up
11.3%, adjusted[4].
- Highest gross margin in 4 years: 33.9%, up 1.6 percentage
points year-on-year.
- Operating income more than tripled to 22.4 million euros.
- Large improvement in attributable net income: 21.8 million
euros.Net sales rose 11.3% year-on-year, even compared to robust sales in the second quarter 2004, which were up 25% year-on-year, after adjusting for currency fluctuations, acquisitions and disposals. Sales grew in all core businesses.
On a geographical basis, wireless drove a 50.7% year-on-year revenue growth in the Americas, after adjusting for currency fluctuations, acquisitions and disposals. In EMEA, adjusted net sales increased by 5.4%, year-on-year, and were down 15.7% in Asia.
Gross margin was up 1.6 percentage point year-on-year, to 33.9%, the highest in 4 years. This was driven by a favorable business mix and improved manufacturing efficiency.
Operating expenses[5] decreased 5.8% year-on-year to 57.6 million euros, mainly due to the reversal of a 5.2 million euros litigation provision. Excluding this reversal and the consolidation of Setec, operating expenses were stable.
Consequently, operating margin tripled to 9.5%. Excluding the reversal of the litigation provision, operating margin was 7.3%, up 4.1 percentage points.
Attributable net income grew to 21.8 million euros.
- Balance sheet and cash flow statement
Second quarter 2005 highlights:
- Robust free cash flow before non-recurring items of 23.7
million euros.
- Continuous strong cash position, at 373.5 million euros.The Group's cash position remains strong at 373.5 million euros. Compared to March 31, 2005, cash is down 21.6 million euros, reflecting a 58 million euros net outflow related to the acquisition of Setec, partly compensated by the release of 22.5 million euros from an escrow account in relation to the successful outcome of a litigation.
Segment analysis
- Telecom
Second quarter 2005 highlights:
- Record sales in wireless: shipments up 44% year-on-year, to
85.8 million units.
- Wireless gross margin remains strong: above 40%.
- Strong improvement in operating margin: up 3.0 percentage
points to 12.9%, reflecting strong revenue growth in wireless and
flat operating expenses. In millions of euros Q2 2005 Q2 2004 % change Adjusted
Change[4]
(%)
Wireless products & services net sales 150.2 135.0 +11.3% +13.0%
Wireless gross profit 60.6 54.2 +11.8%
Wireless gross margin 40.4% 40.2% +0.2 ppt
Prepaid phone cards & scratchcards net 13.0 19.0 -31.6% N/A
sales
Prepaid phone cards & scratchcards 0.8 0.9 -7.3%
gross profit
Prepaid phone cards & scratchcards 6.4% 4.7% +1.7 ppts
gross margin
Telecom net sales 163.2 154.0 +6.0% +6.7%
Telecom gross profit 61.4 55.1 +11.5%
Telecom gross margin 37.6% 35.8% +1.8 ppts
Telecom operating expenses 40.3 39.9 +1.2%
As a % of sales 24.7% 25.9% -1.2 ppt
Telecom operating profit 21.1 15.2 +38.5%
Operating margin 12.9% 9.9% +3.0 pptsWireless continues to grow significantly. Adjusted4 revenue increased 13.0% year-on-year, even compared to strong sales in the second quarter 2004, which were up 45.5% year-on-year[4].
Wireless shipments grew 44% year-on-year to 85.8 million units, driven by market share gains in North and Latin America, and in emerging markets in EMEA.
Wireless product mix continued to improve: the share of high-end card shipments rose significantly year-on-year, accounting for 48% of the total in the second quarter 2005, compared with 33% in the second quarter 2004 and 44% in the first quarter 2005.
Wireless average selling price (ASP) was down 20.6% year-on-year and 10.9% quarter-on-quarter, both currency adjusted. Product mix improvement did not fully compensate for strong price pressure.
Wireless gross margin was stable year-on-year, due to stronger volume, lower chip purchasing prices and improved manufacturing efficiency, compensating for price pressure.
Telecom gross margin improved 1.8 percentage points year-on-year, led by a more favorable business mix.
Operating expenses were almost flat year-on-year. Therefore, operating profit rose 38.5% and the operating margin was up 3.0 percentage points, to 12.9%.
- Financial Services
Second quarter 2005 highlights:
- Strong revenue growth: +16%, adjusted[4].
