AMSTERDAM - Thursday, August 29th 2013 [ME NewsWire]
Record first semester with revenue at € 1.13 billion, up +13%
Platforms & Services revenue up +25% to €208 million
Profit from ongoing operations up +14%
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. All figures in this press release are unaudited.
(BUSINESS WIRE) Regulatory News:
Gemalto (Euronext NL0000400653 - GTO), the world leader in digital security today announces its results for the first semester 2013.
Key figures of the adjusted income statement
Ongoing operations1 (€ in millions)
First semester 2013
First semester 2012
at historical exchange rates
at constant exchange rates
Profit from operations
Olivier Piou, Chief Executive Officer, commented: "Gemalto recorded another strong semester of profitable growth, more than offsetting increased investments in operations made in the second part of last year. Over the period, our teams continued to deploy milestone programs and we are on track to meet our objectives for 2013. The announcement next week of our new development plan will provide company’s stakeholders with Gemalto’s blueprint to leverage the expanding opportunities we have in front of us.”
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 first semester of both 2013 and 2012 is presented for "ongoing operations” and under the 2013 format of segment reporting unless otherwise specified
Adjusted income statement and profit from operation (PFO) non-GAAP measure
The interim condensed 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 other 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 interim condensed 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.
For a better understanding of the current and future year-on-year evolution of the business, the Company provides an adjusted income statement for "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.
For the first semester 2013, reported figures for ongoing operations only differ from figures for all operations by the contribution from assets held for sale, considered non-strategic and currently being disposed.
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.
The interim condensed consolidated financial statements are prepared in accordance with International Financial Reporting Standards (IFRS). To better assess its past and future performance, the Company also prepares an adjusted income statement. Appendix 2 provides the reconciliation between IFRS and adjusted income statements.
Gemalto’s IFRS income statement for the first semester 2013 shows an operating profit (EBIT) of €104 million. This profit is up +38% on the first semester of 2012.
Restructuring and acquisition-related expenses amounted to €0.7 million (€2.4 million in the first semester of 2012). The equity-based compensation charge was €13 million (€25 million in the first semester of 2012) and amortization and depreciation of intangibles resulting from acquisitions amounted to €13 million (€10 million in the same period of 2012).
As a result, the IFRS net profit also showed a strong increase, up +38% over the first semester of 2012 to €81 million.
IFRS basic earnings per share and diluted earnings per share showed the same strong year-on-year increase. At €0.96 and €0.94 respectively for the reported period, IFRS basic earnings per share were higher by +36% and IFRS diluted earnings per share were higher by +39% when compared to the corresponding figures of the first semester of 2012.
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