Gemalto sees operating income grow 40%

 

Gemalto is the latest firm to announce its results for 2007, with revenue from its Security division growing 9%.

The firm saw revenue for the whole business fall 4% from 1698 million euros in 2006 to 1631 million in 2007. Operating income (EBIT) was 84 million euros, up 40% on 2006’s figure of 60 million euros.

It says that at constant exchange rates and compared with the previous year, revenue from its Security division was up 9% in 2007, and up 26% in the second semester. It adds: The operating performance of Security in 2007 reflected the investments made to support our growth and consolidate our leadership in government programs. Profitability for the division was also reduced by the lower contribution from patent licensing in 2007.

Government programs revenue was up 23%, reflecting the ramp up of deliveries in ePassport, eIdentity and eHealth projects won during previous years around the world.

The firm says in line with its strategy to grow its Security business, research & engineering and sales & marketing expenses increased by 4.1 million euros and 6.4 million euros respectively. As a result of these investments, which were expensed, the segment reported an operating loss of 26.7 million euros in 2007.

Gemalto says ramp up of the many large government program contracts won in 2007 will drive security growth in 2008.

 “These good 2007 results are an important milestone toward our 2009 objective,” says Olivier Piou, chief executive officer, Gemalto. “In 2007 we implemented the first part of our synergy plan with results coming ahead of schedule. In 2008 we will complete the restructuring program and will secure the full synergies, benefiting in 2009, and considerably expanding our operating income again.”