Gemalto First Quarter 2013 Revenue

  Gemalto First Quarter 2013 Revenue

  *Revenue up +9% at constant exchange rates, growing in all segments
  *Double-digit revenue increases in Secure Transactions and in Security
  *Excellent performance of Platforms & Services, up +29% at constant
    exchange rates

Revenue figures in this document are for ongoing operations^1 and variations
are at constant exchange rates except where otherwise noted. Revenue figures
including contribution of assets held for sale and variations at historical
rates are provided in the appendix of this document. All figures presented in
this press release are unaudited.

Business Wire

AMSTERDAM -- April 24, 2013

Regulatory News:

Gemalto (Euronext NL0000400653 - GTO), the world leader in digital security
today announces its revenue for the first quarter of 2013.

quarter 2013                                                                                             Total         Total
Ongoing         Mobile           Machine-to-    Secure          Security    Patents    first      first
operations         Communication       Machine           Transactions                                    quarter       quarter
(€ in                                                                                                    2013          2012
Revenue         239              45             143             91          0          518        483
at                 +4%                 +3%               +13%               +21%           n.m.          +9%

Olivier Piou, Chief Executive Officer, commented: “First quarter growth
extends last year’s strong performance. The Platforms & Services activity
carries on its fast development, delivering almost half of the quarter’s
revenue growth. We continue to build on the long-term contracts in place and
add new clients who want to secure mobile access to their services. Electronic
identity programs deployed by governments modernizing their services remain on
their outstanding trajectory, driving Security growth to +21%. Sales of
high-end products to mobile network operators continue to expand and are
expected to accelerate over the year as additional LTE and mobile payment
services are launched. With this good start, we are on track to deliver on our
strong 2013 outlook.”

                Basis of preparation of financial information

Ongoing operations

For a better understanding of the current and future year-on-year evolution of
the business, the Company provides revenue from “ongoing operations” for both
2013 and 2012 reporting periods.

The adjusted income statement for ongoing operations excludes, as per the IFRS
income statement, the contribution from discontinued operations to the income
statement, and also the contribution from assets classified as held for sale
and from other items not related to ongoing operations.

In this publication reported figures for ongoing operations only differ from
figures for all operations by the contribution from assets held for sale.

Appendix 3 bridges the revenue for ongoing operations to the revenue for all

Historical exchange rates and constant exchange rates figures

Revenue variations are at constant exchange rates except where otherwise

The Company sells its products and services in a very large number of
countries and is commonly remunerated in currencies other than the Euro.
Fluctuations in exchange rates of these other currencies against the Euro have
a translation impact on the reported Euro value of the Company revenues.
Comparisons at constant exchange rates aim at eliminating the effect of
currencies translation movements on the analysis of the Group revenue by
translating prior year revenues at the same average exchange rate as applied
in the current year.

                             General information

to first           Mobile              Machine-to-       Secure                                          Total
quarter         Communication    Machine        Transactions    Security    Patents    ongoing
2013 revenue                                                                                             operations
by segment
As a
percentage      46%              9%             28%             18%         0%         100%
of revenue

Contribution to first             Embedded                          Total
quarter                        software      Platforms     ongoing
2013 revenue growth by            & Products       & Services       operations
As a percentage of revenue     51%           49%           100%

For the period, revenue for ongoing operations was up by +9% year-on-year at
constant exchange rates to €518 million, growing in all regions.

All main segments increased their revenue. The strong contribution from Secure
Transactions and Security, which together represented 45% of the total Company
revenue in the first quarter, evidences the Company’s portfolio of growth

Revenue from Platforms & Services activities grew by +29%, showing
double-digit expansion in all segments. This increase represented 49% of the
total revenue growth at constant rates in the first quarter, illustrating the
build-up of customer contracts activated over the previous semesters.

During the first quarter, effects of currency translation movements were
significant. Revenue expansion was +9% at constant exchange rates and +7% at
historical exchange rates, a 20% difference, due to a particularly strong
impact from fluctuations in Asian currencies. Revenue variations by segment
and by region are presented in appendix 1. Average exchange rates between the
Euro and the US Dollar are presented in appendix 4.

                             Segment information

                             Mobile Communication

€ in millions                First quarter    First quarter
                                2013                2012
Revenue                      238.6            235.2
Year-on-year variation at    +4%              
constant exchange rates

The Mobile Communication segment posted revenue of €239 million, growing by

Revenue from Platforms & Services grew by +33%, reaching €52 million and
representing 22% of the segment revenue. This growth came mainly from LTE
subscriptions management and from the acceleration of mobile payment and
trusted services management (TSM) projects.

