Gemplus Reports Strong Third Quarter 2005 Results
Luxembourg (ots/PRNewswire)
- Operating Margin Well on Track to Reach 2007 10% Target
LUXEMBOURG, October 26 /PRNewswire/ --
- Third Quarter 2005 Highlights:
- Substantial improvement in operating margin, to 8.6%.
- Robust growth in all core businesses: net sales up 15.5% year-on-year (incl. Setec).
- Strong increase in attributable net income, to 20.9 million euros.
- Solid free cash flow of 28.2 million euros, excluding non-recurring items.
LUXEMBOURG, October 26 /PRNewswire/ --
Gemplus International S.A. (Euronext: LU0121706294 - GEM and NASDAQ: GEMP), the world's leading provider of smart card solutions, today reported results for the third quarter ended September 30, 2005.
In millions of euros Q3 2005 Q3 2004 Year-on-year
change
Net sales 247.9 214.7 +15.5%
Adjusted for currency fluctuations, +7.5%
disposals and acquisitions
Gross profit 82.8 64.0 +29.4%
Gross margin 33.4% 29.8% +3.6 ppts
Operating expenses 61.5 64.1 -4.1%
Operating income 21.3 -0.2 NM
Operating margin 8.6% -0.1% +8.7 ppts
Attributable net income 20.9 -8.5 NM
Free cash flow excluding 28.2 12.2 +131.6%
non-recurring items(1)
Cash and cash equivalents 400.8 389.2 +3.0%
Per share data (in euros)
Earnings per share (fully diluted) 0.03 -0.01 NMCommenting on the performance for the third quarter 2005, Alex Mandl, President and Chief Executive Officer, said: "This was the tenth consecutive quarter of continuous strong progress for Gemplus. The top line grew at 15%, with robust growth in all core businesses. Year-to-date operating income grew fivefold. With an operating margin of 8.6% for the third quarter 2005, our 2007 target of 10% is clearly within our reach. Moreover, our quantum-leap technology, GemXplore Generations, is receiving strong customer response. We therefore continue to be very optimistic about the long-term growth prospects for our Group."
Third quarter 2005 financial review
- Income statement
Third quarter 2005 highlights:
- Robust growth led by the Americas and EMEA(2): +15.5%.
- Continuous progress in gross margin: 33.4%, up 3.6 percentage points year-on-year.
- Substantial increase in operating margin, to 8.6%.
- Strong increase in attributable net income, to 20.9 million euros.
Net sales rose 15.5% year-on-year, reflecting strong growth in all core businesses and the consolidation of Setec. Adjusted for currency fluctuations, disposals and acquisitions, revenue was up 7.5%.
On a geographical basis, Wireless drove a 36.5% year-on-year growth in revenue in the Americas, after adjusting for currency fluctuations, acquisitions and disposals. In EMEA, adjusted(3) net sales increased by 1.9%, year-on-year, and were down 13.7% in Asia.
Gross margin was up 3.6 percentage points year-on-year, to 33.4%. This was driven by strong improvement in Wireless and a more favorable business mix.
Operating expenses(4) decreased 4.1% year-on-year to 61.5 million euros, even with the consolidation of Setec.
Operating income grew substantially to 21.3 million euros, leading to an operating margin of 8.6%.
Foreign exchange losses, mainly related to cost of hedging, were fully compensated by net capital gains on equity investments.
Attributable net income is 20.9 million euros, i.e. a 29.4 million euros increase year-on-year.
- Balance sheet and cash flow statement
Third quarter 2005 highlights:
- Solid free cash flow of 28.2 million euros, excluding non-recurring items.
- Strong cash position improved, to 400.8 million euros.
Compared to June 30, 2005, cash is up 27.3 million euros, reflecting profitability improvement and sound management of working capital.
Segment analysis
- Telecom
Third quarter 2005 highlights:
- Record sales in Wireless: shipments up 43% year-on-year, to 87.6 million units.
- Rapid development of 3G in Europe.
- Sustained Wireless gross margin above 40%.
