Gemalto revenues boosted by improving M2M demand

M2M and digital security specialist Gemalto has flagged a double-digit revenue increase for the three months ending September, citing improving demand for its range of M2M products and services in both the Americas and Europe.

The company announced a 10% increase in sales, to €596 million ($820 million), compared with the third quarter of 2012, with revenues up across all of its main divisions.

M2M and digital security specialist Gemalto has flagged a double-digit revenue increase for the three months ending September, citing improving demand for its range of M2M products and services in both the Americas and Europe.

The company announced a 10% increase in sales, to €596 million ($820 million), compared with the third quarter of 2012, with revenues up across all of its main divisions.

Gemalto (Amsterdam, Netherlands) did not provide an update on profitability for the quarter but said it was expecting double-digit growth in both operating profit and revenues for the full financial year.

“Gemalto’s diversified businesses and geographic footprint led to another quarter of strong revenue growth,” said Olivier Piou, Gemalto’s chief executive. “A key component of our new multi-year plan is the development of our platforms and services activity, and its performance, expanding nearly +30% since the beginning of the year, evidences the trust our customers place in us.”

The company’s M2M business achieved a 9% increase in revenues, to €49 million, over the period, thanks largely to an increase in demand for its products in the Americas and Europe.

Commenting specifically on the performance of the M2M division, Gemalto flagged demand for Cinterion-branded modules and data management services among industrial sectors integrating mobile connectivity into products and services.

The company has also been boosted by a number of recent M2M developments, including a tie-up with Oracle (Redwood City, CA, USA) and smart-grid specialist V2COM to develop smart-energy services for the Latin American market.

It also recently teamed up with telematics provider Kore (Alpharetta, GA, USA) to offer M2M application enablement services over cloud technology.

Nevertheless, the bulk of the company’s revenues still come from its range of mobile communications products, which generated sales worth €287 million, up 9% on the figure reported for the third quarter of 2012.

Meanwhile, secure transactions represents the fastest-growing business, with revenues growing by 18%, to €162 million, over the same period.