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Gemplus

Gemplus Reports Strong Improvement in Results for Fiscal Year 2005

Luxembourg (ots/PRNewswire)

Full year 2005 highlights:
  • Revenue increased by 8.5% to 939 million euros: growth sustained in all core businesses.
  • Operating income at 67 million euros: a 2.5 fold increase, driven by good overall Company performance.
  • Very strong net income1, at 90 million euros.
  • Robust free cash flow, at 85 million euros, excluding non-recurring items.
Fourth quarter 2005 highlights:
  • Operating margin at 6.0%, despite impact related to a quality issue with a specific chip.
  • Strong net income1, at 40 million euros, boosted by recognition of deferred tax assets of 25.6 million euros.
Gemplus International S.A. (Euronext: LU0121706294 - GEM and
NASDAQ: GEMP), the world's leading provider of smart card solutions,
today reported results for the fourth quarter and full year ended
December 31, 2005.
    In millions of      Q4     Q4 2004   Year-on-year  FY    FY  Year-on-year
    euros              2005                 change    2005  2004     change
    Net sales         261.7     242.5       +7.9%     938.9 865.0    +8.5%
    Adjusted for currency                   -1.5%                    +3.6%
    fluctuations, discontinued
    operations and acquisitions
    Gross profit       85.2     77.3        +10.3%    309.9 270.5    +14.6%
    Gross margin as a 32.6%     31.9%      +0.7 ppt   33.0% 31.3%   +1.7 ppt
    % of sales
    Operating income   15.6     16.1        -3.0%     66.8  26.3    +153.7%
    Operating margin   6.0%     6.6%       -0.6 ppt   7.1%  3.0%   +4.1 ppts
    Net income[1]      40.0     11.8        +239%     89.9   4.7       NM
    Free cash flow     21.5     11.3         +90%     85.3  58.8      +45%
    excluding non
    recurring items
    Free cash flow[2]  19.6      1.7          NM      95.7   5.5       NM
    Cash and cash     418.4     388.4       +7.7%     418.4 388.4    +7.7%
    equivalents
                            Per share data (in euros)
    Earnings per       0.06   0.02        +224%       0.14  0.01       NM
    share (fully
    diluted)
Commenting on the performance for the fiscal year 2005, Alex
Mandl, President and Chief Executive Officer, said: "2005 was another
year of substantial achievements for Gemplus: we reinforced the
Group's leadership, notably in high-end wireless and financial
services, and strongly improved our financial performance, especially
in terms of margin and cash flow. At the same time, we undertook two
very important strategic moves: the Setec acquisition, which
strengthens our position in the Government ID space, and the proposed
Gemalto merger which will create a world-class leader in digital
security. We feel very excited about this project which will take the
Company to new horizons."
Full Year 2005 financial review
Highlights:
  • Revenue up 8.5%: growth sustained in all core businesses.
  • Operating income at 67 million euros: a 2.5 fold increase, driven by good overall Company performance:
  • Gross margin up 1.7 percentage points.
  • Operating expenses flat.
  • Very strong net income1, at 90 million euros.
  • Robust free cash flow, at 85 million euros, excluding non-recurring items.
    In millions of euros                FY 2005 FY 2004 Year-on-year Adjusted
                                                           change   change[3]
    Group revenue                        938.9   865.0     +8.5%       +3.6%
    Telecom                              654.5   641.8     +2.0%       +0.5%
    of which Wireless products &         600.4   558.5     +7.5%        NA
    services
    of which Prepaid phone cards &       54.1    83.3      -35.1%       NA
    scratchcards
    Financial Services                   202.9   182.2     +11.3%      +4.9%
    ID and Security                      81.5    41.0      +98.7%     +46.6%
On a segment and geographical basis for the full year:
  • Telecom revenue was driven by Wireless. Wireless revenue was up 7.5% (up 7.2% currency adjusted), to 600.4 million euros, confirming the Group's leading position in this sub-segment. Wireless card shipments rose 34% to 342 million units, due to strong growth in EMEA[4] and the Americas. The Group's focus on value creation drove a substantial shift toward high-end cards, now considered only 3G and above, with their share increasing from 6.0% in 2004 of total shipments to 10% in 2005. The share of 64Kb, 128Kb, 3G cards and above rose from 34% in 2004 to 47% in 2005. The average selling price declined 20%, currency adjusted.