- Substantial improvement in operating margin: up 2.4 percentage points to 15.1%.
In millions of euros Q3 2005 Q3 2004 % change Adjusted
Growth(3)
(%)
Wireless products & services net sales 154.0 131.1 +17.5%
Wireless gross profit 62.3 50.3 +23.9%
Wireless gross margin 40.4% 38.3% +2.1 ppts
Prepaid phone cards & scratchcards net 13.5 22.1 -39.0%
sales
Prepaid phone cards & scratchcards 0.9 1.4 -35.1%
gross profit
Prepaid phone cards & scratchcards 6.7% 6.3% +0.4 ppt
gross margin
Telecom net sales 167.5 153.2 +9.3% +7.3%
Telecom gross profit 63.2 51.7 +22.3%
Telecom gross margin 37.7% 33.7% +4.0 ppts
Telecom operating expenses 37.9 32.3 +17.6%
As a % of sales 22.6% 21.0% +1.6 ppt
Telecom operating income 25.3 19.4 +30.2%
Operating margin 15.1% 12.7% +2.4 pptLUXEMBOURG, October 26 /PRNewswire/ --
Wireless continued to enjoy strong growth:
- Currency adjusted revenue increased 17.6% year-on-year.
- Shipments rose 43% year-on-year to 87.6 million units, reflecting strong sales notably in the Americas and EMEA.
- Product mix continued to improve: the share of high-end card shipments rose significantly year-on-year, accounting for 47% of the total in the third quarter 2005, compared with 30% a year ago.
- Average selling price (ASP) was down 19.4% year-on-year and 2.4% quarter-on-quarter, both currency adjusted.
Wireless gross margin improved 2.1 percentage points year-on-year, led by stronger volume, favorable product and regional mix, lower chip purchasing prices and improved manufacturing efficiency, offsetting ongoing price pressure. Combined with a more profitable business mix, this drove a 4.0 percentage point improvement in Telecom gross margin.
Operating expenses rose 4%, excluding the release of a 4.1 million euros restructuring provision a year ago.
Operating income increased 30% and operating margin was up 2.4 percentage points, to 15.1%.
- Financial Services
Third quarter 2005 highlights:
- Accelerated EMV(5) deployment in Continental Europe.
- Positive operating income.
In millions of euros Q3 2005 Q3 2004 % change Adjusted(3)
change (%)
Net sales 58.9 53.0 +11.1% +1.2%
Gross profit 13.7 10.1 +36.2%
Gross margin as a % of sales 23.3% 19.0% +4.3 ppts
Operating expenses 13.1 24.9 -47.4%
As a % of sales 22.2% 46.9% -24.7 ppts
Operating income 0.6 -14.8 NM
Operating margin as a % of sales 1.1% -27.9% NMNet sales were up 11% primarily driven by the consolidation of Setec. Payment microprocessor cards continued to see favorable momentum in the third quarter 2005, driven by sustained activity in EMV deployment across all regions. However, a one-time customer renewal program in the UK in the third quarter 2004, led to a modest year-on-year adjusted growth rate.
This quarter saw an acceleration of EMV deployment in Continental Europe and of EMV shipments to Japan.
In total, Gemplus shipped 22.1 million units of payment microprocessor cards, up 30% year-on-year. Payment microprocessor card revenue was up 12% year-on-year. The decline in ASP was led by a higher share of modules in the sales mix.
Operating expenses for the third quarter 2004 included 14.1 million euros for restructuring and goodwill amortisation. Therefore, excluding Setec, the one-time cost for the closure of an office, restructuring and goodwill amortisation, operating expenses for the third quarter 2005 were stable year-on-year.
- Identity and Security
Third quarter 2005 highlights:
- Revenue more than doubled year-on-year, reflecting the consolidation of Setec.
- Strong organic revenue growth3: +51.2%
- First shipments of e-passport datapages to be issued in Norway and Sweden, the first two countries in the world to issue mandatory e-passports nationwide.
