Card Factory Share Discussion Threads

[garth] 10/3/2006 15:28

Re my last post, one for the wise who can read between the lines. Post 41

[garth] 10/3/2006 11:33

A profitable Scottish SMART CARD £7m Small Cap forecast to be profitable to the tune of £3m in two years time:

SMRT (Advanced Smartcard Technology) are a small (£7m) Scottish software holding company and parent to Ecebs. They floated on AIM in December, raising just £750,000 Shares are tightly held. They are trading profitably and forecast to make £300K this year, £700K in 2007 and - on the basis of current order pipeline - £3M in 2008. The broker has confirmed this week that they are on track to announce a £3m+ contract win 'shortly'.

Ecebs provide software that powers the communication of multi-application smartcards with reader terminals. The software is used in smartcards, electronic purses, EMV & transport ticketing applications. Barry Hochfield, their Technical Director and co-founder, was responsible for developing the specifications for the smartcard industry standard multi-application operating system MULTOS 4.0

In just one application of their Multefile technology Ecebs have provide the security application module (ISAM) used at the heart of every reader deployed in the Department of Transport's ITSO industry standard. 85% of all transport operators in the UK are signed up to this standard. Last month Ecebs announced the delivery of a contract for £350K worth of ISAMs for the Scottish Executive to provide free bus travel to 1.2m pensioners and disabled persons in Scotland. There is a pilot currently running with Transport for London (TfL) - ending this month - aimed at bringing Oyster in line with ITSO....

ITSO - the Government's Transport Industry standard - is just one application of Ecebs' technology. A bus contract is Scotland was worth £350K to the company. What would London be worth? The already stated aim is to roll the system out to the rail networks (Virgin are one of those companies signed up), to Car Parking schemes and to small purchases. Every PoS & back-office needs an ISAM. Every ISAM is a SmartCard supplied by Ecebs at £50 a time.......

ITSO is being used to develop a European Standard

DYOR. Not advice to buy or otherwise.

Thread with loads of info but only one poster here:


G.

[waldron] 08/3/2006 06:25

Oberthur Card Systems 2005 Results
Two Digit Growth and Profitability

PARIS, March 8 /PRNewswire-FirstCall/ --

- Outstanding growth: EUR500.8 M, a 11.3% increase[1]

- Best EBIT ever: EUR50.6 M, up 18%, representing 10.1% of sales

- Net result before income taxes: EUR48.3 M, up 18.3%


Oberthur Card Systems S.A. reports its full year results for the year ended December 31st, 2005. The consolidated financial statements have been prepared in accordance with IFRS accounting principles.

In 2005, Oberthur Card Systems recorded its best ever growth and sales performance.

The Group delivered a record result in 2005, with further improvement in its EBIT margin.

Oberthur Card Systems is committed to bringing its customers best in breed technology, supported by local services. In line with this commitment, Oberthur Card Systems is continuing its geographical expansion program through opening of new sales offices and regional personalization bureaus, new partnerships, external growth, and acquisition of new customers.

During 2005, Oberthur Card Systems implemented a number of major projects, in particular the worldwide deployment of new tools for card profile configuration and personalization, enabling it to remain at the forefront of smart card technology whist driving a cost control policy and providing industry-leading services.


MEUR Variation at actual 2004 2005 rate

Sales 449.9 500.8 +11.3% EBIT[2] 42.9 50.6 +18%

Operating Margin (%) 9.5% 10.1% Earnings after 40.9 48.3 +18.3% financial results Net Result 32.9 30.7 -6.8% Basic net income per 0.45 0.42 share (in euro) Net debt / Equity ratio 0.21 0.05

Sales

Oberthur Card Systems' performance in 2005 is remarkable. In a highly competitive market, the company recorded great successes and posted the strongest growth in the smart card industry. 2005 sales reached EUR500.8 million, a year-on-year improvement of 11.3%, a historic achievement in terms of growth.

All business segments contributed to this growth.

Sales in the microprocessor card segment increased by 12% at constant exchange rates compared to 2004. The total volume of microprocessor cards delivered was an unprecedented 195 million units, a 31.3% increase compared to 2004.

At the same time, sales of magnetic stripe cards increased by 12.4%, to EUR75.5 million.

Oberthur Card Systems has reinforced its leadership in personalization, posting an 8.4% increase from 2004.

Geography:

MEUR 2004 2005 Variations 2005 / 2004 at actual rates Europe, Middle East, 329.5 353.5 +7.3% Africa Americas 99.0 125.4 +26.7% Asia / Pacific 21.4 21.9 +1.9% Total 449.9 500.8 +11.3%


As the largest contributor to the company revenue, the Europe, Middle East and Africa regions sales amounted to EUR353.5 million, a +7.3% growth compared to 2004.

In the GSM segment, Oberthur Card Systems took advantage of strong demand in all of its traditional markets and strengthened its position in emerging markets such as Russia, the Middle East and Africa.

Sales in the Americas' region increased by 26.7% compared to 2004, reaching EUR125.4 million. This performance was boosted by a strong activity in the magnetic stripe banking card segment and major contracts in the GSM market. The personalization services segment posted substantial growth in the United States: revenue from this activity increased by 10.5%, amounting to EUR53.1 million.