  • Financial Services revenue was driven by the EMV migration, with substantial rollouts in many European countries and ramp-up in Latin America and Japan. Gemplus shipped 70 million payment microprocessor cards (up 36%), with revenue up 25%.
  • ID and Security revenue was driven by the Setec acquisition, Government ID projects, particularly, in the Middle East, and Corporate Security projects, notably in the Americas.
  • On a geographical basis, revenue from the Americas was up 21.0%, currency and acquisition adjusted, driven by Wireless. The EMEA4 region was up 1.8%, led by Financial Services. Asia was down 12.5% reflecting Wireless price pressure.
    In millions of euros                   FY 2005 As a % of  FY 2004  As a %
                                                    revenue              of
                                                                      revenue
    Group gross profit                      309.9    33.0%     270.5   31.3%
    Telecom                                 241.5    36.9%     220.8   34.4%
    of which Wireless products & services   236.6    39.4%     215.6   38.6%
    of which Prepaid phone cards &           4.9      9.1%      5.2     6.2%
    scratchcards
    Financial Services                      41.9     20.6%     37.7    20.7%
    ID and Security                         26.5     32.5%     12.0    29.4%
Gross margin increased by 1.7 percentage points, mainly driven by
a favourable business mix as well as improvement in Telecom and ID &
Security.
    In millions of euros                   FY 2005 As a % of  FY 2004  As a %
                                                    revenue              of
                                                                      revenue
    Operating expenses                      243.2    25.9%     244.2   28.2%
    Operating income                        66.8      7.1%     26.3     3.0%
    Financial income & expenses              7.7                5.7
    Share of profit (loss) of associates    -0.5               -6.0
    Other non operating income (expenses),  -2.3               -6.8
    net
    Income tax                              19.8               -13.0
    Minority interests                      -1.5               -1.6
    Net income1                             89.9                4.7
Operating expenses were stable, despite the overall growth in the
business and the Setec acquisition. Operating expenses represented
25.9% of sales, compared to 28.2% the previous year, reflecting good
cost control and a reduction in restructuring expenses.
Consequently, operating income rose substantially, to 66.8 million
euros,  taking the operating margin to 7.1%.
Income tax reflects the recognition of deferred tax assets of 26.9
million euros. This contributed to the Company reporting net income1
of 89.9 million euros, an increase of 85.2 million euros over last
year, mainly due to improved operating income.
The Company generated free cash flow of 85.3 million euros, up 45%
compared with last year, excluding non-recurring items. Net cash flow
was 30 million euros, which included the cash outlay of 63 million
euros related to the Setec acquisition.
Fourth quarter 2005 financial review
- Income statement
Fourth quarter 2005 highlights:
  • Revenue up 7.9% year-on-year (down 1.5% adjusted3).
  • Operating margin at 6.0%, despite impact related to a quality issue with a specific chip.
  • Strong net income1, at 40.0 million euros, boosted by recognition of deferred tax assets of 25.6 million euros.
    In millions of euros         Q4 2005 Q4 2004 % change  Adjusted(3)
                                                          change (%)
    Net sales                     261.7   242.5   +7.9%      -1.5%
    Gross profit                  85.2    77.3    +10.3%
    Gross margin as a % of sales  32.6%   31.9%  +0.7 ppt
    Operating income              15.6    16.1    -3.0%
    Net income1                   40.0    11.8    +239%
Revenue was up 7.9%, driven by the Setec acquisition. Price
pressure in Wireless, combined with some softness in this sub-segment
and the quality issue in Telecom, translated into a 1.5% decline in
revenue, after restating for acquisitions and currency fluctuations.
