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Gemalto publishes solid 2010 results. Good performance for the M2M activity.

Logo Gemalto

Gemalto, the smart cards and security solutions specialist, recently published strong results for 2010:

  • Full year revenue growth of +19% to € 1,906 million
  • Software and services revenue increases by +54% to € 252 million
  • Profit from operations expands by +19% to € 216 million

Concerning the M2M activity, Olivier Piou, Chief Executive Officer, commented: “The good performance of the Machine-to-Machine business also contributed to our profit in the Telecom space.

Here-under are the figures published by Gemalto for its M2M business:

“The Machine-to-Machine (M2M) segment formed at the beginning of August 2010 essentially corresponds to the acquired Cinterion activity. It also includes Gemalto‟s existing M2M activity previously reported in the Mobile Communication segment. As a result, the Machine-to-Machine segment encompasses wireless modules from Cinterion, Gemalto’s MIM products (Machine Identification Modules) and emerging M2M management platforms and services.

Gemalto 2010 results - M2M business

M2M posted revenue of € 81 million over the 5 month consolidation period, higher by 15% at constant exchange rates on the previous year on a pro-forma basis*.

The integration of Cinterion and Gemalto M2M activities progressed well over the second half and the development of integrated offers began by year-end. During this period, revenue expansion was driven by the growing adoption of cellular connectivity solutions in a variety of industries such as automotive and metering.

Gross profit grew accordingly, even if the strong rebound in the M2M applications came with slightly lower gross margins.

Nevertheless, profit from operations doubled on a pro-forma basis, to € 7 million, or 8.7% of revenue, benefiting from the strong operating leverage.

* Pro-forma, by comparing the activities reported in the Machine-to-Machine segment starting August 1, 2010, consolidation date of the acquired Cinterion business, with the corresponding activities for the same period of 2009.

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