Despite strong price pressure, Asia revenue remained relatively stable with a 1.9% growth year-on-year. Asia Pacific's top line (China excluded) increased by more than 10.7% at constant exchange rates and revenue from the microprocessor card segment increased by 11.8%.

Due to efficient sales coverage, the company increased its market share in this region: SIM volumes were up 102.4% compared to 2004. Oberthur Card Systems entered into new contracts with major groups and other wireless operators.

Profitability

Oberthur Card Systems posted a sharp improvement in profitability. Reaching EUR50.6 million, the EBIT rose by 18% compared to last year.

This performance was achieved mainly through:

- High sustained level of gross margin and added value with 59.8% and 40.3% respectively, against 60.5% and 41.5% last year, in spite of strong price pressure in the industry. This achievement is due to the combined effect of a high end product policy and services development.

- A strict control on headcount and on personnel expenses, providing leverage despite the geographical expansion; posting a 0.9 percentage point decrease, this line represented 27.2% of 2005 sales.

- Depreciation and accruals represented EUR18.2 million against EUR17.5 million in 2004, reflecting the leverage effect on the industrial tool.

- Non-recurring items amounted to EUR3.3 million: this is essentially due to a new agreement reducing the pension plan deficit in the UK, allowing a reversal of accrual of EUR3.2 million.

As a consequence, Oberthur Card Systems posted its best full year EBIT margin ever, at 10.1% of sales.

After EUR2.3M of financial results, earnings before income tax reached EUR48.3M, a 18.3% increase compared to the EUR40.9M result of 2004.

After EUR17.3M for income tax expenses compared to EUR7.8M in 2004, net result amounted to EUR30.7 M, a 6.8% decrease, attributable to the exceptional situation the company experienced a year ago (differed tax assets amounting to EUR6.9 M).

During the period, Oberthur Card Systems generated EUR55.9 million of net cash flow, a rise of EUR10M compared to 2004.

At EUR25.4 million, net investments remained relatively constant. They included EUR2.8 million relative to the capitalization of pre-sale and personalization software (CPS) and the sale of a building in Paris.

As a consequence, free cash flow amounting to EUR32M allowed debt to be reduced to EUR12.5M. As of December 31st, 2005, the company had a net debt equity ratio of 0.05 compared to 0.21 a year before.

Perspectives

The new competitive landscape clearly offers new opportunities for Oberthur Card Systems.

At present, the Group is actively deploying new personalization tools, developing its R&D capacities on several continents and progressively implementing innovative manufacturing strategies. In this context, thanks to its cash flow and absence of debt, the company will go on improving the allocation between future revenue and costs, even through external acquisitions.

Thanks to this set of projects, the company is confident in its ability to leverage the expected strong growth of its markets. Moreover, the current environment sustains the company's ambition to be the number 1 provider for customers demanding high-end security and high-quality service.

About Oberthur Card Systems

With sales of 500.8 million Euros in 2005, Oberthur Card Systems is one of the world's leading providers of card-based solutions, software and applications, including SIM and multi-application smart cards as well as services ranging from consulting to personalization.

Innovative products, security expertise and high quality services ensure Oberthur Card Systems' strong position in its main target markets:

+ Payment & Services: accounting for 53% of 2005 revenue. Oberthur Card Systems is a world leader and the number one supplier of Visa and MasterCard payment cards

+ Mobile Communications: accounting for 32% of 2005 revenue, mainly from open and interoperable solutions based on Java(TM) technology.

+ Identity: Oberthur Card Systems holds a strong position in ID projects throughout the world

+ Multimedia: Oberthur Card Systems enjoys a leading position in the Pay-TV market, with end-to-end expertise throughout the value chain - software development, manufacturing and personalization

+ Transit: Oberthur Card Systems provides a microprocessor-based offer especially suited to the high-end market segments

Close to its customers, the company benefits from an industrial and commercial presence across all five continents. Listed on the Euronext Stock Exchange (ISIN: FR0000124133) since July 2000, Oberthur Card Systems is a subsidiary of the Francois-Charles Oberthur Group.

For more information, visit

Oberthur Card Systems Image 7 Investors / Press Contact: Caroline Simon-Phelip Tel : [phone] Stephanie Cau Mail: Tel: [phone] Mail: Tiphaine Hecketsweiler Tel : [phone] Mail:

ADDITIONAL INFORMATION

MEUR 2004 2005 Variations 2005 / Variations 2004 2005 / 2004 at actual rates at constant rates Microprocessor 288.4 323.2 +12.1% +12.0% cards Payment 127.1 121.3 -4.6% -4.3% Mobile 133.5 161.8 +21.2% +20.8% Communications Identity & 27.8 40.1 +44.4% +44.4% Security Other Cards 67.2 75.5 +12.4% +12.4% Services & 94.3 102.1 +8.3% +8.4% Solutions Total 449.9 500.8 +11.3% +11.3%


In 2005, Oberthur Card Systems delivered 195 million microprocessor cards, compared to 149 million in 2004. This represents a 31.3% increase year-on-year. Sales in the segment reached EUR323 million, a 12% growth at constant exchange rates.

Mobile Communications This segment represents 32% of Oberthur Card Systems' global 2005 sales.


