Axalto Second Quarter 2005 Revenue Up 15%.AMSTERDAM Amsterdam, city, Netherlands Amsterdam (ăm`stərdăm', Dutch ämstərdäm`), city (1994 pop. 724,096), constitutional capital and largest city of the Kingdom of the Netherlands, North Holland prov. -- Axalto
Axalto was a smart card manufacturer with over 4,500 employees in 60 countries, one of the world's leading providers of microprocessor cards (Gartner, 2005) and also a major supplier of point of sale (EURONEXT  Euronext N.V. is a pan-European stock exchange based in Paris[1] :AXL):
--Revenue of $261 million --Excellent performance in mobile communications: +20% --Strong growth in financial cards: +14% --Over 110 million microprocessor microprocessor, integrated circuit containing the arithmetic, logic, and control circuitry required to interpret and execute instructions from a computer program. cards delivered Axalto (Euronext NL0000400653 - AXL) today reported second quarter 2005 revenue of $260.9 million, a 15% increase compared with $226.9 million second quarter 2004 revenue. For the first six months of 2005 Axalto posted revenue of $498.2 million, a 16% growth over the $430.3 million revenue recorded in the first half of 2004. Commenting on these results Olivier Piou, Axalto's Chief Executive Officer said: "Axalto delivers another impressive performance, in highly competitive conditions. Revenue in mobile communications posted further very solid growth, with lower activity in China completely offset by remarkable successes in the Americas A·mer·i·cas , the See America. , Eastern Europe Eastern Europe The countries of eastern Europe, especially those that were allied with the USSR in the Warsaw Pact, which was established in 1955 and dissolved in 1991. and Africa. Banking cards sales expanded in all regions. The public sector and access product line revenue was essentially stable, not yet benefiting from the national programs aimed at improving citizens and homeland security Noun 1. Homeland Security - the federal department that administers all matters relating to homeland security Department of Homeland Security executive department - a federal department in the executive branch of the government of the United States . Axalto performance during the first half of the year demonstrated once again the effectiveness of its balanced growth model. We can confidently expect very significant progress in our first-half earnings."
Second quarter 2005
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% of the Change at
Axalto Change Quarter's constant
Total exchange
2005 2004 Revenue rates
------ ------
(US$ million)
Cards
Mobile Communications 160.4 134.0 20% 61% 17%
Financial Cards 54.6 48.0 14% 21% 9%
Public Sector, Access
and Others 17.6 18.1 (3%) 7% (5%)
Prepaid (memory) Phone
Cards 10.5 10.1 4% 4% 1%
------ ------
Total Cards 243.1 210.2 16% 93% 13%
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Point-of-sale Terminals 17.7 16.7 6% 7% 1%
====== ======
Total Revenue 260.9 226.9 15% 100% 12%
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Further strong growth in the Cards segment Revenue in the Cards segment came to $243.1 million, up 16% compared with the second quarter of last year. During the period Axalto delivered over 110 million microprocessor cards, a 36% volume growth. The Americas region took over as the second-largest revenue contributor. Strong increase in microprocessor cards revenue Mobile Communications The Mobile Communications product line revenue exceeded $160 million in the quarter. It posted revenue growth of 20% during the second quarter of 2005, a considerable achievement in light of the very strong comparative base of 2004's second quarter. This performance was driven primarily by the increase in volumes of SIM cards SIM card abbr (= subscriber identity module card) → carte f SIM SIM card n (Tel) (= Subscriber Identity Module card) → SIM-Karte f sold, which topped 84 million units over the quarter, up 47%, and by further improvement in the product mix: the share of high-end high-end adj. Informal 1. Appealing to sophisticated and discerning customers: a high-end department store; high-end video equipment. 2. SIM cards grew 35% compared with the same period of last year. These gains did largely offset the SIM cards average sales price reduction, which averaged 19% compared with the second quarter of 2004 due to competitive pressure. Growth in the Europe, Middle East and Africa region came to +15% in the quarter, with very strong sales in Eastern Europe and Africa. Activity in Asia dipped 22% compared with the second quarter of 2004 due primarily to a sizeable decline in revenue recorded in China as a result of the leading local telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. operators reorganisations and stronger pricing pressures. The Americas posted impressive growth, with revenue up 107% compared with the second quarter of the previous year. This remarkable success was driven by a strong increase in the volume of microprocessor cards delivered, and by the considerable improvement in the region's product mix, which now comprises primarily high-end cards. Financial Cards Axalto again posted solid expansion in this product line during the second quarter. Revenue was up 14%, at close to $55 million, with all regions progressing. The volumes of microprocessor cards delivered posted a steep rise of 17%, with over 20 million cards sold in the quarter, while the average selling price The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. of microprocessor cards for banking was essentially stable, up 2%. Public Sector, Access and Other Second-quarter 2005 revenue inched down 3% to $17.6 million. The public sector and transport product lines recorded healthy growth despite delays in some national programs to deploy electronic passports The following is a list of passports: By country and territory