- The EMV[6] deployment continues: broad activity in all regions. In millions of euros Q2 2005 Q2 2004 % change Adjusted
Change[4]
(%)
Net sales 50.3 44.7 +12.4% +16.0%
Gross profit 10.2 8.8 +15.7%
Gross margin as a % of sales 20.3% 19.7% +0.6 ppt
Operating expenses 7.3 13.5 -46.2%
As a % of sales 14.4% 30.2% -15.8 ppts
Operating profit 2.9 -4.7 NM
Operating margin as a % of sales 5.8% -10.5% +16.3 pptsBank cards continued to grow very strongly, driven by broad activity in EMV deployment across all regions, particularly in the UK and Turkey. This quarter saw the first EMV shipments by Gemplus to the Netherlands, Italy and Japan.
In total, Gemplus shipped 16.8 million units of payment microprocessor cards, up 30% year-on-year. Payment microprocessor card revenue rose 31% year-on-year.
The decline in operating expenses reflects the impact of the reversal of a 5.2 million euros provision related to a litigation.
- Identity and Security
Second quarter 2005 highlights:
- Revenue almost doubled, year-on-year.
- A major milestone was achieved in the UAE national ID project. In millions of euros Q2 2005 Q2 2004 % change Adjusted
Change[4]
(%)
Net sales 22.7 11.8 +92.1% +66.5%
Gross profit 8.4 4.1 +103.9%
Gross margin as a % of sales 37.1% 34.9% +2.2 ppts
Operating expenses 10.0 7.8 +28.1%
As a % of sales 44.3% 66.5% -22.2 ppts
Operating profit -1.6 -3.7 NM
Operating margin as a % of sales -7.3% -31.6% +24.3 pptsRevenue almost doubled, led by shipment of ID cards to the United Arab Emirates and the acquisition of Setec, which is consolidated starting June 1st, 2005.
Even excluding Setec, this quarter is the best quarter ever for this segment, with a 66.5% revenue growth after adjusting for currency fluctuations, acquisitions and disposals. This was mainly driven by substantial high-end card deliveries: UAE and also Royal Oman Police, the US Department of Defense and Boeing.
The increase in operating expenses is mainly due to Setec.
First half 2005 financial review
- Net sales up 5.3%, despite robust sales a year ago.
- Gross margin up 1.4 percentage points, to 33.1%.
- Operating income almost tripled, to 29.9 million euros. In millions of euros H1 2005 H1 2004 % change Adjusted
Change[4]
(%)
Net sales 429.3 407.8 +5.3% +4.6%
Of which Telecom 307.5 300.6 +2.3% +2.3%
Of which Financial Services 88.2 85.1 +3.7% +6.8%
Of which ID & Security 33.6 22.1 +51.8% +38.7%
Gross profit 141.9 129.3 +9.8% NA
Gross margin 33.1% 31.7% +1.4 ppts NA
Operating expenses 112.0 118.9 -5.8% NA
As a % of sales 26.1% 29.2% -3.1 ppts NA
Operating profit 29.9 10.4 +188.1%
Operating margin 7.0% 2.5% +4.5 ppts NA
Attributable net income 29.0 1.4 NMSales in the first half 2005 grew 5.3% compared to a year ago. All core businesses saw favorable revenue momentum.
On a geographical basis, wireless drove a 27.4% revenue growth in the Americas, after adjusting for currency fluctuations, acquisitions and disposals. In EMEA, adjusted revenue increased by 4.6% but was down 14.6% in Asia.
Gross margin was up 1.4 percentage points year-on-year, to 33.1%, reflecting a favorable business mix and improved manufacturing efficiency.
Operating expenses decreased 5.8% mainly driven by the reversal of a 5.2 million euros litigation provision.
Consequently, operating margin almost tripled to 7.0% and attributable net income quadrupled, to 29.0 million euros.
Outlook
The Group continues to see strong momentum in its core markets. Notwithstanding the apparent slow start in the first quarter, Gemplus expects to increase revenue, excluding acquisitions, by around 10% in 2005, despite continuous selling price pressure.
The Company continues to focus on cost efficiency and is confident to show very strong improvement on operating income in 2005.
The Group also expects the Financial Services and ID & Security business units to become profitable in 2006.
With excellent second quarter results, the Group proves it is well on track to realize its mid-term objective of a 10% operating margin in 2007.