On a geographical basis, adjusted3 revenue was up 0.8% in the
Americas and down 0.9% in EMEA4. In both regions, strong growth in ID
& Security and Financial Services was offset by a decline in Telecom
revenue. In Asia, revenue was down 6.6%.
Gross profit was up 10.3%, despite the Telecom quality issue.
Gross margin was up 0.7 percentage point year-on-year, due to
improved business mix and manufacturing efficiency in Telecom.
Operating expenses increased 13.8% year-on-year, to 69.6 million
euros,  mainly due to the Setec acquisition and severance packages.
Consequently, operating income for the fourth quarter was down 3%,
at  15.6 million euros.
Net income1 rose to 40.0 million euros, including the
recognition of deferred tax assets of 25.6 million euros.
- Balance sheet and cash flow statement
Fourth quarter 2005 highlights:
  • Robust free cash flow of 21.5 million euros, excluding non-recurring items.
  • Strong cash position, at 418.4 million euros. The Group's cash position is up 17.6 million euros compared to September 30, 2005.
Segment analysis
- Telecom
Fourth quarter 2005 highlights:
  • Record wireless shipments, at 101 million units, mainly driven by emerging countries.
  • Wireless ASP down 28.4% year-on-year, currency adjusted, reflecting an unfavorable regional mix and price pressure.
    In millions of euros                    Q4 2005 Q4 2004 % change Adjusted
                                                                    change(3)
                                                                        (%)
    Wireless products & services net sales   163.6   165.3    -1.0%
    Wireless gross profit                    62.6    62.4     +0.3%
    Wireless gross margin                    38.2%   37.7%  +0.5 ppt
    Prepaid phone cards & scratchcards net   15.9    22.6    -29.6%
    sales
    Prepaid phone cards & scratchcards        2.0     1.9     +5.0%
    gross profit
    Prepaid phone cards & scratchcards       12.8%   8.6%   +4.2 ppts
    gross margin
    Telecom net sales                        179.5   187.9  -4.5%      -7.9%
    Telecom gross profit                     64.6    64.3     +0.3%
    Telecom gross margin                     36.0%   34.2%  +1.8 ppt
    Telecom operating expenses               44.5    39.1    +14.0%
    As a % of sales                          24.8%   20.8%  +4.0 ppts
    Telecom operating income                 20.1    25.2    -20.4%
    Operating margin                         11.2%   13.4%  -2.2 ppts
Wireless revenue:
  • Wireless products & services revenue[5] was down 1.0% year-on-year (down 4.6%, currency adjusted), to 163.6 million euros.
  • Fourth quarter Wireless shipments grew 35% year-on-year, to 101 million units, mostly driven by emerging countries in all regions: Latin America, Eastern Europe, China, South-East Asia, Middle East and Africa.
  • The Wireless mix notably improved in EMEA4 and North America, driven by momentum in 3G cards. High-end card shipments (3G and above) accounted for 15% of the fourth quarter total, compared to 8% a year ago.
  • Wireless average selling price (ASP) was down 7.7% quarter-on-quarter and 28.4% year-on-year, both currency adjusted, reflecting ongoing price pressure and a substantial unfavorable change in the regional mix.
Wireless gross margin rose 0.5 percentage point, despite a quality
issue with a specific chip. This issue should have minimal impact on
financial statements of fiscal year 2006.
- Financial Services
Fourth quarter 2005 highlights:
  • Very strong growth in payment microprocessor cards: shipments up 70%, to 18.1 million units.
  • EMV[6] roll-out gained further momentum in Eastern Europe and Latin America.
    In millions of euros             Q4 2005 Q4 2004 % change   Adjusted(3)
                                                               change (%)
    Net sales                         55.8    44.2    +26.3%     +10.8%
    Gross profit                      12.2     9.7    +26.0%
    Gross margin as a % of sales      21.8%   21.9%  -0.1 ppt
    Operating expenses                12.5    13.7     -9.0%
    As a % of sales                   22.3%   31.0%  -8.7 ppts
    Operating income                  -0.3    -4.0      NM
    Operating margin as a % of sales  -0.5%   -9.1%     NM
Revenue reflects very strong growth in payment microprocessor
cards as well as the Setec acquisition.