modernize, develop public administration systems. These gains did almost entirely offset significantly lower sales in the pay TV business, which faced heavy price declines that prompted Axalto to not renew certain contracts. Memory cards (without a microprocessor) sales Prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. Phonecards
The product line's revenue increased by 4% owing in particular to a major contract with a longstanding customer. Point-of-sale Terminals segment Revenue in the point-of-sale terminals segment advanced by 6%, to $17.7 million. This performance was driven by market share gains in Europe and India and must be appreciated in the light of the very high comparison basis of 2004' second quarter. Geographical break-down of revenue
Europe, Middle East,
Second quarter 2005 Africa
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Segments Revenue
($ million) Change %
----------------------- --------------- ---------
Cards 125.8 +14%
Point-of-sale Terminals 14.4 +6%
----------------------- --------------- ---------
Total 140.2 +13%
----------------------- --------------- ---------
% Region 54%
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Second quarter 2005 Asia
----------------------- -----------------------
Segments Revenue
($ million) Change %
----------------------- ------------- ---------
Cards 47.0 (20)%
Point-of-sale Terminals 2.8 +28%
----------------------- ------------- ---------
Total 49.8 (18)%
----------------------- ------------- ---------
% Region 19%
----------------------- -----------------------
Second quarter 2005 Americas
----------------------- ----------------------
Segments Revenue
($ million) Change %
----------------------- ------------- --------
Cards 70.3 +71%
Point-of-sale Terminals 0.5 (46%)
----------------------- ------------- --------
Total 70.9 +69%
----------------------- ------------- --------
% Region 27%
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First-time adoption of IFRS IFRS International Financial Reporting Standard(s) IFRS Inter Frame Relay Service IFRS Indiana Facilities Registry System Axalto published its financial statements for the previous periods in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting in the United States of America UNITED STATES OF AMERICA. The name of this country. The United States, now thirty-one in number, are Alabama, Arkansas, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, New Hampshire, , the US GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). standards. In accordance with European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. regulation 1606/2002, Axalto adopted the International Financial Reporting Standards International Financial Reporting Standards (IFRS) are standards and interpretations adopted by the International Accounting Standards Board (IASB). Many of the standards forming part of IFRS are known by the older name of International Accounting Standards (IAS). , IFRS, effective for the first time on January 1, 2005. Adoption of IFRS has no impact on Axalto revenue, neither for the year 2004 nor for the year 2005. To provide you with comprehensive information, Axalto includes in appendix a memorandum describing the effects of the first-time adoption of IFRS on the Group's shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. and its opening and closing balance sheets for 2004 -- the so-called "transition year" -- as well as the interim and annual statements of operations, and the statement of cash flow for the same year, 2004. The memorandum also includes an estimate of the differences between US GAAP and IFRS on the statement of operations See Income statement. of Axalto for the first half of 2005. We also provide for the opening and closing balance sheets for 2004 and the interim and annual statements of operations detailed reconciliation statements showing the impact of the adoption of IFRS on the accounts and on the key accounting aggregates that were originally prepared in accordance with US GAAP. Axalto will publish on 8 September its financial statements for the first half of 2005 in accordance with IFRS. About Axalto Axalto (AXAL.PA - Euronext: NL0000400653 - AXL) is the world's leading provider (Gartner 2005, Frost & Sullivan 2004) of microprocessor cards - the key to digital networks - and a major supplier of point-of-sale terminals. Its 4,500 employees, from over 60 nationalities, serve customers in more than 100 countries, with worldwide sales reaching over 3 billion smart cards Example of widely used contactless smart cards are Hong Kong's Octopus card, Paris' Calypso/Navigo card and Lisbon' LisboaViva card, which predate the ISO/IEC 14443 standard. The following tables list smart cards used for public transportation and other electronic purse applications. to date. The company has 25 years' experience in smart card innovation and leads its industry in security technology and open systems. Axalto creates new generations of products for use in a variety of applications in the telecommunications, finance, retail, transport, entertainment, healthcare, personal identification, information technology and public sector markets. Microprocessor cards provide convenience, security and privacy to public and private services operators, their customers and end users. For more information, please visit www.axalto.com Unless stated otherwise, all comparisons in this document are shown on a current exchange rate basis. |
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