re: GEMP prelim Q1 2001 Results
>> Gemplus Announces Preliminary First Quarter Results
LUXEMBOURG
BUSINESS WIRE
Press Release
April 4, 2001
Gemplus International S.A. (Euronext: Sicovam 5768 and NASDAQ:GEMP) today warned that first quarter results are expected to fall short of the company's previous guidance. Based upon preliminary analysis of its results for the quarter ending March 31, 2001, the company anticipates revenue for the first quarter to be approximately 290 million(EURO). This represents 25% growth from first quarter levels in 2000, instead of the 31-32% growth projected earlier. The company now expects operating profit to be slightly below breakeven for the first quarter of 2001.
``Despite continued strong performance in Asia,'' said Antonio Perez, president and chief executive officer, ``we are seeing softer SIM card demand in other regions of the world, particularly Europe and North America. The economic slowdown in the wireless industry is clearly affecting demand as our customers assess their businesses. However, 25% revenue growth in the current environment, while short of our guidance, is solid. This performance follows our strongest year ever.''
The company indicated that as a result of the volume shortfall it expects an unfavorable shift in product mix and unfavorable manufacturing variances in its European based factories. Historically, operating profit in the first quarter has been the weakest of the year.
``The management team is currently finalizing work on a series of proposed initiatives intended to reduce manufacturing variances, which we plan to announce very shortly,'' added Mr. Perez.
As to the second quarter and full year guidance in the context of these developments, the company announced that no adjustments would be made to its original guidance until it has completed its analysis of the first quarter's results. The company will communicate its revised guidance during its full first quarter results conference call on May 2, 2001.
A conference call will be held on Thursday, April 5, 2001, starting at 2:00 p.m. (CET). The call in numbers are:
Europe: +44 (0) 20 8240 8243
North America: +1 800 553 2165
A replay of the conference call will be available two hours after
the call until April 12, 2001. The call in numbers are:
Europe: +1 303 804-1855
North America: +1 800 625 5288
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About Gemplus
GEMPLUS: the world's leading smart card solutions provider
Since its creation in 1988, Gemplus International S.A. (Euronext: Sicovam 5768 and NASDAQ:GEMP) has driven the global marketing and deployment of smart card-based applications for telecommunications, financial services and e-business security.
Gemplus is instrumental throughout the value chain - chip design, card management systems, software development, and consulting - delivering integrated custom-made solutions for the security, personalization and privacy management needs of clients and partners worldwide.
Gemplus technology has played a defining role in the development of wireless telephony since the introduction of SIM cards into the GSM standard in 1990. For more than a decade, Gemplus has pioneered applications that enable network operators around the world to answer the changing needs of their customers. Gemplus was first to market with a 3G card and supplies a product range compliant with new and emerging transmission standards - 2.5G, 3G.
In 2000, revenue was 1.205 BE, up 57% from the previous year's 767ME. Net income was 99 ME. Gemplus employs more than 7800 people in 37 countries worldwide. Since 11 December 2000, Gemplus shares have been trading on Euronext Paris S.A. First Market and on Nasdaq in the form of ADSs. <<
- Eric - |