In Embedded software & Products, deployments of LTE and NFC products continued
to drive mix improvement. During the quarter Gemalto focused its resources on
projects that require high-end products for deployments expected in the latter
part of 2013. Market contraction in India and disciplined pricing strategy
reduced year-on-year low-end Qipso product revenue by €7 million. Revenue from
mid-range to high-end UpTeq products increased by +2%.


€ in millions                First quarter    First quarter
                                2013                2012
Revenue                      44.5             43.8
Year-on-year variation at    +3%              
constant exchange rates

The Machine-to-Machine segment posted revenue of €45 million, an increase of
+3% at constant exchange rates. The increase in activity was driven by strong
demand in the Americas compensating for slow activity in Western Europe. The
demand for Cinterion modules and data management services stems from
industrial sectors that are integrating mobile connectivity into their product
offerings to reduce costs, improve data collection and deliver higher levels
of service.

                             Secure Transactions

€ in millions                First quarter    First quarter
                                2013                2012
Revenue                      143.2            128.8
Year-on-year variation at    +13%             
constant exchange rates

Secure Transactions posted a +13% revenue increase at €143 million, an
acceleration on the performance recorded in previous quarters, demonstrating
the benefits of the operational investments started in the second part of

The revenue increase in Embedded software & Products came from new countries
migrating to EMV technology with entry-range products. Platforms & Services
also contributed to the growth with an increase in new projects for mobile
payment and trusted service management (TSM).


€ in millions                First quarter    First quarter
                                2013                2012
Revenue                      91.5             75.3
Year-on-year variation at    +21%             
constant exchange rates

Revenue in Security grew by +21% to €91 million with solid growth in both
Government Programs and Identity & Access Management.

The deployment of electronic identity management programs in both fast-growing
and developed economies continued to drive the performance in Government
Programs. These programs include creation and management of national
registries, e-Identity, e-Passport and other e-Government services, all of
which generated further expansion in Platforms & Services as well as in
Embedded software & Products.


€ in millions                First quarter    First quarter
                                2013                2012
Revenue                      0.0              0.3
Year-on-year variation at    n.m.             
constant exchange rates

The activity in Patents continues to be limited due to ongoing litigation
initiated by the Company in the United States, in the Eastern District of

The trial that was expected to happen at the end of the first quarter was
cancelled due to a summary judgment motion filed by the defendants, and
recently granted by the Texas Court.

It has been established that defendants use our Java conversion technology,
reinforcing the validity of our patent portfolio. The defense was focused on a
single claim construction issue that limits the scope of our IP rights related
to this technology. We believe the Texas Court took the practical approach of
letting an Appellate Court determine the merits of the claim construction
issue that was the subject of the summary judgment motion, thereby relieving
it of the burden of a trial until there is a definitive ruling from the
Appellate Court on this issue.

We have resumed bilateral communications with the various parties to amicably
resolve this case. If these efforts are unsuccessful, we expect the
presentation before the Appellate Court to be completed in the Fall of 2013,
and a conclusion of the case in the first half of 2014 if a trial is needed.

                            Additional information

  *Gemalto announced progress in several mobile payments projects for banks,
    mobile carriers and retailers, including.

       *Mobile payment and electronic wallet platforms
         Gemalto was selected to provide the mobile commerce platform for
         Merchant Customer Exchange (MCX), a United States based group of
         leading merchants that collectively operate more than 75,000 stores
         and process more than $1 trillion in payments annually.
         Gemalto’s highly-scalable transaction processing and wallet platform
         enable the mobile payment and loyalty services provided by MCX
         members. As part of this contract, Gemalto will implement and deliver
         MCX’s roadmap for convenient and secure retail payments on all
         smartphones, initially using barcode and cloud-based technology for a
         rapid deployment across MCX members’ retail stores.
       *Trusted service management and UICCs
         New contract for TSM services and NFC UICC were signed across the
         three regions with China Unicom, KDDI in Japan, Telus in Canada, and
         SIA in Italy.

