Record revenue at over € 2.2 billion, up +9%, and double-digit growth anticipated in 2013
Profit from ongoing operations up +26%, surpassing the €300 million objective a year in advance
Platforms & Services revenue up +26%, with double-digit growth in all segments
To better assess past and future performance, the income statement is presented on an adjusted basis (see page 2 “Basis of preparation of financial information”). Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable IFRS measures and should be read only in conjunction with the consolidated financial statements. The reconciliation with the IFRS income statement is presented in Appendix 2. The statement of financial position is prepared in accordance with IFRS, and the cash position variation schedule is derived from the IFRS cash flow statement.
(BUSINESS WIRE)-- Regulatory News:
Gemalto (Euronext NL0000400653 - GTO), the world leader in digital security today announces its results for the full year 2012.
Key figures of the adjusted income statement
Year-on-year variations
Ongoing operations1 (€ in millions)
Full year 2012
Full year 2011
at historical exchange rates
at constant exchange rates
Revenue
2236
1984
+13%
+9%
Gross profit
862
745
+16%
Operating expenses
(557)
(503)
+11%
Profit from operations
305
241
+26%
Profit margin
13.6%
12.2%
+1.5 ppt
Olivier Piou, Chief Executive Officer, commented: “Gemalto achieved a milestone year, posting record results and delivering faster than planned on what we set out to do: over the past three years we grew our revenue and profit by close to 40% and 80% respectively, and kept a strong net cash position. In 2012, we also secured a large number of long-term contracts in the mobile payment and government sectors, which will bolster our profitable expansion into the future. With the growth opportunities that we see in front of us, we have reinforced the investments in our businesses, preparing to fulfill the ambitions of our next long-term development plan.”
1 See basis of preparation on page 2, and appendix 1 of this document for more information on ongoing operations.
Basis of preparation of financial information
In this press release, the information for the full year of both 2012 and 2011 is presented for “ongoing operations” and under the 2012 format of segment reporting unless otherwise specified
Adjusted income statement and profit from operation (PFO) non-GAAP measure
The consolidated financial statements are prepared in accordance with the International Financial Reporting Standards (IFRS).
To better assess its past and future performance, the Company also prepares an adjusted income statement where the key metric used to evaluate the business and take operating decisions over the period 2010 to 2013 is the profit from operations.
Profit from operations (PFO) is a non-GAAP measure defined as the IFRS operating result adjusted for the amortization and depreciation of intangibles resulting from acquisitions, for share-based compensation charges, and for restructuring and acquisition-related expenses. These items are further explained as follows:
Amortization and depreciation of intangibles resulting from acquisitions are defined as the amortization and depreciation expenses related to the intangibles recognized as part of the allocation of the excess purchase consideration over the share of net assets acquired.
Share-based compensation charges are defined as (i) the discount granted to employees acquiring Gemalto shares under Gemalto Employee Stock Purchase plans; and (ii) the amortization of the fair value of stock options and restricted share units granted by the Board of Directors to employees, and the related costs.
Restructuring and acquisitions-related expenses are defined as (i) restructuring expenses which are the costs incurred in connection with a restructuring as defined in accordance with the provisions of IAS 37 (e.g. sale or termination of a business, closure of a plant,…), and consequent costs; (ii) reorganization expenses defined as the costs incurred in connection with headcount reductions, consolidation of manufacturing and offices sites, as well as the rationalization and harmonization of the product and service portfolio, and the integration of IT systems, consequent to a business combination; and (iii) transaction costs (such as fees paid as part of the acquisition process).
These non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable IFRS measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with IFRS.
In the adjusted income statement, Operating Expenses are defined as the sum of Research and Engineering, Sales and Marketing, General and Administrative expenses, and Other income (expense) net.
EBITDA is defined as PFO plus depreciation and amortization expenses, excluding the above amortization and depreciation of intangibles resulting from acquisitions.
The Appendix 2 bridges the adjusted income statement to the IFRS income statement.
Ongoing operations
For a better understanding of the current and future year-on-year evolution of the business, the Company provides an adjusted income statement from “ongoing operations” for both 2012 and 2011 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.
For the year 2012, reported figures for ongoing operations only differ from figures for all operations by the contribution from assets held for sale and the gain on sale of a subsidiary to an associate.
Compared to figures reported on the full year of 2011, figures for ongoing operations for the full year 2011 reported in this publication were re-presented to also exclude the contribution from assets classified as held for sale in 2012.
Appendix 1 bridges the adjusted income statement for ongoing operations to the adjusted income statement for all operations.
Historical exchange rates and constant currency figures
Revenue variations are at constant exchange rates, except where otherwise noted.
All other figures in this press release are at historical exchange rates, except where otherwise noted.
The Company sells its products and services in a very large number of countries and is commonly remunerated in other currencies than the Euro. Fluctuations in these other currencies exchange rates against the Euro have in particular 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.
IFRS results
The consolidated financial statements are prepared in accordance with the International Financial Reporting Standards (IFRS).
The IFRS consolidated income statement for the full year 2012 shows an operating result of €239 million for the Company, up by +30% year on year. It was €183 million for the full year 2011.
Restructuring and acquisition-related expenses were reduced to €8 million, versus €15 million for 2011. Amortization and depreciation of intangibles resulting from acquisitions also reduced to €21 million versus €25 million for 2011. Equity-based compensation charges, including a new long-term incentive plan put in place for all employees worldwide and the impact of Gemalto’s share price increase, were €39 million versus €32 million for 2011.
Net profit for the full year 2012 was €201 million, up by 25% on the net profit of €161 million for the full year 2011.
Consequently, basic earnings per share were €2.41 for the reported period growing by +25% compared to €1.93 for the full year 2011. Diluted earnings per share were €2.31 increasing by +23% in comparison to €1.88 for the full year of 2011.
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Contacts
Gemalto
Investor Relations
Gabriel Rangoni, +33(0) 6 1426 6956
gabriel.rangoni@gemalto.com
or
John Lineberger, +33(0) 6 1243 6304
john.lineberger@gemalto.com
or
John Lineberger, +33(0) 6 1243 6304
john.lineberger@gemalto.com