Gemalto 2nd-Quarter Sales Decline 6%; Shares Plunge

Gemalto NV, the world's largest maker of smart cards, said second-quarter sales dropped 6 percent because of slowing demand for mobile-phone cards. The shares plunged.

Revenue declined to 397.8 million euros ($546.1 million), the company said in an advertisement published today in French newspaper La Tribune. The company did not provide a figure for sales a year earlier. Operating profit as a percentage of sales in the first half will drop from a year earlier because of reduced license revenue, the company said.

Shares of Gemalto slumped 1.61 euros, or 8.4 percent, to 17.54 euros in Paris, giving Gemalto a market value of 1.6 billion euros. The stock has fallen 7.1 percent this year.

Based in Meudon near Paris, Gemalto reiterated its forecast for operating profit to be above 10 percent of sales in 2009, according to the statement.

To contact the reporter on this story: Fabio Benedetti-Valentini in Paris at fbenedettiva@bloomberg.net.

To contact the editor responsible for this story: Victoria Richards at vrichards@bloomberg.net

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