Related press releases:

April 17, 2013: MCX Selects Gemalto for Mobile Commerce Platform

March 7, 2013: TELUS selects Gemalto SIM to enable secure NFC mobile payments

March 5, 2013: SIA uses Gemalto’s TSM platform to link service providers and
speed up nationwide NFC rollout in Italy

February 26, 2013: China Unicom selects Gemalto in China’s first NFC payment

February 26, 2013: KDDI using Gemalto TSM in the world’s first commercial
NFC-based flight boarding service for Japan Airlines

  *Significant achievements were announced in the Security segment in this
    first phase of 2013

       *Leader in Gartner’s 2013 Magic Quadrant
         Gemalto was recognized as a Leader in Gartner’s 2013 Magic Quadrant
         for User Authentication. The Magic Quadrant report presents a
         strategic analysis of key vendors measured on their completeness of
         vision and ability to execute. Vendors surveyed in this report
         account for the majority of the market by customer and end-user
         Gemalto supplies a wide range of authentication software and services
         to thousands of the world’s largest enterprises, service providers
         and governments. Gemalto’s range of Protiva solutions includes an
         expansive portfolio of authentication tools and services designed for
         demanding enterprise environments that need a scalable path to
         upgrade authentication technology to higher levels of security and
         manage the growing need for mobile access.
       *Government Programs : Topping 80^th program deployments
         By being selected to supply Taiwan’s government with its ePassport
         solutions in a multi-year contract, Gemalto is going to deliver on
         its 80th national electronic identity programs deployment.
         Earlier, Gemalto announced it has been appointed as prime contractor
         and turnkey supplier to provide Ghana Immigration Services (GIS) with
         a highly secure electronic visa and border management solution,
         acting as prime contractor and taking responsibility for integrating
         the advanced visa and border management solution, including change
         management, transitional training and maintenance services.

Related press releases:

April 11, 2013: Gemalto Supplies ePassport solution to Taiwan; Tops 80
deployments of national programs worldwide

April 8, 2013: Gemalto selected as prime contractor to implement a complete
visa and border management system in Ghana

April 3, 2013: Gemalto recognized in Gartner’s Magic Quadrant for User


For the full year 2013 Gemalto anticipates double digit expansion in both
profit from operations and revenue at constant exchange rates. Increased
investment in operations to drive business development beyond 2013 should lead
to a more pronounced seasonality in profit from operations between the two
semesters. Gemalto’s next long-term development plan and objectives will be
announced in the second part of the year.

                    Live Audio Webcast and Conference call

Gemalto first quarter 2013 revenue presentation will be webcast in English
today at 3pm Paris time (2pm London time and 9amNew York time).

This listen-only live audio webcast of the presentation and the Q&A session
will be accessible from our Investor Relations web site:


Questions will be taken by way of conference call. Investors and financial
analysts wishing to ask questions should join the presentation by dialing:

    (UK) +442033679453 or (US) +1866907 5923 or (FR) +33 1 7077 0940

The accompanying presentation slide set is also available for download on our
Investor Relations web site.

Replays of the presentation and Q&A session will be available in webcast
format on our Investor Relations web site approximately 3hours after the
conclusion of the presentation. Replays will be available for one year.

                              Reporting calendar

The first semester 2013 results will be reported on Thursday August 29, 2013,
before the opening of Euronext Paris.

                            Stock Exchange Listing

   Gemalto N.V. is dual listed on NYSE Euronext Amsterdam and Paris, in the
                         compartment A (Large Caps).

Mnemonic:              GTO
Exchange                  Dual listing on NYSE Euronext Amsterdam and Paris
Market of reference       NYSE Euronext Paris till April 29, 2013
                          NYSE Euronext Amsterdam from April 30, 2013
ISIN Code                 NL0000400653
Reuters                   GTO.PA
Bloomberg                 GTO:FP, GTO:NA

Gemalto has also established a sponsored Level I American Depository Receipt
(ADR) Program in the United States since November 2009. Each Gemalto ordinary
share is represented by two ADRs. Gemalto’s ADRs trade in U.S. dollar and give
access to the voting rights and to the dividends attached to the underlying
Gemalto shares. The dividends are paid to investors in U.S. dollar, after
being converted into U.S. dollar by the depository bank at the prevailing

Structure    Sponsored Level I ADR
Exchange        OTC
Ratio           (ORD:DR) 1:2
DR ISIN         US36863N2080
DR CUSIP        36863N 208

                                About Gemalto

Gemalto (Euronext NL0000400653 GTO) is the world leader in digital security
with 2012 annual revenues of €2.2 billion and more than 10,000 employees
operating out of 83 offices and 13 Research & Development centers, located in
43 countries.

We are at the heart of the rapidly evolving digital society. Billions of
people worldwide increasingly want the freedom to communicate, travel, shop,
bank, entertain and work – anytime, everywhere – in ways that are enjoyable
and safe. Gemalto delivers on their expanding needs for personal mobile
services, payment security, authenticated cloud access, identity and privacy
protection, eHealthcare and eGovernment efficiency, convenient ticketing and
dependable machine-to-machine (M2M) applications. We develop secure embedded
software and secure products which we design and personalize. Our platforms
and services manage these products, the confidential data they contain and the
trusted end-user services made possible.