Payment microprocessor card revenue rose 45% year-on-year.
Shipments of payment microprocessor cards grew 70% to 18.1 million
units. ASP decline reflects a greater share of modules in the sales
mix.
The strong performance in payment cards was mainly driven by the
EMV roll-out, which gained momentum in Eastern Europe and Latin
America, and sales growth in the United Kingdom and Continental
Europe. In addition, this quarter saw the first shipments of EMV
cards to China.
- Identity and Security
Fourth quarter 2005 highlights:
  • Very strong growth, driven by Government ID and Corporate Security projects.
  • On-going roll-out of e-passports in Singapore, Sweden and Norway.
    In millions of euros             Q4 2005 Q4 2004  % change   Adjusted(3)
                                                                change (%)
    Net sales                         26.4    10.4    +152.5%     +61.3%
    Gross profit                       8.4     3.3    +157.1%
    Gross margin as a % of sales      32.0%   31.5%   +0.5 ppt
    Operating expenses                12.6     8.4     +50.3%
    As a % of sales                   47.9%   80.5%  -32.6 ppts
    Operating income                  -4.2    -5.1       NM
    Operating margin as a % of sales -15.9%  -49.0%  +33.1 ppts
Strong growth was driven by a substantial increase in Government
ID projects, notably in the Middle East, and Corporate Security
projects, particularly in the United States, in addition to those
from Setec.
Outlook
The Group continues to see strong momentum in its core segments
and will maintain its focus on cost efficiency.
Gemplus confirms that it is firmly on track to realize its
mid-term objective to achieve a 10% operating margin in 2007.
The Group remains confident in its ability to further strongly
improve its operating income in 2006 taking into account the usual
seasonality effect of stronger organic growth in the second half than
in the first half.
Gemplus also continues to expect the Financial Services and ID &
Security segments to turn profitable in 2006.
Fourth Quarter 2005 Business Highlights
- Telecom
During the fourth quarter 2005, Orange included in its Orange
Intense campaign a bundle of multimedia services for the youth
segment with SIM+. This was the first commercial launch of Gemplus's
multimedia SIMs and endorsed its strategy to bring SIM cards into the
multimedia era.
Within a record time of nine months, Gemplus went from proof of
concept to commercial deployment for a range of SIMs, with one of the
most advanced mobile operators.
Gemplus was also selected by Optimus Portugal for its device
management solution, GemConnect Device Manager, to improve customer
care and boost data traffic.
- Financial Services
In China, Gemplus was the first smart card manufacturer to deliver
chip banking cards for ICBC's EMV migration. The cards were produced
locally by Gemplus's joint venture with Goldpac and complied with
MasterCard specifications, MCHIP/4.0.
Gemplus also announced the launch of a new range of products
designed to help card issuers differentiate their service offerings
and attract new clients. The Caisse d'Epargne was one of the first
banks to deploy this marketing strategy in France, with the roll-out
of mandarin-tinted transparent cards targeted at young customers.
Within the contactless segment, Gemplus moved forward with the
delivery in the USA of GemInstant cards for MasterCard(R) PayPass(TM)
contactless payment to one of the top ten leading banks in North
America.
Gemplus was also the first smart card manufacturer to achieve the
certification for the MasterCard OneSMART(TM) Chip Authentication
Program for its GemAuthenticate(TM) server, which enables financial
institutions to secure customer access to online banking services and
online purchases using two-factor authentication.
- Identity and Security
For the enterprise security sector, Gemplus was selected by Pfizer
to deploy Gemplus's SafesITe solution for network access and digital
signature. Gemplus has shipped over 100,000 cards to Pfizer as part
of its Global Identity Services program.
Lastly, in a recent report by Frost & Sullivan, Gemplus came out
top in the smart card readers and chipsets segment, with a 34.8%
share in 2004, up from 20.8% in 2003 (Source Frost & Sullivan,
January 2006).