In millions of euros Q3 2005 Q3 2004 % change Adjusted(3)
change (%)
Net sales 21.5 8.5 +154.5% +51.2%
Gross profit 5.9 2.2 +162.5%
Gross margin as a % of sales 27.4% 26.6% +0.8 ppt
Operating expenses 10.5 7.0 +50.1%
As a % of sales 48.8% 83.0% -34.2 ppts
Operating income -4.6 -4.8 NM
Operating margin as a % of sales -21.3% -56.2% +34.9 pptsOrganic revenue growth was mainly driven by sales to government agencies in the US and Corporate Security in Europe.
The increase in operating expenses is mainly attributable to the consolidation of Setec.
Year-to-date 2005 financial review
- Net sales up 8.8%, robust growth in all core business.
- Gross margin up 2.2 percentage points, to 33.2%.
- Operating income grew fivefold, to 51 million euros.
- Strong increase in attributable net income, to 50 million euros
In millions of euros YTD 2005 YTD 2004 % change Adjusted(3)
change (%)
Net sales 677.2 622.5 +8.8% +5.6%
of which Telecom 474.9 453.9 +4.6% +4.0%
of which Financial Services 147.1 138.0 +6.5% +4.7%
of which ID & Security 55.2 30.6 +80.4% +41.6%
Gross profit 224.7 193.2 +16.3% NA
Gross margin 33.2% 31.0% +2.2 ppts NA
Operating expenses 173.5 183.0 -5.2% NA
As a % of sales 25.6% 29.4% -3.8 ppts NA
Operating income 51.1 10.2 +400.8%
Operating margin 7.6% 1.6% +6.0 ppts NA
Attributable net income 49.9 -7.1 NMYear-to-date sales grew 8.8% with strong growth in all core businesses.
On a geographical basis, Wireless drove a 30.7% revenue increase in the Americas, after adjusting for currency fluctuations, acquisitions and disposals. In EMEA, adjusted3 revenue rose by 2.8% but was down 14.4% in Asia.
Gross margin was up 2.2 percentage points year-on-year, to 33.2%, reflecting a more favorable business mix as well as improved manufacturing efficiency.
Operating expenses continue to be under control. A 3% increase, excluding restructuring charges and goodwill amortisation, but including Setec, compares favorably with the almost 9% growth in revenue.
Operating income grew fivefold to 51.1 million euros, with an operating margin of 7.6%.
Attributable net income jumped to 49.9 million euros, a 57.1 million euros increase year-on-year.
Outlook
The Group continues to see strong momentum in its core businesses. Including Setec, Group revenue growth in 2005 will clearly exceed 10%.
Sales of phone and scratch cards are decreasing faster than expected. Therefore, overall Gemplus organic revenue growth in 2005 will be lower than the 10% growth expectation indicated earlier. Nonetheless, excluding those businesses, organic revenue growth will be noticeably above 10%.
With excellent third quarter results and a 7.6% operating margin year-to-date, the Company remains confident in its ability to show very strong improvement in operating income in 2005.
The Group also continues to expect the Financial Services and ID & Security business units to turn profitable in 2006.
Gemplus intends to remain consistently focused on profitable growth and cost efficiency. The Group continues to expect double digit revenue growth for the coming years and confirms that it is well on track to achieve its mid-term objective of a 10% operating margin in 2007.
Business Highlights
- Financial Services
On the EMV side, Gemplus delivered multi-application EMV smart card microprocessor modules in mass volume to JCB, the largest card issuer in Japan. Similarly, Gemplus was selected to deliver its new generation of off-line smart banking cards, compliant with the latest MasterCard(R) specifications for EMV, for the Russian bank, Surgutneftegazbank. Both projects use the DDA(6) authentication method.
In addition, Gemplus was selected to deliver its GemInstant cards, which are MasterCard PaypassTM compliant, to one of the top 10 US banks for their contactless payment program.
Finally, Gemplus delivered the first translucent payment cards in volume for the Groupe Caisse d'Epargne. The cards, called GemLucence, with their mandarin-tinted transparent card body, have been specifically designed to appeal to the youth market. The project shows that Gemplus includes marketing innovation alongside technological innovation in order to help its clients attract new customers and reduce churn.