In 2005, SIM card volumes increased by an outstanding 51.2%, to 98.5 million units.

Wireless revenue increased by 20.8% to EUR161.8 million, confirming the Group's positioning strategy in this sub-segment.

SIM card average selling price (ASP) decreased by 20.1% year-on-year, indicating not only ongoing price pressure but also the successful penetration of new dynamic markets, still to migrate to high-end cards.

In 2005, the product mix continued to improve: the share of high-end product shipments increased significantly and high-end (64 K and above) cards now represent 57% of volume (versus 41% in 2004).

Sales of high-end SIM cards represent 65% of Oberthur Card Systems' mobile communications segment revenue in 2005 versus 55% in 2004.

A tremendous performance in the wireless segment in 2005 confirms Oberthur Card Systems' winning strategy over the past 18 months. 40 new customers fuelled significant increases in both volume and revenue. The operator group positioning strategy is paying off: during 2005, Oberthur Card Systems strongly reinforced its presence within major groups in Europe but also in Asia.

Due to an efficient expansion strategy and the commitment to delivering dedicated local support, the company has been well placed to significantly increase its share of the GSM market. Oberthur Card Systems gained substantial market share in the US market with major contracts during 2005, thereby delivering on commitments previously made to its shareholders.

Recognized as a leader in high-end technology, Oberthur Card Systems posted a great performance in the 3G sector in 2005, with USIM cards representing an increasing part of the total volume in this segment for 2005.

Oberthur Card Systems has long been renowned as the innovator in the smart card industry. The company received further industry recognition at Cartes 2005, when it was awarded a Sesame for its GIGAntIC USIM card.

Payment & Services:

Oberthur Card Systems is at the forefront of the payment card segment, with payment and services segment representing 53% of Oberthur Card Systems' 2005 global revenue.

Microprocessor payment card volumes grew 3.4% to 77 million units compared with 74 million units in 2004. This growth was driven by a strong demand in the emerging contactless market in North America. In Europe, 2005 was characterized by a slowdown of the EMV migration in the UK market, which is now entering a renewal phase, and a delay of EMV rollouts in other European countries.

Oberthur Card Systems generated revenue of EUR121.3 million in the payment smart cards segment, down 4.3% on 2004. The slight decline in sales is relative to the results of 2004, when a massive rollout of EMV cards in the UK ensured exceptional revenue figures in this segment.

Sales of "Other Cards" (magnetic stripe cards, scratch cards and memory cards) remained strong in spite of the expected decline due to EMV migration. Boosted by a strong level of activity in the United States, sales were up 12.4% reaching EUR75.5 million.

Credited by a good performance in banking personalization in Europe and US, sales of "Services & Solutions" increased by 8.4% year-on-year.

The finance segment promises strong volume increase in the years to come as EMV migration gains momentum globally.

Identity & Security:

2005 volumes in this product line totalled almost 20 million units, up 121% on 2004. This impressive growth was significantly boosted by the sustained demand in the Pay TV sector, combined with strong deliveries of e-passports in several countries but also new national and military programs such as ID cards for the Turkish army.

In the Identity sector, the ASP erosion is principally due to the price decrease in the previous generation of conditional access cards. Nevertheless, revenue increased by 44.4% at constant exchange rate compared to 2004, amounting to EUR40 million.

Oberthur Card Systems confirmed, once again, its leading position in this emerging market and is perfectly positioned to benefit from the global growth of this activity.

2005 Key Business Achievements:

- Jan-2005: Launch of GIGAntIC, the world's first fully operational USIM combining 128 MB of secure high-capacity Flash memory and High Speed Data protocols

- Fev-2005: Support of Orange Group for GIGAntIC launch

- Mar-2005: End of the world 's first e-passport deployment in volumes for Oberthur Card Systems in Belgium (beginning in nov 2004)

- Apr-2005: Oberthur Card Systems is back in the US GSM market with a major contract

- Jun-2005: Major ID contract with the Turkish Army - 2 million cards - Jul-2005: Thai e-passport launch for Oberthur Card Systems

- Jul-2005: US GSM market: Oberthur Card systems strengthens its position with a second major contract

- Sep-2005: Certification for EMV in China - Oct-2005: Acquisition of Africard, South Africa - Nov-2005: Sesame Award for GIGAntIC - Nov-2005: Sesame Award for SkyCard - Dec-2005: Opening of the new personalization bureau in Italy - Dec-2005: Two major personalization outsourcing contracts in Italy Exhibit Profit and loss account and other key indicators

MEUR 2004 2005 Variation 2005/ 2004

Sales 449.9 500.8 50.9 Gross Profit 272.2 299.6 27.4

Gross Margin % sales 60.5 % 59.8% Compensation and (126.3) (136.2) (9.9) Benefits Other external (80.1) (92.6) (12.5) charges Taxes and duties (5.4) (5.2) 0.2 Other revenues & - 3.3 3.3 expenses Depreciation and (17.5) (18.3) (0.8) provisions EBIT 42.9 50.6 7.7