Business Highlights
- Telecom
On the strength of Gemplus' quantum-leap technology, GemXplore Generations, which was launched in the first quarter 2005, the Company has been selected as the exclusive development partner by the T-Mobile group for its next generation card platform. This will be the basis for T-Mobile's future card and service deployment for its customers.
The SIM is increasingly valuable when linked to the wider network infrastructure via Over The Air (OTA) platforms. H3G Australia demonstrated this when it recently deployed a Gemplus OTA platform to link into the high end SIMs already at work on their 3G network. The first use of this platform was to update the preferred roaming lists in each subscriber's SIM, following a new national roaming agreement with another Australian operator.
In North America, Gemplus was selected by Cingular to provide (U)SIMs for their 3G migration. Cingular is currently using Gemplus' SIMs for Enhanced Network Selection and advanced data services for its GSM subscribers.
- Financial Services
Deployments of EMV made good headway, with several new contracts. In Mexico, Banco Azteca selected Gemplus to deliver biometric smart payment cards, which will store the customer's photographs and biometric data for identification purposes. In Italy, Setefi (Intesa Group) chose Gemplus for the country's first mass EMV deployment, with over one million smart payment cards for debit and credit payment applications to be supplied. During the second quarter, Gemplus started the delivery of a new EMV product for JCB, the largest credit card issuer in Japan.
In addition, MasterCard(R) International granted full certification to Gemplus for its GemInstant PayPassTM solution. This strongly positions Gemplus to take full advantage of the increasing interest from merchants and commercial partners in the MasterCard Paypass scheme in the US and other contactless payment initiatives worldwide.
- Identity and Security
In France, Gemplus will participate in the French Government's border control initiative, "Biodev", by supplying its GemBorder contactless smart card technology. The cards use ICAO-compliant contactless chip technology for electronic passports and visas and can be used for contactless authentication.
In the US, Gemplus continues to receive orders from leading systems integrators such as BearingPoint on behalf of Transportation Security Administration and EDS on behalf of several U.S. Federal Government agencies.
- Research and Development
At the JavaOneSM conference in San Francisco, Gemplus announced a new prototype for the future generation of JavaCardTM products, in a joint presentation with SUN Microsystems, Inc. Designed for use in all market sectors, the card represents Gemplus' vision of a universal node within any network architecture, facilitating the deployment of complex architectures and the dialogue with internet-based services.
Earnings calendar
Third quarter 2005 results are scheduled to be reported on October 26, 2005, before the opening of Euronext Paris.
Conference Call:
The Company has scheduled a conference call for Wednesday, 27 July 2005 at 2:00 pm CET (1:00 pm GMT and 8:00 am New-York time). Callers may participate in the live conference call by dialing:
+44-(0)-207-365-1850 or +1-718-354-1172 or +33-(0)-1-71-23-04-18
access code 6834417The slide show will be available on the web site at 12:30 CET (11:30 GMT). The webcast will also be available on the IR section of www.gemplus.com.
Replays of the conference call will be available approximately 3 hours after the conclusion of the conference call until August 10th, 2005 midnight by dialing:
+44 (0) 207 784 1024 or +1 718 354 11 12 or +33 (0) 1 71 23 02 48
access Code: 6834417#About Gemplus
Gemplus International S.A. (Euronext: LU0121706294 - GEM and NASDAQ: GEMP) is the world's leading player in the smart card industry in both revenue and total shipments (source: Gartner-Dataquest (2004), Frost & Sullivan, Datamonitor.). It has sold over 5 billion smart cards.
With security at its core, and 2400 patents and patent applications produced by its innovative R&D team, Gemplus delivers a wide range of portable, personalized solutions in areas including Identity, Mobile Telecommunications, Public Telephony, Banking, Retail, Transport, Healthcare, WLAN, Pay-TV, e-government and access control.
Gemplus' revenue in 2004 was 865 million euros.
www.gemplus.com
For more information:
Press Gemplus
Jane Strachey
Tel: +33-(0)-4-42-36-46-61
Mob: +33-(0)-6-76-49-35-93
Email: jane.strachey@gemplus.com
Investor Relations
Gemplus
Celine Berthier
Tel: +41-(0)-22-544-5054
Email: celine.berthier@gemplus.com
Edelman
Stephen Benzikie
Tel: +44-(0)-207-344-1325
Mob: +44-(0)-774-003-8929
Email: stephen.benzikie@edelman.com
Fineo
Tel: +33-(0)-1-56-33-32-31
Email: investors@gemplus.com(c)2005 Gemplus. All rights reserved. Gemplus, the Gemplus logo, are trademarks and service marks of Gemplus S.A. and are registered in certain countries. All other trademarks and service marks, whether registered or not in specific countries, are the property of their respective owners.