- Research and Development
Gemplus R&D teams were rewarded for their innovation with the win
of the Sesames 2005 award for Best Software at the Cartes 2005
Conference and Exhibition. Gemplus innovated with the most compact
implementation of the .NET platform for networked secure devices,
such as USB dongles, secure MMC and smart cards.     Financial
calendar
The ordinary shareholders meeting relating to the proposed
Gemalto merger is scheduled to take place on February 28, 2006.
First quarter 2006 results are scheduled to be reported on
April 24, 2006, before the opening of Euronext Paris.
Conference Call:
The Company has scheduled a conference call for Thursday, February
9, 2006 at 2:30 pm CET (1:30 pm London time and 8:30 am New-York
time). Callers may participate in the live conference call by
dialing:
+44-(0)207-784-1018 or +1-718-354-1171, access code 5438605.
The slide show will be available on the web site at 12:30 p.m. CET
(11:30 a.m. London time). The webcast will also be available on the
IR section of www.gemplus.com.
Replays of the conference call will be available approximately 5
hours after the conclusion of the conference call until February 24,
2006 midnight by dialing:
+44-(0)207-784-1024 or +1-718-354-11-12, access Code:
5438605#.
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 2005, Frost & Sullivan, Datamonitor.). It has sold
over 5.5 billion smart cards.
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 2005 was 939 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)-6-79-46-35-93          Tel: +41-(0)-22-544-5054
    Email:  jane.strachey@gemplus.com    Email:  celine.berthier@gemplus.com
    Edelman                             Fineo
    Frederic Boullard
    Tel: +33-(0)-1-56-69-73-95          Tel: +33-(0)-1-56-33-32-31
    Email:                              Email:  investors@gemplus.com
     frederic.boullard@edelman.com
(c)2004 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 sectors; our ability to
develop new technology, and the effects of competing technologies
developed and expected intense competition generally in our main
segments; 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 December 31, 2005
Consolidated Statements of Income
                (in thousands of euros, except shares and per share amounts)
                   Three months ended                 Twelve months ended
                      December 31,                       December 31,
                  2005                2004           2005            2004
                      (unaudited)
    Net sales          261,703         242,542        938,875         865,034
    Cost of sales     176,475)       (165,278)      (628,967)       (594,533)
    Gross Profit        85,228          77,264        309,908         270,501
    Research and      (17,882)        (14,893)       (62,269)        (62,592)
    development
    expenses
    Selling and       (31,851)        (27,129)      (116,088)       (101,493)
    marketing
    expenses
    General and       (21,982)        (17,298)       (67,983)        (63,895)
    administrative
    expenses
    Restructuring        1,713             227          3,235         (8,384)
    expenses
    Other                  391           (101)           (48)           (101)
    operating
    income
    (expense), net
    Goodwill                 -         (1,970)              -         (7,718)
    amortization
    and impairment
    Operating           15,617          16,100         66,755          26,318
    income
    Financial            2,289           1,364          7,659           5,653
    income
    (expense), net
    Share of               662           (947)          (531)         (5,970)
    profit (loss)
    of associates
    Other              (2,373)         (2,158)        (2,301)         (6,757)
    non-operating
    income
    (expense), net
    Income before       16,195          14,359         71,582          19,244
    taxes
    Income tax          24,219         (2,676)         19,816        (12,953)
    expense
    NET INCOME          40,414          11,683         91,398           6,291
    Attributable
    to:
    Equity holders      40,013          11,806         89,890           4,674
    of the Company
    Minority               401           (123)           1508           1,617
    interest
    Net income per share attributable
    to equity holders of the Company
    (in euros)
    Basic                 0.06            0.02           0.15            0.01
    Diluted               0.06            0.02           0.14            0.01
    Shares used in net
    income per share
    calculation:
    Basic          628,003,671     606,933,869    618,285,864     606,672,060
    Diluted        647,413,175     618,170,575    634,742,894     619,022,472
    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.