% sales 9.5% 10.1% Financial results (2.0) (2.3) (0.3) Earnings after 40.9 48.3 7.4 financial results Income tax expenses (7.8) (17.3) (9.5) Minority interests 0.2 (0.3) (0.5) Net Income 32.9 30.7 (2.2) Basic net income per 0.45 0.42 (0.03) share EUR Diluted net income 0.44 0.40 (0.04) per share Net debt/Equity 0.21 0.05 ratio Headcount end of 2 943 3368 period

Consolidated Statements of Changes in Equity

MEUR Equity as of Dec 31st, 2004 204.7

Net results for the period 31.0

Translation adjustment 11.1

Cash dividends (10.1)

Issuance of shares for SO plans 10.0

Cash flow hedges 0.6

Other (0.1)

Cost of share based payment 0.9

Equity as of December 31st, 2005 248.1


Consolidated Balance Sheets

As of Dec As of Variation % 31st, 2004 Dec 31st, 2005 Equity 204.7 248.1 +21.2% Net Debt (44.3) (12.5) -71.8%

Net debt/Equity ratio 0.21 0.05


[1] At constant exchange rates [2] EBIT: Earnings Before Interest and Tax

DATASOURCE: Oberthur Card Systems


CONTACT: Oberthur Card Systems: Investors / Press Contact: Stephanie

Cau, Tel: [phone], Mail: , Image 7, Caroline

Simon-Phelip, Tel : [phone], Mail: ,

Tiphaine Hecketsweiler, Tel : [phone], Mail:

[garth] 22/2/2006 14:19

Started a new thread on ADVANCED SMARTCARD TECHNOLOGIES(SMRT). Interesting prospect IMO, most notably its key contribution to the ITSO standard:

[waldron] 09/2/2006 06:33

Gemplus Reports Strong Improvement in Results for Fiscal Year 2005

LUXEMBOURG, February 9 /PRNewswire-FirstCall/ -- 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:

[phone] or [phone], 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

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:

[phone] or [phone], 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.

For more information:

Press Gemplus Investor Relations Jane Strachey Gemplus Tel: [phone] Celine Berthier Mob: [phone] Tel: [phone] Email: Email:

Edelman Fineo Frederic Boullard Tel: [phone] Tel: [phone] Email: Email:


(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.



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.

DATASOURCE: Gemplus SA

[waldron] 03/2/2006 07:45

Published: 07:40 03.02.2006 GMT /HUGIN /Source: Axalto /LSE: AXL /ISIN: NL0000400653

AXALTO Named 'Hot Company' 2006




Montrouge -- (MARKET WIRE) -- 02/03/2006 -- AUSTIN, Texas, February 3, 2006 - Axalto's leadership and innovation in the smart card market have earned it a spot among the elite "Hot Companies" for 2006 in the Info Security Products Guide, the world's leading publication on security related products and technologies. The Hot Companies selection recognizes industry players that provide end-users with the most effective and deployable protective solutions against the next generation of highly sophisticated attacks.

What makes a company hot® According to Info Security Products Guide, the answer is solving a critical security problem that faces every individual, enterprise or government conducting commerce or sharing confidential information on the World Wide Web. Axalto's microprocessor card solutions are a key component in identity management solutions used today by corporate enterprises and government organizations such as the Microsoft and US Department of Defense.

"At work or at play, each of us is unique. And each of us has a set of identity information that we want protected in the best possible way. Secure, portable and convenient, the smart card is the future of online identity protection for each of us," said Damon Turnbull, marketing director, Axalto Americas. "And the smart card platform enables easy migration to more advanced applications such as payment, remote access, trusted wireless, or encryption."

Selected from an industry analysis of more than 600 info security vendors around the world, Axalto received this prestigious honor based upon a stern selection criteria of 4Ps: Products, People, Performance and Potential behind the company's growing success.

The Info Security Products Guide cites Axalto's business culture of collaboration, reliability and strong ethics; its work towards advancing industry standards; and the company's many recent innovations including the Protiva, Cryptoflex .NET, and Network Card technologies. To read Axalto's "Hot Companies" 2006 complete review please see:

"Axalto's success in the market, broad range of products, and contributions to promoting the industry make Axalto a hot company," said Rick Justice, chief editor, Info Security Products Guide. "With lower deployment costs and easy manageability, Axalto is not only shaping the smart card industry, but also contributing to the highest security and protection of vital digital resources."

"The award would not have been possible without our customers", added Turnbull, "they are the one encouraging us to innovate and define new standards for trusted online communities".

About Info Security Products Guide Awards

The Info Security Products Guide plays a vital role in keeping end-users informed of the choices they can make when it comes to protecting their digital resources. It is written expressly for those who are adamant on staying informed of security threats and the preventive measure they can take. You will discover a wealth of information in this guide including award winning case studies and deployment scenarios, people and technologies shaping info security and the best selling products. The Info Security Products Guide Awards recognize and honor excellence in all areas of information security. To learn more, visit www.infosecurityproductsguide.com and stay secured.

About Axalto

Axalto (Euronext: NL0000400653 AXL) is the world's leading provider of microprocessor cards (Gartner 2005, Frost & Sullivan 2004) - the key to digital networks - and a major supplier of point-of-sale terminals. Its 4500 employees come from over 60 nationalities and serve customers in more than 100 countries, with worldwide sales exceeding 3 billion smart cards to date. The company has 25 years' experience in smart card innovation and leads its industry in security technology and open systems.