Some of the statements contained in this release constitute forward-looking statements. These statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activities, performance, or achievements expressed or implied by such forward-looking statements. Actual events or results may differ materially. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we 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 release include, but are not limited to: trends in wireless communication and mobile commerce markets; our ability to develop new technology, and the effects of competing technologies developed and expected intense competition generally in our main markets; profitability of our expansion strategy; challenges to or loss of our intellectual property rights; our ability to establish and maintain strategic relationships in our major businesses; our ability to develop and take advantage of new software and services; and the effect of future acquisitions and investments on our share price. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of such forward-looking statements. The forward-looking statements contained in this release speak only as of this release. We are under no duty to update any of the forward-looking statements after this date to conform such statements to actual results or to reflect the occurrence of anticipated results.
[1] Setec is consolidated starting June 1st, 2005
[2] Free cash flow excluding non recurring items is defined as net cash flow from operating activities less the purchase of property, plant and equipment and other investments related to the operating cycle (excluding acquisitions and financial investments).
[3] Europe, Middle-East, Africa
[4] After adjusting for currency fluctuations, acquisitions and disposals.
[5] Includes 2.1 million euros of goodwill amortization and restructuring expenses in the second quarter 2004, and the expensing of stock options from the first quarter 2005.
[6] EMV is a jointly defined set of specifications adopted by Europay, MasterCard and Visa for the migration of bank cards to smart card technology.
Gemplus International SA
Press Release - Financial statements
For the quarterly period ended June 30, 2005 Consolidated Statements of Income
(in
thousands of
euros,
except
shares and
per share
amounts)
Three months ended Six months ended
June 30, June 30,
2005 2004 2005 2004
(unaudited) (unaudited)
Net sales 236,158 210,538 429,260 407,827
Cost of sales (156,129) (142,512) (287,339) (278,553)
Gross Profit 80,029 68,026 141,921 129,274
Research and (16,421) (16,341) (29,403) (32,446)
development
expenses
Selling and (28,679) (26,152) (54,387) (50,382)
marketing
expenses
General and (12,352) (16,623) (28,453) (32,284)
administrative
expenses
Restructuring 478 (161) 916 27
expenses
Other operating (666) - (718) -
income
(expense), net
Goodwill - (1,919) - (3,822)
amortization and
impairment
Operating income 22,389 6,830 29,876 10,367
Financial income 1,681 1,474 3,477 2,807
(expense), net
Share of profit (9) (1,189) (833) (3,956)
(loss) of
associates
Other (266) (3,039) 98 (2,754)
non-operating
income
(expense), net
Income before 23,795 4,076 32,618 6,464
taxes
Income tax (1,242) (2,251) (2,946) (3,726)
expense
NET INCOME 22,553 1,825 29,672 2,738
Attributable to:
Equity holders 21,760 1,073 29,003 1,403
of the Company
Minority 793 752 669 1,335
interest
Net income per share attributable to equity holders of the
Company (in euros)
Basic 0.04 0.00 0.05 0.00
Diluted 0.04 0.00 0.05 0.00
Shares used in net income per share
calculation:
Basic 611,014,686 606,862,474 609,027,112 606,435,835
Diluted 624,130,718 619,719,484 623,269,017 621,135,793
Due to the adoption of IAS 1 (revised 2003) Presentation of
Financial Statements, the Company has modified its Consolidated Balance
Sheet and its Consolidated Statement of Income.
