Gemalto Looks to 3M Cogent Acquisition to Offset ‘Disappointing’ H1 Results

Gemalto has issued its results for the first half of the year.

The company’s revenues came in at €1.393 billion, compared to €1.495 billion in the first half of 2016. Profit from operations came in at €92.8 million, compared to a profit of €171.7 million for the first half of 2016; and Gemalto saw a net profit of €39.4 million, compared to €106.4 million a year ago.

In a statement announcing the results, Gemalto CEO Philippe Vallée explained that the results were “disappointing” due to certain challenges faced by the company in the second quarter of the year, including “on-going adjustments in US EMV demand,” which affected its US payments business; and that “the removable SIM business deteriorated faster than we expected.” But Vallée also predicted “year-on-year stable revenue” in the second half thanks in part to advancements in Gemalto’s enterprise, government, and M2M activities. The CEO added that he has directed the company to “rapidly integrate” 3M Cogent, the biometric identity management business that Gemalto acquired in late spring, suggesting that the investment is expected to produce a substantial payoff for the company going forward.

Gemalto anticipates an operations profit of somewhere between  €200 million and €230 million for the second half of the year.