Axalto continuously creates new generations of products for use in a variety of applications in the telecommunications, finance, retail, transport, entertainment, healthcare, personal identification, information technology and public sector markets. Microprocessor cards provide convenience, security and privacy to public and private services operators, their customers and end users. For more info, please visit www.axalto.com

This information is provided by CompanynewsGroup


Contact:
Deb Montner
Montner & Associates
203-226-9290
[e-mail]


This press release was brought to you by Hugin, distributor of electronic press releases for companies listed on selected European stock exchanges. Address:

[ariane] 05/1/2006 10:54

SG Lifts Oberthur EPS Estimates For 06, 07

Thursday, January 05, 2006 5:25:19 AM ET
Dow Jones Newswires



0912 GMT [Dow Jones] SG lifts Oberthur Card Systems (12413.FR) EPS estimates by 4% to EUR0.59 in '06 and by 15% to EUR0.73 in '07. Says stock price has been mainly flat for last three months but merger of Axalto (AXL.FR) and Gemplus (5768.FR) should help push it higher. Shares trade +3.4% at EUR7.56. (DBL)

[grupo guitarlumber] 15/12/2005 11:39

Intercede H1 loss narrows, expects continued growth going forward

LONDON (AFX) - Software company Intercede Group PLC posted narrower interim
losses and said it expects to see continued strong growth in its market sector
and in market share over the coming months.
"We anticipate that our new and existing distribution partners will start to
generate recurring revenues as they respond to increasing demand for identity
cards for corporate and governmental applications around the world," the group
said.
For the six months to Sept 30, the company posted a pretax loss of 48,000
stg compared to a loss of 558,000 a year earlier.
Sales during the period totalled 1.241 mln stg compared to 535,000 stg last
time.
bam

[grupo guitarlumber] 15/12/2005 07:23

Interim Results

RNS Number:6930V
Intercede Group PLC
15 December 2005


INTERCEDE GROUP plc

Interim Results for the Six months Ended 30 September 2005

Chairman's Statement

Business and Product Development
I am pleased to report that the Group has achieved a very strong six month
period in terms of year on year revenue growth and partnership development. The
Group has now been profitable and cash generating for two consecutive half year
periods.

From a business development perspective this has been a transformational period,
as our technology and business model have proven themselves around the world.
Intercede has succeeded in signing new OEM licence contracts with both RSA
Security and Verisign, arguably the largest and most influential security
software and service vendors in the world. These industry majors, along with our
existing partners, are rapidly establishing Intercede's MyID smart card
management system as the global de facto standard for interoperable smart card
management across the smart card and IT security industries.

Major sales successes during the period include:

UK

1. Gemplus have now delivered 300,000 MyID licences to a major European
customer.
2. Siemens have sold 200,000 MyID licences to a leading UK retailer.
3. Oberthur Card Systems have collaborated with Intercede to build a UK National
ID demonstrator in their Tewkesbury facility. Intercede and Oberthur will
jointly market the demonstrator to UK Government and major integrators.

USA

1. RSA Security - Intercede has concluded an OEM licence agreement valued at a
minimum of $2m over the next three years. The first $500,000 has already
been received and a further $500,000 is due to be received prior to the end
of the financial year. Under this agreement, RSA have launched the RSA Card
Management solution based on Intercede's MyID technology.
2. Verisign - Following a competitive RFP process, Intercede has entered into a
global OEM licensing agreement with Verisign. Under this agreement, Verisign
will pay Intercede to produce a custom version of MyID to closely integrate
with the Verisign Managed PKI environment and reimburse Intercede a
percentage of all its associated service fees.
3. Major US Aerospace Contractor - Following a competitive procurement process,
Intercede and a US partner secured a contract to install a pilot deployment
of MyID within a major US aerospace contractor. This pilot has been
successfully completed during the period and production roll-out is
anticipated within the next 12-18 months.
4. Major US Bank - An order has been received for the first stage of a MyID
deployment within a major US bank in partnership with a major US computer
manufacturer.
5. SafeNet - Intercede has activated a further 20,000 MyID licences for a major
SafeNet banking customer.

Europe
1. Thales e-Security have secured their first contract in the Middle East
for their OEM version of MyID.
2. Siemens are supplying a major European telecoms company with MyID to
issue smart cards loaded with qualified certificates.

Results
Sales during the period totalled #1,241,000 which, at a gross margin of 96%,
resulted in an operating profit of #2,000. This compares to prior year
comparative period sales of #535,000 at a gross margin of 87% and an operating
loss of #538k. The increase in gross margin reflects an increase in the
proportion of own technology sales from 76% to 92%.

The main sales during the period related to the completion of prior year
commitments i.e. DoT Ireland, European Notaries and RSA European aerospace
contractor along with the impact of the new licensing deal with RSA Security, a
further significant order from Gemplus for a major UK customer and orders from
the Met Police and Siemens.

As at 30 September 2005, the Group had net cash balances totalling #1,030,000.
During the six months ended 30 September 2005, the cash inflow before financing
was #358,000 which compares with a cash outflow of #451,000 during the
comparative period.