Please refer to Note 2.23 "Comparatives" of our 2004 Annual
Report for further details. Consolidated Balance Sheets
(in thousands
of euros)
June 30, 2005 December 31,
2004
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents 373,527 388,430
Trade accounts receivable, 181,396 148,512
net
Inventory, net 111,790 115,610
Derivative financial 3,407 33,387
instruments
Other current receivables 75,420 66,160
Total current assets 745,540 752,099
Non-current assets:
Property, plant and 157,212 148,916
equipment, net
Customer contracts and 17,911 -
technology, net
Goodwill, net 87,664 28,197
Deferred development costs, 20,487 19,222
net
Other intangible assets, net 7,243 8,965
Deferred tax assets 7,270 6,264
Investments in associates 18,970 12,864
Available-for-sale financial 5,178 4,752
assets, net
Other non-current 46,087 43,900
receivables, net
Total non-current assets 368,022 273,080
TOTAL ASSETS 1,113,562 1,025,179
LIABILITIES
Current liabilities:
Accounts payable 107,711 94,025
Salaries, wages and related 50,078 55,199
items
Current portion of provisions 76,901 50,217
and other liabilities
Current income tax 30,322 25,708
liabilities
Current obligations under 5,833 6,005
finance leases
Total current liabilities 270,845 231,154
Non-current liabilities:
Non-current obligations under 30,650 33,663
finance leases
Non-current portion of 26,131 25,696
provisions
Other non-current liabilities 16,786 13,353
Total non-current liabilities 73,567 72,712
Shareholders' equity:
Ordinary shares 132,925 128,643
Additional paid-in capital 1,068,100 1,031,558
Retained earnings (434,771) (459,560)
Other comprehensive income (6,748) 11,956
Less, cost of treasury shares (1,985) (1,985)
Equity attributable to equity 757,521 710,612
holders of the Company
Minority interest 11,629 10,701
Total shareholders' equity 769,150 721,313
TOTAL LIABILITIES AND 1,113,562 1,025,179
SHAREHOLDERS' EQUITY
Due to the adoption of IAS 1 (revised 2003) Presentation of Financial
Statements, the Company has modified its Consolidated Balance Sheet and
its Consolidated Statement of Income.
Please refer to Note 2.23 "Comparatives" of our 2004 Annual Report for
further details. Consolidated Statements of Cash Flows
(in thousands of euros)
Six months ended
June 30,
2005 2004
(unaudited)
Cash flows from operating
activities:
Net income 29,672 2,738
Adjustments to reconcile net income
to net cash from operating
activities:
Depreciation, amortization and 18,990 28,914
impairment
Changes in non-current portion of
provisions and other liabilities,
excluding restructuring 484 (144)
Deferred income taxes (1,478) 1,670
(Gain) / loss on sale and disposal 418 787
of assets
Share of (profit) loss of 772 3,956
associates
Other, net (1,471) (2,340)
Changes in operating assets and
liabilities:
Trade accounts receivable and (10,161) 4,485
related current liabilities
Trade accounts payable and related 4,375 16,125
current assets
Inventories 16,248 (24,609)
Value-added and income taxes (2,653) 11,764
Salaries, wages and other (11,445) 3,286
Restricted cash 23,427 (21,952)
Restructuring reserve payable (9,226) (19,410)
Litigation expense payable - -
Management severance expense - -
Provision for a loan to a former - -
director and executive
Net cash (used for) from operating 57,952 5,270
activities
Cash flows from investing
activities:
Sale / (Purchase) of activities net (60,123)
of cash disposed / acquired -
Other investments (758) (901)
Purchase of property, plant and (8,981) (9,677)
equipment
Purchase of other assets (850) (970)
Change in non-trade accounts 2,612 (288)
payable and other
Net cash used for investing (68,100) (11,836)
activities
Cash flows from financing
activities:
Proceeds from exercise of share 1,256 1,288
options
Payments on long-term borrowings
Payments on long-term borrowings (138) -
Proceeds from sales-leaseback - 957
operations
Principal payments on obligations (2,952) (2,857)
under finance leases
Increase (decrease) in bank (241) 831
overdrafts
Dividends paid by subsidiaries to (1,048) (1,214)
minority shareholders
Changes in non-trade accounts 133 -
payables on financing activities
Change in treasury shares - -
Interests receivable on loans to - -
senior management
Net cash (used for) from financing (2,990) (995)
activites
Effect of exchange rate changes on (1,765) 14
cash
Net increase (decrease) in cash and (13,138) (7,561)
cash equivalents
Cash and cash equivalents, 388,430 390,684
beginning of the period
Cash and cash equivalents, end of 373,527 383,137
the period1) Accounting principles:
The consolidated financial statements of the Company have been prepared in accordance with International Financial Reporting Standards (IFRS).