 <end_table>
    Consolidated Balance Sheets
                                                                         (in
                                                                thousands of
                                                                      euros)
                                              December 31,      December 31,
                                                  2005              2004
    ASSETS
    Current assets:
    Cash and cash equivalents                      418,365           388,430
    Trade accounts receivable, net                 183,022           148,512
    Inventory, net                                 107,673           115,610
    Derivative financial instruments                 4,187            33,387
    Other current receivables                       82,128            66,160
    Total current assets                           795,375           752,099
    Non-current assets:
    Property, plant and equipment,                 158,284           148,916
    net
    Goodwill, net                                   90,826            28,197
    Deferred development costs, net                 21,227            19,222
    Other intangible assets, net                    23,600             8,965
    Deferred income tax assets                      32,788             6,264
    Investments in associates                       16,309            12,864
    Available-for-sale financial                     2,469             4,752
    assets, net
    Other non-current receivables,                  40,846            43,900
    net
    Total non-current assets                       386,349           273,080
    TOTAL ASSETS                                 1,181,724         1,025,179
    LIABILITIES
    Current liabilities:
    Accounts payable                               106,085            94,025
    Derivative financial instruments                 2,592                 -
    Salaries, wages and related items               62,641            55,199
    Current portion of provisions and               73,434            50,217
    other liabilities
    Current income tax liabilities                   5,228             6,581
    Other current tax liabilities                   20,821            19,127
    Current obligations under finance                5,539             6,005
    leases
    Total current liabilities                      276,340           231,154
    Non-current liabilities:
    Non-current obligations under                   26,425            33,663
    finance leases
    Non-current portion of provisions               23,482            25,696
    Other non-current liabilities                   13,417            13,353
    Deferred income tax liabilities                  4,354                 -
    Total non-current liabilities                   67,678            72,712
    Shareholders' equity:
    Ordinary shares                                133,466           128,643
    Additional paid-in capital                   1,071,388         1,031,558
    Retained earnings                            (374,183)         (459,560)
    Other comprehensive income                     (4,407)            11,956
    Less, cost of treasury shares                  (1,395)           (1,985)
    Equity attributable to equity holders of       824,869           710,612
    the Company
    Minority interest                               12,837            10,701
    Total shareholders' equity                     837,706           721,313
    TOTAL LIABILITIES AND SHAREHOLDERS'          1,181,724         1,025,179
    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)
                                                       Twelve months ended
                                                           December 31,
                                                        2005        2004
    Cash flow from operating activities :
    Net income (loss)                                    91,398         6,291
    Adjustments to reconcile net income (loss) to net cash from
    operating activities:
    Depreciation, amortization and impairment            41,369        56,691
    Changes in non-current portion of provisions and    (3,367)      (32,930)
    other liabilities, excluding restructuring
    Deferred income taxes                              (28,372)         3,661
    (Gain) / loss on sale and disposal of assets        (4,612)         2,582
    Share of (profit) loss of associates                    571         5,970
    Share-based compensation                              4,320             -
    Other, net                                          (2,130)       (2,700)
    Changes in operating assets and liabilities:
    Trade accounts receivable and related current      (12,133)       (2,962)
    liabilities
    Trade accounts payable and related current assets       822        20,774
    Inventories                                          22,661      (19,466)
    Value-added and income taxes                        (1,021)        21,288
    Salaries, wages and other                             4,429        14,161
    Restricted cash                                      23,277      (28,018)
    Restructuring reserve payable                      (15,847)      (18,307)
    Net cash from operating activities                  121,365        27,035
    Cash flows from investing activities:
    Sale / (purchase) of activites net of cash         (63,457)       (2,898)
    (disposed) / acquired
    Other investments                                   (1,674)       (2,982)
    Purchase of property, plant and equipment          (25,078)      (22,888)
    Purchase of other assets                            (2,693)       (1,725)