Earnings calendar
Fourth quarter 2005 results are scheduled to be reported on Thursday February 9, 2006, before the opening of Euronext Paris.
Conference Call:
The Company has scheduled a conference call for Wednesday, 26 October 2005 at 2:30 pm CET (1:30 pm GMT and 8:30 am New-York time). Callers may participate in the live conference call by dialing:
+44(0)207-365-1849 or +1-718-354-1172 or +33(0)1-71-23-04-18
access code 6141137
The 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 live conference call until November 8th, 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: 6141137#
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, personalised 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 Investor Relations
Jane Strachey Gemplus
Tel: +33(0)4-42-36-46-61 Celine Berthier
Mob: +33(0)6-76-49-35-93 Tel: +41(0)22-544-5054
Email: jane.strachey@gemplus.com Email: celine.berthier@gemplus.com
Edelman
Frederic Boullard Fineo
Tel: +33(0)1-56-69-73-95 Tel: +33(0)-1-56-33-32-31
Email:
frederic.boullard@edelman.com 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.
Gemplus International SA
Press Release - Financial statements
For the quarterly period ended September 30, 2005Consolidated Statements of Income
(in thousands of euros, except shares and per share amounts)
Three months ended Nine months ended
September 30, September 30,
2005 2004 2005 2004
(unaudited) (unaudited)
Net sales 247,912 214,665 677,172 622,492
Cost of sales (165,153)(150,702) (452,492)(429,255)
Gross Profit 82,759 63,963 224,680 193,237
Research and development expenses (14,984) (15,253) (44,387) (47,699)
Selling and marketing expenses (29,850) (23,982) (84,236) (74,364)
General and administrative expenses (17,548) (14,313) (46,001) (46,597)
Restructuring expenses 606 (8,638) 1,522 (8,611)
Other operating income (expense), net 279 (1) (439) -
Goodwill amortisation and impairment - (1,926) - (5,748)
Operating income 21,262 (150) 51,139 10,218
Financial income (expense), net 1,894 1,482 5,370 4,289
Share of profit (loss) of associates (360) (1,067) (1,193) (5,023)
Other non-operating income
(expense), net (27) (1,844) 71 (4,599)
Income before taxes 22,769 (1,579) 55,387 4,885
Income tax expense (1,457) (6,551) (4,403) (10,277)
NET INCOME 21,312 (8,130) 50,984 (5,392)
Attributable to:
Equity holders of the Company 20,873 (8,535) 49,876 (7,132)
Minority interest 439 405 1,108 1,740
Net income per share
attributable to equity
holders of the Company (in euros)
Basic 0.03 (0.01) 0.08 (0.01)
Diluted 0.03 (0.01) 0.08 (0.01)
Shares used in net income per
share calculation:
Basic 627,085,562 606,882,853 615,046,595 606,584,841
Diluted 645,019,286 606,882,853 630,519,467 606,584,841Due 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)
September 30, December 31,
2005 2004
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents 400,826 388,430
Trade accounts receivable, net 174,686 148,512
Inventory, net 120,637 115,610
Derivative financial instruments 5,393 33,387
Other current receivables 78,708 66,160
Total current assets 780,250 752,099
Non-current assets:
Property, plant and equipment, net 158,863 148,916
Customer contracts and technology, net 19,491 -
Goodwill, net 90,002 28,197
Deferred development costs, net 22,755 19,222
Other intangible assets, net 6,261 8,965
Deferred tax assets 7,053 6,264
Investments in associates 16,553 12,864
Available-for-sale financial assets, net 2,554 4,752
Other non-current receivables, net 47,781 43,900
Total non-current assets 371,313 273,080
TOTAL ASSETS 1,151,563 1,025,179
LIABILITIES
Current liabilities:
Accounts payable 114,970 94,025
Derivative financial instruments 3,795 -
Salaries, wages and related items 54,752 55,199