Outlook
The Company expects to see continued strong growth in our market sector and in
our share of this market over the coming months. We anticipate that our new and
existing distribution partners will start to generate recurring revenues as they
respond to increasing demand for identity cards for corporate and governmental
applications around the World.


Richard Parris
Chairman & Chief Executive
15 December 2005

Enquiries:
Intercede Group plc
Tel. [phone]
Richard Parris - Chairman & Chief Executive
Andrew Walker - Finance Director

[ariane] 07/12/2005 17:57

Oberthur The Next Target Unless It's Smart

Wednesday, December 07, 2005 5:52:50 AM ET
Dow Jones Newswires



0943 GMT [Dow Jones] Oberthur (12413.FR) +1.7% at EUR7.9 as market looks for next consolidating move in smart-card sector after Axalto (AXL.FR) and Gemplus (5768.FR) announce merger. "This increases bid speculation on Oberthur," says an analyst. Believes "either Oberthur merges or buys a smaller company like G&D," (Giesecke & Devrient) or Oberthur "will get bought up by a company like Safran (7327.FR)." (SIN)

[ariane] 07/12/2005 10:12

Oberthur Better Partner For Gemplus -Analyst

Wednesday, December 07, 2005 4:37:40 AM ET
Dow Jones Newswires



0818 GMT [Dow Jones] Although Gemplus' (5768.FR) merger with Axalto (AXL.FR) creates an undisputed leader in the smart card business, a merger with Oberthur (12413.FR) would have been more attractive, says Fideuram Wargny. Reiterates hold recommendation on Gemplus with a EUR2.4 target price. Trading in Alxalto and Gemplus is suspended until 1130 GMT. Alxalto shares closed at EUR22.8. Gemplus closed at EUR2.3. (LAF)

[ariane] 07/12/2005 07:28

Gemplus, Axalto agree merger via 25-for-2 share exchange

PARIS (AFX) - Gemplus and Axalto said they have agreed to a merger via a
share exchange.
The exchange ratio is two Axalto shares for every 25 Gemplus shares, plus a
payout of 0.26 per eur per share to be made pre-offer by Gemplus to its
shareholders.
The new entity - Gemalto - is expected to deliver some 85 mln eur of net
annual synergies by the thid year following closure of the deal, they said.
It is seen generating pro-forma 2005 revenues of around 1.8 bln eur.
[e-mail]
jms

[ariane] 19/10/2005 08:47

ID Data says Polish card manufacturing plant opens 1 mth ahead of schedule

LONDON (AFX) - ID Data PLC, which provides secure, card-based transaction
systems and services to the international banking, retail, government and secure
access sectors, said its Polish card manufacturing plant has been opened, one
month ahead of schedule, and is now fully operational.
The new manufacturing facility is based in Bydgoszcz, Poland and is a joint
venture with Ortis, a Polish print group, and Argo, a Polish card services
company.
Initially, the plant has the capacity to produce 150 million cards per year
with this figure rising to 250 million cards over the next 15 months.
With the increased capacity, ID Data said it intends, through a newly
created trade division, to supply cards to customers based throughout Europe,
the Middle East and Africa. ID Data believes that, due to Poland's position
within Europe and Euro-based pricing, the company will be able to capture
additional market share in Eastern Europe.
Chief executive Peter Cox said the move to Poland, and associated cost
reductions, will be an important factor contributing to ID Data's move towards
profitability.
"We are now in a solid position to expand our global coverage and reinforce
our ambitions to become a profitable market leader in our industry."
[e-mail]
slm/

[wjccghcc] 27/9/2005 15:12

Thanks Ariane. Interesting.

[ariane] 27/9/2005 15:06

Thales wins Moroccan govt contract to supply national ID card system - UPDATE

(Adds value of contract)

PARIS (AFX) - Thales said it has won a contract from the government of
Morocco to supply a system to produce and personalise national identity cards
based on contactless smart card tecnnologies.
A spokesman valued the contract at more than 100 mln eur.
Thales said it will manage production of the cards for four years, during
which 20 mln cards will be produced.
[e-mail]
afp/mjs/cml

[ariane] 27/9/2005 06:53

Gemplus Seeks More Purchases to Strengthen Security Business
Sept. 27 (Bloomberg) -- Gemplus International SA, the world's largest maker of smart cards, said it was looking for more acquisitions to increase its market share in the identity and security business.

``There could be well be additional acquisitions,'' Alex Mandl, the Senningen, Luxembourg-based company's chief executive officer, said in an interview in Singapore today. ``We think that in the identity security business there are certain segments that could further strengthen our overall systems and solutions approach.''

Gemplus is seeking to reduce the company's reliance on phone and wireless cards, which accounted for three-quarters of last year's 865 million euros ($1 billion) in sales. The company had 388 million euros in cash on its balance sheet at the end of 2004. Gemplus said in April it agreed to buy Finland-based Setec, which supplies security documents including electronic passports.

Setec provides passports to Finland, Sweden, Denmark, Norway and Lithuania. The Finnish company was included in the group of businesses that won a contract for Singapore's electronic passport.

Gemplus's Mandl said consolidation in the smart card industry is ``certainly a possibility.''

``Who's the best match and who would be the best combination is a matter of speculation,'' he said.