    Proceeds from sale of non-current assets              7,025         1,300
    Change in non-trade accounts payable and other        2,074         3,064
    Net cash used for investing activities             (83,803)      (26,129)
    Cash flows from financing activities:
    Proceeds from exercise of share options               2,790         1,479
    Payments on long-term borrowings                    (1,231)             -
    Proceeds from sales-leaseback operations                  -           956
    Principal payments on obligations under finance     (5,938)       (5,827)
    leases
    Increase (decrease) in bank overdrafts              (2,657)         1,660
    Dividends paid by subsidiaries to minority          (1,307)       (1,724)
    shareholders
    Change in treasury shares                                 -            90
    Changes in non-trade acounts payables on                 19             -
    financing activities
    Net cash used for financing activites               (8,324)       (3,366)
    Effect of exchange rate changes on cash                 697           207
    Net increase (decrease) in cash and cash             29,238       (2,461)
    equivalents
    Cash and cash equivalents, beginning of the         388,430       390,684
    period
    Cash and cash equivalents, end of the period        418,365       388,430
    1) Accounting principles:
    2) Segment information
    2.1) Fourth Quarter 2005 compared with Fourth Quarter 2004
    2.1.1) Operating Segments
    Three months ended                                                 (in
                                                                  millions
                                                                 of euros)
    Net sales                  December 31, 2005 December      %  Adjusted
                                                 31, 2004 change    change
                                                                   (%) (i)
    Telecommunications     179.5                    187.9    -4%       -8%
    Financial Services      55.8                     44.2    26%       11%
    Identity and            26.4                     10.4   153%       61%
    Security
    Total                  261.7                    242.5     8%       -2%
                                                                       (in
                                                                  millions
                                                                 of euros)
    Gross profit        December       (% of net December  (% of  % change
                        31, 2005          sales) 31, 2004    net
                                                          sales)
    Telecommunications      64.6     36%             64.3    34%        0%
    Financial Services      12.2     22%              9.7    22%       26%
    Identity and             8.4     32%              3.3    31%      157%
    Security
    Total                   85.2     33%             77.3    32%       10%
                                                                       (in
                                                                  millions
                                                                 of euros)
    Operating expenses  December       (% of net December  (% of  % change
                        31, 2005          sales) 31, 2004    net
                                                          sales)
    Telecommunications    (44.5)     25%           (39.1)    21%       14%
    Financial Services    (12.5)     22%           (13.7)    31%       -9%
    Identity and          (12.6)     48%            (8.4)    81%       50%
    Security
    Total                 (69.6)     27%           (61.2)    25%       14%
                                                                       (in
                                                                  millions
                                                                 of euros)
    Operating income           December 31, 2005    December 31, Change in
    (loss)                                                  2004 Operating
                                                                    income
                                                                    (loss)
    Telecommunications      20.1                     25.2             -5.1
    Financial Services     (0.3)                    (4.0)              3.7
    Identity and           (4.2)                    (5.1)              0.9
    Security
    Total                   15.6                     16.1             -0.5
    (i) Adjusted for currency fluctuations, disposals & acquisitions
    2.1.2) Geographical Segments
    Three months ended                                                 (in
                                                                  millions
                                                                 of euros)
    Net sales                  December 31, 2005 December      %  Adjusted
                                                 31, 2004 change    change
                                                                   (%) (i)
    Europe, Middle         137.4                    122.2    12%       -1%
    East and Africa
    Asia                    45.5                     46.5    -2%       -7%
    Americas                78.8                     73.8     7%        1%
    Total                  261.7                    242.5     8%       -2%
    (i) Adjusted for currency fluctuations, disposals & acquisitions
    The consolidated financial statements of the Company have been prepared
in accordance with International Financial Reporting Standards (IFRS).