Current portion of provisions and
other liabilities 77,087 50,217
Current income tax liabilities 30,454 25,708
Current obligations under finance leases 5,688 6,005
Total current liabilities 286,746 231,154
Non-current liabilities:
Non-current obligations under finance leases 29,252 33,663
Non-current portion of provisions 25,225 25,696
Other non-current liabilities 17,219 13,353
Total non-current liabilities 71,696 72,712
Shareholders' equity:
Ordinary shares 133,092 128,643
Additional paid-in capital 1,062,616 1,031,558
Retained earnings (406,965) (459,560)
Other comprehensive income (6,055) 11,956
Less, cost of treasury shares (1,985) (1,985)
Equity attributable to equity holders
of the Company 780,703 710,612
Minority interest 12,418 10,701
Total shareholders' equity 793,121 721,313
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 1,151,563 1,025,179Due 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)
Nine months ended
September 30,
2005 2004
(unaudited)
Cash flow from operating activities :
Net income (loss) 50,984 (5,392)
Adjustments to reconcile net income (loss) to
net cash from operating activities:
Depreciation, amortisation and impairment 30,035 43,905
Changes in non-current portion of provisions (292) (723)
and other liabilities, excluding restructuring
Deferred income taxes (1,559) 5,426
(Gain) / loss on sale and disposal of assets (3,648) 827
Share of (profit) loss of associates 877 5,023
Other, net (2,018) (3,102)
Changes in operating assets and liabilities:
Trade accounts receivable and related current (2,626) (3,123)
liabilities
Trade accounts payable and related current 8,619 23,491
assets
Inventories 9,390 (38,599)
Value-added and income taxes 145 19,147
Salaries, wages and other (9,335) 6,325
Restricted cash 23,277 (21,952)
Restructuring reserve payable (12,206) (14,010)
Net cash (used for) from operating activities 91,643 17,243
Cash flows from investing activities:
Sale / (purchase) of activites net of cash (63,401) -
(disposed) / acquired
Other investments (1,463) (3,615)
Purchase of property, plant and equipment (17,754) (15,239)
Purchase of other assets (1,125) (1,042)
Proceeds from sale of non-current assets 4,803
Change in non-trade accounts payable and other 3,299 2,872
Net cash used for investing activities (75,641) (17,024)
Cash flows from financing activities:
Proceeds from exercise of share options 1,817 1,288
Payments on long-term borrowings (176) (6)
Proceeds from sales-leaseback operations - 957
Principal payments on obligations under finance (4,441) (4,331)
leases
Increase (decrease) in bank overdrafts (551) 377
Dividends paid by subsidiaries to minority (1,307) (1,214)
shareholders
Changes in non-trade acounts payables on 347 -
financing activities
Net cash (used for) from financing activites (4,311) (2,929)
Effect of exchange rate changes on cash 705 1,211
Net increase (decrease) in cash and cash 11,691 (2,709)
equivalents
Cash and cash equivalents, beginning of the 388,430 390,684
period
Cash and cash equivalents, end of the period 400,826 389,1861) 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) Third Quarter 2005 compared with Third Quarter 2004
2.1.1) Operating Segments
Three months ended
(in millions of euros)
Net sales September September % change Adjusted
30, 2005 30, 2004 change(%)(x)
Telecommunications 167.5 153.2 9% 7%
Financial Services 58.9 53.0 11% 1%
Identity and Security 21.5 8.5 155% 51%
Total 247.9 214.7 15% 8%
(in millions of euros)
Gross profit September (% of September (% of % change
30, 2005 net 30, 2004 net
sales) sales)
Telecommunications 63.2 38% 51.7 34% 22%
Financial Services 13.7 23% 10.1 19% 36%
Identity and Security 5.9 27% 2.2 27% 162%
