Gemalto has issued its corporate update for Q3, showing an expected dip in revenues with anticipated growth to come in Q4.
The company’s total revenues came in at €727 million, a three percent drop compared to the third quarter of last year. Its Identity, IoT & Cybersecurity business showed only a modest change, dropping about one percent year-over-year at €345 million in revenues. Meanwhile its Smartcards & Issuance business showed a bigger drop, of four percent, at €382 million for the quarter.
In a statement announcing the results, Gemalto CEO Philippe Vallée noted that the revenues dips were expected “as large programs in both the Governments and Cybersecurity businesses are being delivered in the fourth quarter of 2018.”
In particular, Gemalto is anticipating strong Q4 revenues from “significant e-documents programs rolling out in the US and Latin America”, according to the company’s statement, as well as from “the first deliveries of the UK passport.” There will also be “several encryption program deployments” across Europe and the US.
Meanwhile, there was strong growth in certain parts of the company’s operations in Q3, with Gemalto noting “a strong increase in deployments of its secure connectivity solutions for IoT industrial applications,” and that its software monetization and authentication sub-business lines posted a solid performance.” And Gemalto is expecting a big uptick in demand for its eSIM solutions in the wake of Apple’s introduction of eSIM technology in its latest iPhones.
The corporate update arrives an ongoing effort to acquire necessary regulatory approvals for Thales’ proposed acquisition of Gemalto. The company gave this a brief mention in its update, asserting that it still expects the transaction to close in Q1 of next year.