PARIS Aug 28 Digital security firm Gemalto
said first-half net profit rose 8.4 percent to 95.4
million euros ($126.1 million) thanks to a strong performance in
mobile financial services and payment cards.
The company, which makes smart chips for mobile phones, bank
cards and biometric passports, said lower revenue in
"eGovernment documents" weighed on the first half, where total
sales were flat.
But the group reconfirmed the profit forecasts for the years
ahead that it made earlier in August along with the announcement
of a U.S. acquisition.
Gemalto said on Aug. 8 it would buy U.S.-based data
protection specialist SafeNet for $890 million in a move set to
boost its earnings and reach.
The company confirmed on Thursday that it now expects
double-digit profit growth in 2014 excluding the impact of the
It also confirmed that the deal should allow it to raise its
2017 target for profit from operations of 600 million euros by
"We extended our commercial momentum as revenue growth
accelerated in the Mobile segment and new contracts were signed
in the Payment & Identity segment that will generate significant
revenue," Chief Executive Olivier Piou said.
He added that recent launch and expansion efforts "all
support our expectation for an accelerated revenue growth in the
second part of the year".
(1 US dollar = 0.7567 euro)
(Reporting by Andrew Callus; Editing by James Regan)