Total 82.8 33% 64.0 30% 29%
(in millions of euros)
Operating expenses September (% of September (% of % change
30, 2005 net 30, 2004 net
sales) sales)
Telecommunications (37.9) 23% (32.2) 21% 18%
Financial Services (13.1) 22% (24.9) 47% -47%
Identity and Security (10.5) 49% (7.0) 83% 50%
Total (61.5) 25% (64.1) 30% -4%
Operating income (loss) September September Change in
30, 2005 30, 2004 Operating
income (loss)
Telecommunications 25.3 19.4 5.8
Financial Services 0.6 (14.8) 15.4
Identity and Security (4.6) (4.8) 0.2
Total 21.3 (0.2) 21.4
(x) Adjusted for currency fluctuations, disposals & acquisitionsLUXEMBOURG, October 26 /PRNewswire/ --
2.1.2) Geographical Segments
Three months ended
(in millions of euros)
Net sales September September % change Adjusted
30, 2005 30, 2004 change(%)(x)
Europe, Middle East
and Africa 133.3 115.0 16% 2%
Asia 39.2 44.5 -12% -14%
Americas 75.4 55.2 37% 37%
Total 247.9 214.7 15% 8%
(x) Adjusted for currency fluctuations, disposals & acquisitionsLUXEMBOURG, October 26 /PRNewswire/ --
2.2) Nine months 2005 compared with Nine months 2004
2.2.1) Operating Segments
Three months ended
(in millions of euros)
Net sales September September % change Adjusted
30, 2005 30, 2004 change(%)(x) 30, 2004 (x)
Telecommunications 474.9 453.9 5% 4%
Financial Services 147.1 138.0 7% 5%
Identity and Security 55.2 30.6 80% 42%
Total 677.2 622.5 9% 6%
(in millions of euros)
Gross profit September (% of September (% of % change
30, 2005 net 30, 2004 net
sales) sales)
Telecommunications 176.9 37% 156.5 34% 13%
Financial Services 29.7 20% 28.0 20% 6%
Identity and Security 18.1 33% 8.7 29% 107%
Total 224.7 33% 193.2 31% 16%
(in millions of euros)
Operating expenses September (% of September (% of % change
30, 2005 net 30, 2004 net
sales) sales)
Telecommunications (114.1) 24% (109.9) 24% 4%
Financial Services (30.7) 21% (50.3) 36% -39%
Identity and Security (28.7) 52% (22.8) 75% 26%
Total (173.5) 26% (183.0) 29% -5%
Operating income (loss) September September Change in
30, 2005 30, 2004 Operating
income (loss)
Telecommunications 62.8 46.5 16.3
Financial Services (1.1) (22.2) 21.1
Identity and Security (10.6) (14.1) 3.5
Total 51.1 10.2 40.9
(x) Adjusted for currency fluctuations, disposals & acquisitions2.2.2) Geographical Segments
Three months ended
(in millions of euros)
Net sales September September % change Adjusted
30, 2005 30, 2004 change(%)(x)
Europe, Middle East
and Africa 353.6 320.9 10% 3%
Asia 127.2 147.8 -14 -14%
Americas 196.4 153.8 28% 31%
Total 677.2 622.5 9% 6%
(x) Adjusted for currency fluctuations, disposals & acquisitions(1) 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).
(2) Europe, Middle-East, Africa
(3) After adjusting for currency fluctuations, acquisitions and disposals.
(4) Includes 10.6 million euros of goodwill amortisation and restructuring expenses in the third quarter 2004, and the expensing of stock options from the first quarter 2005.
(5) EMV is a jointly defined set of specifications adopted by Europay, MasterCard and Visa for the migration of bank cards to smart card technology.
(6) Dynamic Data Authentication : to reduce the risk of card fraud, EMV standard defined dynamic offline authentication mechanisms based on asymetric cryptography. DDA smart card authentication system generates a unique signature on every transaction, making it very difficult to copy.
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, Edelman,
Frédéric Boullard, Tel: +33(0)1-56-69-73-95, Email:
frederic.boullard@edelman.com, Investor Relations, Gemplus, Céline
Berthier, Tel: +41(0)22-544-5054, Email: celine.berthier@gemplus.com,
Fineo, Tel: +33(0)1-56-33-32-31, Email: investors@gemplus.com