2) Segment information
2.1) Second Quarter 2005 compared with Second Quarter 2004
2.1.1) Operating Segments
Three months ended (in millions of euros)
June June
30, 30, Adjusted change (%)
Net sales 2005 2004 % change (1)
Telecommunications 163.2 154.0 6% 7%
Financial Services 50.3 44.7 13% 16%
Identity and
Security 22.7 11.8 92% 67%
Total 236.2 210.5 12% 11%
(in millions of euros)
June (% of June (% of
30, net 30, net
Gross profit 2005 sales) 2004 sales) % change
Telecommunications 61.4 38% 55.1 36% 12%
Financial Services 10.2 20% 8.8 20% 16%
Identity and
Security 8.4 37% 4.1 35% 104%
Total 80.0 34% 68.0 32% 18%
(in millions of euros)
June (% of June (% of
30, net 30, net
Operating expenses 2005 sales) 2004 sales) % change
Telecommunications (40.3) 25% (39.9) 26% 1%
Financial Services (7.3) 14% (13.5) 30% -46%
Identity and
Security (10.0) 44% (7.8) 66% 28%
Total (57.6) 24% (61.2) 29% -6%
(in millions of euros)
June June
Operating income 30, 30, Change in Operating
(loss) 2005 2004 income (loss)
Telecommunications 21.1 15.2 5.9
Financial Services 2.9 (4.7) 7.6
Identity and
Security (1.6) (3.7) 2.1
Total 22.4 6.8 15.6
(1) Adjusted for currency fluctuations, disposals & acquisitions
2.1.2) Geographical Segments
Three months ended (in millions of euros)
June June
30, 30, Adjusted change (%)
Net sales 2005 2004 % change (1)
Europe, Middle
East and Africa 121.0 109.6 10% 5%
Asia 41.6 50.1 -17% -16%
Americas 73.6 50.8 45% 51%
Total 236.2 210.5 12% 11% 2.2) First-half 2005 compared with First-half 2004
2.2.1) Operating Segments
Six months ended (in millions of euros)
June June
30, 30, Adjusted change (%)
Net sales 2005 2004 % change (1)
Telecommunications 307.5 300.6 2% 2%
Financial Services 88.2 85.1 4% 7%
Identity and
Security 33.6 22.1 52% 39%
Total 429.3 407.8 5% 5%
(in millions of euros)
June (% of June (% of
30, net 30, net
Gross profit 2005 sales) 2004 sales) % change
Telecommunications 113.7 37% 104.8 35% 9%
Financial Services 16.0 18% 18.0 21% -11%
Identity and
Security 12.2 36% 6.5 29% 87%
Total 141.9 33% 129.3 32% 10%
(in millions of euros)
June (% of June (% of
30, net 30, net
Operating expenses 2005 sales) 2004 sales) % change
Telecommunications (76.1) 25% (77.7) 26% -2%
Financial Services (17.7) 20% (25.4) 30% -30%
Identity and
Security (18.2) 54% (15.8) 72% 15%
Total (112.0) 26% (118.9) 29% -6%
(in millions of euros)
June June
Operating income 30, 30, Change in Operating
(loss) 2005 2004 income (loss)
Telecommunications 37.6 27.1 10.5
Financial Services (1.7) (7.4) 5.7
Identity and
Security (6.0) (9.3) 3.3
Total 29.9 10.4 19.5
(1) Adjusted for currency fluctuations, disposals & acquisitions
2.2.2) Geographical Segments
Six months ended (in millions of euros)
June June
30, 30, Adjusted change (%)
Net sales 2005 2004 % change (1)
Europe, Middle
East and Africa 220.4 206.0 7% 5%
Asia 87.9 103.2 -15% -15%
Americas 121.0 98.6 23% 27%
Total 429.3 407.8 5% 5%Contact:
Press Gemplus: Jane Strachey, Tel: +33-(0)-4-42-36-46-61, Mob:
+33-(0)-6-76-49-35-93, Email: jane.strachey@gemplus.com; Investor
Relations, Gemplus, Celine Berthier, Tel: +41-(0)-22-544-5054, Email:
celine.berthier@gemplus.com; Edelman, Stephen Benzikie, Tel:
+44-(0)-207-344-1325, Mob: +44-(0)-774-003-8929, Email:
stephen.benzikie@edelman.com; Fineo, Tel: +33-(0)-1-56-33-32-31,
Email: investors@gemplus.com