Gemalto reports $867.4M revenue in Q2, 2017 outlook revision
Gemalto issued its preliminary H1 2017 results, which included reported revenue of €742 million (US$867.4 million) in Q2 2017, a 9 percent decrease at constant exchange rates compared to Q2 2016.
For H1 2017, Gemalto profit from operations is in line with expectations at approximately €93 million (US$108.8 million).
The company said that expects its Q2 2017 double digit decline for payment in Americas and SIM business to continue for the rest of the year.
Fortunately, this decline will be offset by the expected revenue acceleration in enterprise, machine-to-machine and government programs including 3M Identity Management Business, leading to a stable revenue year-on-year for H2 2017.
Factoring in these revenue trends, Gemalto said that the operating leverage of its payment and SIM businesses will not be realized as expected.
The impact of the company’s transition plan announced in April is expected to start contributing materially towards the end of 2017.
Gemalto estimates its H2 2017 profit from operations to fall between €200 million (US$233.8 million) and €230 million (US$268.9 million).
As a result of the deteriorated prospects for the removable SIM market, Gemalto is expected to book a non-cash goodwill impairment charge of approximately €420 million (US$491.1 million) in the first semester of 2017.
Gemalto will reveal further details when it publishes its H1 2017 results on September 1.
The company recently announced it is releasing the Gemalto Assurance Hub, a machine learning-powered fraud prevention solution for online banking that analyzes the profile and the behavior of customers in real time.