    2.2) Twelve months 2005 compared with Twelve months 2004
    2.2.1) Operating Segments
    Twelve months                                                      (in
    ended                                                         millions
                                                                 of euros)
    Net sales             December 31, 2005      December      %  Adjusted
                                                 31, 2004 change    change
                                                                   (%) (i)
    Telecommunications     654.5                    641.8     2%        1%
    Financial Services     202.9                    182.2    11%        5%
    Identity and            81.5                     41.0    99%       47%
    Security
    Total                  938.9                    865.0     9%        4%
                                                                       (in
                                                                  millions
                                                                 of euros)
    Gross profit        December      (% of net  December  (% of  % change
                        31, 2005         sales)  31, 2004    net
                                                          sales)
    Telecommunications     241.5        37%         220.8    34%        9%
    Financial Services      41.9        21%          37.7    21%       11%
    Identity and            26.5        33%          12.0    29%      120%
    Security
    Total                  309.9        33%         270.5    31%       15%
                                                                       (in
                                                                  millions
                                                                 of euros)
    Operating expenses  December      (% of net  December  (% of  % change
                        31, 2005         sales)  31, 2004    net
                                                          sales)
    Telecommunications   (158.7)        24%       (149.0)    23%        6%
    Financial Services    (43.2)        21%        (63.9)    35%      -32%
    Identity and          (41.3)        51%        (31.3)    76%       32%
    Security
    Total                (243.2)        26%       (244.2)    28%        0%
                                                                       (in
                                                                  millions
                                                                 of euros)
    Operating income      December 31, 2005         December 31, Change in
    (loss)                                                  2004 Operating
                                                                    income
                                                                    (loss)
    Telecommunications      82.9                     71.8             11.1
    Financial Services     (1.3)                   (26.3)             25.0
    Identity and          (14.8)                   (19.2)              4.4
    Security
    Total                   66.8                     26.3             40.4
    (i) Adjusted for currency fluctuations, disposals &
    acquisitions
    2.2.2) Geographical Segments
    Twelve months                                                      (in
    ended                                                         millions
                                                                 of euros)
    Net sales             December 31, 2005      December      %  Adjusted
                                                 31, 2004 change    change
                                                                   (%) (i)
    Europe, Middle         491.0                    443.1    11%        2%
    East and Africa
    Asia                   172.7                    194.3   -11%      -13%
    Americas               275.2                    227.6    21%       21%
    Total                  938.9                    865.0     9%        4%
    (i) Adjusted for currency fluctuations, disposals &
    acquisitions
    [1] Net Income attributable to Equity Holders
    [2] Free cash flow 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] Adjusted for currency fluctuations, discontinued operations &
acquisitions.
    [4] Europe, Middle East and Africa
    [5] Wireless products & services revenue comprises wireless
microprocessor cards and related applications (embedded software and Over The
Air platforms) and services (system integration and operated services).
    [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.

Weitere Storys: Gemplus
Weitere Storys: Gemplus
  • 19.01.2006 – 07:03

    Gemplus Announces Expected Results for Fiscal Year 2005

    Luxembourg (ots/PRNewswire) - Gemplus International S.A. (Euronext: LU0121706294 - GEM and NASDAQ: GEMP), the world's leading provider of smart card solutions, announces today a revision of its earnings expectations. Revenue for the fourth quarter 2005 is now expected to be around 262 million euros. Therefore, for the fiscal year 2005, the Company anticipates revenue of around 939 million euros, versus revenue ...

  • 12.01.2006 – 08:04

    Gemplus Launches the "Plastic Fantastic" Range of Innovative Card Bodies

    Luxemburg (ots/PRNewswire) - - Gemplus wins ICMA[1] Award for Best Financial Card Design two Years Running Gemplus International S.A. (Euronext: LU0121706294 - GEM and NASDAQ: GEMP), the world's leading provider of smart card solutions, launches its new range of innovative card bodies, "Plastic Fantastic" for the financial services sector. This follows ...

  • 20.12.2005 – 08:04

    Gemplus-Goldpac First to Deliver EMV Cards to ICBC, China's Leading Bank

    Luxembourg (ots/PRNewswire) - - ICBC is the First to Deploy EMV Credit Cards in China Gemplus International S.A. (Euronext: LU0121706294 - GEM and NASDAQ:GEMP), a world leading provider of smart card solutions, announces that it has delivered EMV credit cards offering high security for transactions for the leading Chinese bank, Industrial and Commercial ...