Gemalto Rises Most Since 2009; Security Sales Climb
Gemalto NV rose the most in more than a year in Paris trading after reporting a 25 percent increase in third-quarter revenue, led by its security and secure payments businesses.
The maker of smartcards and biometric passports rose 7.2 percent to 32.3 euros, its biggest jump since Aug. 25, 2009. The Meudon, France-based company today reported a 58 percent increase in sales of security equipment, to 83 million euros ($116 million), while secure transaction sales rose 12 percent to 119 million euros.
The transaction business “continues to benefit from strong underlying growth driven by migration to EMV payment cards,” or so-called chip-and-PIN credit and debit cards, Berenberg Bank analyst Ali Farid Khwaja said in a note to clients. Growth in the security segment was boosted by strong public-sector demand, he added.
Gemalto and other chipmakers are betting that rising demand for electronics embedded in household appliances, industrial equipment and secure documents such as driver licenses will propel growth. Intel Corp., the world’s largest producer of semiconductors, estimated this year that the “machine to machine” market for chips will account for about $1 billion in revenue in 2010.
VeriFone Systems Inc. and Gemalto yesterday said they will form a partnership to encourage the rollout of chip-and-PIN cards in the U.S., where they remain rare compared with Europe. The alliance may also lead to a sale of Gemalto’s point-of-sale business to VeriFone, the companies said.
Gemalto bought Germany’s Cinterion Wireless Modules GmbH in July for $163 million, adding to its machine-to-machine communications technology for products such as utility meters, and acquired online-banking security provider Todos AB in April.
To contact the editor responsible for this story: Vidya Root at email@example.com.