Gemplus said in April it expected 2005 revenue to increase about 10 percent.

[waldron] 14/9/2005 09:43

Oberthur Valuation Attractive Post 1H -Aurel

Wednesday, September 14, 2005 3:16:56 AM ET
Dow Jones Newswires



0705 GMT [Dow Jones] Aurel Leven maintains buy rating on Oberthur Card Systems (12413.FR) post 1H results, saying the "good performance," keeps the company's valuation "attractive." Notes operating margin was particularly strong, up 8.9%. Awaits more information from company during analysts' meeting at 0730 GMT before possibly revising forecasts. Shares +2.4% at EUR7.8. (SIN)

[maywillow] 05/9/2005 10:30

Fraudsters show how to beat chip and pin

Card payment risks multiply as till staff trained to look away

Tim Radford, science editor
Monday September 5, 2005
The Guardian


Chip-and-pin technology, the latest weapon against credit card crime, will not reduce fraud and could make it easier, a criminologist argues today.
Reliance on a personal identity number, rather than human vigilance, could create new opportunities for the unscrupulous.

Credit card and bank fraud is estimated to cost £500m a year in Britain, and public concern about identity theft is high.

Emily Finch, of the University of East Anglia, will tell the British Association for the Advancement of Science meeting in Dublin that she and a colleague interviewed credit card criminals, and saw for themselves the routine lapses at cash registers, which are often the front line in fighting fraud.

"There are various strategies that fraudsters use to get around the pin problem," she said. "One of the things that is very clear is that it is a difficult matter for a fraudster to get hold of somebody's card and then find out the pin.

"So the focus has been changed to finding the pin first, which is very, very easy if you are prepared to break social convention and look when people type the number in at the point of sale.

"As slightly dodgy characters, we have been lurking around doing these things," she said.

"We haven't been doing the follow up, which is going and stealing the card and using it; but we have been looking at the strategies that fraudsters use, and putting them into practice to see how easy they are - and it is remarkably easy. People don't focus on what other people behind them are doing."

Professional fraudsters did their research first: there would be no point in stealing a card from someone who didn't have much money. Fraud was an organised and professional career in which people advanced their skills.

"One of the things we found quite alarming was how much the human element has been taken out of point-of-sale transactions," Dr Finch said. "Point-of-sale staff are told to look away when people put their pin number in; so they don't check at all.

"As part of our research - my colleague is male - we have been using each other's cards to buy things. And not once in the whole period that we did this, did anybody say to me, 'This is a man's card, this isn't your card.'"

Criminals were increasingly making fraudulent card applications, to have unchallenged use of a card for a period.

"If you think about a credit card application, it doesn't require much information about an individual," Dr Finch said. "It certainly doesn't require anything that can't be found out with a bit of research."

Some strategies relied on trust. Another fraudster trick was to produce a stolen card and pretend to misremember the number and search for it on a piece of paper.

Imagine, she said, someone searching for a piece of paper and saying, "Oh yes, that's my signature"; there would be instant suspicion.

But there was utter trust in the new technology to pick up a fraudulent transaction, and criminals exploited this trust to get around the problem of having to enter a pin number.

"You go in, you put the card in, you type any number because you don't know what it is. It won't go through. The fraudster - because fraudsters are so good with people - says, 'Oh, it's no good, I haven't got the hang of this yet. I could have sworn that was my number... I've probably got it confused with my other card.'

"They chat for a bit. The sales assistant, who is either disinterested or sympathetic, falls back on the old system, and swipes the card through.

"Because a relationship of empathy has already been established, and because they have already become accustomed to averting their gaze when people put pin numbers in, they don't check the signature at all.

"So fraud is actually easier. There is very little vigilance at the point of sale any more. Fraudsters know this and they are taking advantage of it."

[ariane] 29/8/2005 06:48

Axalto Takes the Lead in China to Provide More Secure Payment Experience



Axalto Palmera Achieves the First EMV Certification in China

¶ Axalto (EURONEXT:AXL)(EURONEXT:NL0000400653), the world's leading
provider of microprocessor cards, today announced that its Palmera
product has achieved the first EMV certification issued in China.
Based on the debit/ credit specification by People's Bank of China
(PBOC), this certification is awarded by the China Banking Card Test
Center. It is also fully compliant to the international EMV2000
standard.
¶ With this certification, Axalto Palmera has also become the
world's first product that supports Visa, MasterCard, JCB and the
latest China EMV applications all on a single card. Among which, China
UnionPay, MasterCard and Visa applications are the most used by China
banking cards currently. As such, Axalto Palmera is well positioned to
be the ideal choice for China EMV migration, and in turn propel the
growth of multi-applications offerings.
¶ "While EMV migration brings more secured payment transaction to
the users, it also creates opportunities for banks to further
differentiate itself from competitors by offering personalized and
more sophisticated multi-application services to their customers."
said Zhimin Zhang, manager of the banking card department of People's
Bank of China. "As banks in China roll out EMV migration plans under
the guidance of PBOC, it poses great opportunities for both the
domestic and international banking cards industry."
¶ "By supporting a wide range innovative applications, Axalto
Palmera will enable China banks to empower consumers with value-added
services, and open a new world of exciting business opportunities."
See Weng Chan, Vice President of Axalto China says, "As the world
leader in financial smart cards, Axalto looks forward to share its
global experiences with China banks, to jointly bring to Chinese users
a more secure and enjoyable smartcard payment experience in the near
future. "