Our innovations enable our clients to offer trusted and convenient digital
services to billions of individuals. Gemalto thrives with the growing number
of people using its solutions to interact with the digital and wireless world.

     For more information visit,,
     , or follow @gemalto on Twitter.

This communication does not constitute an offer to purchase or exchange or the
   solicitation of an offer to sell or exchange any securities of Gemalto.

This communication contains certain statements that are neither reported
financial results nor other historical information and other statements
concerning Gemalto. These statements include financial projections and
estimates and their underlying assumptions, statements regarding plans,
objectives and expectations with respect to future operations, events,
products and services and future performance. Forward-looking statements are
generally identified by the words "expects", "anticipates", "believes",
"intends", "estimates" and similar expressions. These and other information
and statements contained in this communication constitute forward-looking
statements for purposes of applicable securities laws. Although management of
the Company believes that the expectations reflected in the forward-looking
statements are reasonable, investors and security holders are cautioned that
forward-looking information and statements are subject to various risks and
uncertainties, many of which are difficult to predict and generally beyond the
control of the Company, that could cause actual results and developments to
differ materially from those expressed in, or implied or projected by the
forward-looking information and statements, and the Company cannot guarantee
future results, levels of activity, performance or achievements. Factors that
could cause actual results to differ materially from those estimated by the
forward-looking statements contained in this communication include, but are
not limited to: trends in wireless communication and mobile commerce markets;
the Company's ability to develop new technology and the effects of competing
technologies developed; effects of the intense competition in the Company's
main markets; challenges to or loss of intellectual property rights; ability
to establish and maintain strategic relationships in its major businesses;
ability to develop and take advantage of new software, platforms and services;
profitability of the expansion strategy; effects of acquisitions and
investments; ability of the Company's to integrate acquired businesses,
activities and companies according to expectations; ability of the Company to
achieve the expected synergies from acquisitions; and changes in global,
political, economic, business, competitive, market and regulatory forces.
Moreover, neither the Company nor any other person assumes responsibility for
the accuracy and completeness of such forward-looking statements. The
forward-looking statements contained in this communication speak only as of
the date of this communication and the Company or its representatives are
under no duty, and do not undertake, to update any of the forward-looking
statements after this date to conform such statements to actual results, to
reflect the occurrence of anticipated results or otherwise except as required
by applicable law or regulations.


All variations in these appendices are comparing the revenue of the first
quarter 2013 to the revenue of the first quarter 2012. For a better
understanding of Gemalto’s year-on-year business evolution, the revenue
figures have been calculated for ongoing operations, as described in the basis
of preparation of this document, unless otherwise mentioned.

                                  Appendix 1

                  Revenue from ongoing operations, by region

Ongoing                                      Year-on-year         Year-on-year
operations       First         First         variation at         variation at
(€ in         quarter    quarter    constant          historical
millions)        2013          2012          exchange rates       exchange
EMEA          258        243        +6%               +6%
North &
South            153           144           +9%                  +7%
Asia          107        96         +17%              +11%
Total         518        483        +9%               +7%

                                  Appendix 2

         Revenue variations at constant and historical exchange rates

Ongoing                                                                                                  Total         Total
operations      Mobile           Machine-to-    Secure          Security    Patents    first      first
(€ in              Communication       Machine           Transactions                                    quarter       quarter
millions)                                                                                                2013          2012
Revenue         239              45             143             91          0          518        483
variation at
constant           +4%                 +3%               +13%               +21%           n.m           +9%
variation at
historical      +1%              +2%            +11%            +21%        n.m.       +7%

                                  Appendix 3

              Revenue from ongoing operations and all operations

             Ongoing operations                                                                                        
Revenue                                                                                               Total            Assets
(€ in        Mobile           Machine-to-    Secure          Security    Patents    Ongoing       held      Total
millions)       Communication       Machine           Transactions                                    operations       for          Gemalto
quarter         239              45             143             91          0             518              2            520
quarter      235              44             129             75          0          483           2         485

                                  Appendix 4

          Average exchange rates between the Euro and the US dollar

EUR/USD           2013    2012
First quarter     1.33    1.32
Second quarter           1.30
First half               1.31
Third quarter                   1.24
Fourth quarter           1.29
Second half              1.26
Full year                1.29


Investor Relations
Gabriel Rangoni, +33 6 1426 6956
John Lineberger, +33 6 1243 6304
Corporate Communication
Isabelle Marand, +33 6 1489 1817
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