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Gemalto reports 19 percent rise in Q1 revenue

Published 04/29/2015, 07:01 PM
Updated 04/29/2015, 07:02 PM
© Reuters. The shadow of an attendee is cast below a logo of Franco-Dutch technology firm Gemalto during a news conference in Paris
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(Reuters) - Mobile chip and smart card maker Gemalto (AS:GTO) reported a 19 percent rise in first-quarter sales on constant exchange rates, its first release of results since finalizing the acquisition of U.S. data security company SafeNet in January.

First quarter revenue rose to 686 million euros ($762.49 million) compared to 532 million euros in the previous year.

The company beat analysts' expectations of 675 million euros in quarterly revenue.

Gemalto, which makes smart chips for mobile phones, bank cards and biometric passports, said Payment & Identity segment's revenue was 369 million euros for the first quarter, an increase of 35 percent compared to the previous year, helped by the SafeNet acquisition.

The mobile segment posted revenue of 316 mln euros, up 7 percent at constant exchange rates compared to the previous year.

The Franco-Dutch company did not give annual profit from operations guidance for 2015 but said it anticipates steady expansion in the year, on course towards its upgraded target of more than 660 million euros for 2017.

The company acknowledged in January that U.S. and British spies were likely to have hacked its technology in an attempt to steal codes that protect the privacy of mobile phone users. 

© Reuters. The shadow of an attendee is cast below a logo of Franco-Dutch technology firm Gemalto during a news conference in Paris

Shares of Gemalto are up 22.6 percent this year. They closed at 81.20 euros on Wednesday, outperforming a 14.4 percent rise in the European technology index (SX8P). The group has a market value of 7.35 billion euros, and shares are approaching a 2014 high of about 87 euros.

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