¶ Note to Editors

¶ EMV is a set of global specifications jointly promoted by Europay,
MasterCard, Visa and JCB for cards, terminals, and applications.
Designed to facilitate correct operation and interoperability on smart
card transactions for debit and credit, many countries have observed
an increased adoption of EMV chip cards.
¶ Deployed in hundreds of projects worldwide, Axalto Palmera is the
ideal EMV choice to support a great variety of applications, including
loyalty programs, local ATM schemes, and on-line banking services.
Coupled with its post-issuance flexibility for application updates,
guaranteed confidentiality and dynamic transaction authentication,
Palmera empowers banks in China to bring major benefits their
customers.

¶ About Axalto

¶ Axalto (EURONEXT:AXL)(EURONEXT:NL0000400653) is the world's
leading provider of microprocessor cards (Gartner 2005, Frost &
Sullivan 2004) - the key to digital networks - and a major supplier of
point-of-sale terminals. Its 4500 employees come from over 60
nationalities and serve customers in more than 100 countries, with
worldwide sales exceeding 3 billion smart cards to date. The company
has 25 years' experience in smart card innovation and leads its
industry in security technology and open systems. Axalto continuously
creates new generations of products for use in a variety of
applications in the telecommunications, finance, retail, transport,
entertainment, healthcare, personal identification, information
technology and public sector markets. Microprocessor cards provide
convenience, security and privacy to public and private services
operators, their customers and end users.

¶ For more info, please visit www.axalto.com

¶ Issued on Behalf of Axalto by Bentley Porter Novelli

[grupo] 27/7/2005 07:46

Gemplus says strong Q2 confirms positive outlook for FY
07.27.2005, 02:45 AM

LONDON (AFX) - Gemplus SA said operating profit for the second quarter more than tripled to 22.4 mln eur from 6.8 mln, adding that the strong results for the period confirms the company's positive outlook for the full year.

Second quarter sales rose 12.2 pct to 236.2 mln from 210.5, as the company achieved its highest gross margin in four years, 33.9 pct, up 1.6 percentage points from a year earlier. It said its strong revenue growth was led by the Americas and EMEA.

Net profit for the period was 21.8 mln eur, compared with 1.1 mln.

[e-mail]

[waldron] 17/7/2005 04:50

High-street fraudsters switch to the internet to beat chip and PIN
By Abigail Townsend
Published: 17 July 2005
Attempted online fraud has almost doubled since chip and PIN technology, intended to make credit card transactions safer, was introduced.

According to research by Retail Decisions, a specialist in fraud prevention and payment processing, fraudsters have stepped up their activities by 70 per cent in the six months since chip and PIN was rolled out at the beginning of this year.

Chief executive Carl Clump blamed the increase, which he called "huge", on the new technology making it tougher for criminals to commit credit card fraud in shops.

"The fraudsters have changed their approach. They have mortgages to pay, they go on holiday, and if something is going to threaten their livelihood, they will do something about it. Fraud doesn't ever go away; it just moves on to the next weakest link in the chain."

Internet sales have boomed in recent years. While most "bricks and mortar" outlets reported a tough Christmas, online sales continued to grow as shoppers turned their backs on the high streets. Around 10 per cent of all credit card transactions are now made online.

A spokeswoman for chip and PIN at the Association for Payment Clearing Services said the technology in itself could not stop all fraudsters: "New ways to commit fraud come hand in hand with emerging technologies, and the internet is a perfect example.

"Compared to the amount of people using the internet, the proportion of fraud isn't huge.

"The risk isn't huge, but there are things you need to do if you shop online, like using a secure PC, having a firewall installed and using security software.

"You need to be as wary online as you would be opening your front door."

Attempted online fraud has almost doubled since chip and PIN technology, intended to make credit card transactions safer, was introduced.

According to research by Retail Decisions, a specialist in fraud prevention and payment processing, fraudsters have stepped up their activities by 70 per cent in the six months since chip and PIN was rolled out at the beginning of this year.

Chief executive Carl Clump blamed the increase, which he called "huge", on the new technology making it tougher for criminals to commit credit card fraud in shops.

"The fraudsters have changed their approach. They have mortgages to pay, they go on holiday, and if something is going to threaten their livelihood, they will do something about it. Fraud doesn't ever go away; it just moves on to the next weakest link in the chain."

Internet sales have boomed in recent years. While most "bricks and mortar" outlets reported a tough Christmas, online sales continued to grow as shoppers turned their backs on the high streets. Around 10 per cent of all credit card transactions are now made online.
A spokeswoman for chip and PIN at the Association for Payment Clearing Services said the technology in itself could not stop all fraudsters: "New ways to commit fraud come hand in hand with emerging technologies, and the internet is a perfect example.

"Compared to the amount of people using the internet, the proportion of fraud isn't huge.

"The risk isn't huge, but there are things you need to do if you shop online, like using a secure PC, having a firewall installed and using security software.

"You need to be as wary online as you would be opening your front door."