Gemalto results see government programmes grow

Gemalto has reported that its revenue for the third quarter 2009 reached 401 million euros, down 5% on the same period last year. Revenue for the first nine months of the year was 1201 million euros, unchanged on the figure for 2008. Demand in the quarter was softer in the Americas compared to last year, while activity contracted in the identity and access management segments in Europe as enterprises postponed projects.

During the quarter, the company won two large-scale national projects and continued to pick up further deals for mobile communication service contracts. It says that government programme revenue overall rose by 4% during the period, with the double-digit growth in EMEA and Asia offset by low demand in the Americas. Contracts secured during the period included a large-scale national ePassport project in Asia as well as the renewal of a national eID contract in Europe.

Gemalto says it is well on track to further expand its profits for the full 2009 financial year. It adds that its 2009 objective of an adjusted operating margin of above 10% remains unchanged. The adjusted operating income for the full year is now anticipated to be around 180 million euros.

 “Thanks to our continuous improvement in operating efficiency we are confident in our ability to expand our adjusted operating income to around 180 million euros for the full year,” says Olivier Piou, chief executive officer, Gemalto. “This quarter’s revenue is the reflection of a more cautious market place of preparation of year-end commercial campaigns and more focus on inventory management and cash optimisation. We continue to increase the share of software and services in our revenue. As we achieve our 2006-2009 long-range plan, focused on margin improvement and establishing a solid foundation for our future, we are now ready for our next phase of development.”