Schlumberger IPO?
>> Schlumberger Readies Smart Card Unit For IPO
Stephanie Gordon
EE Times
17 April 2003
Technology services group, Schlumberger has announced plans to float its smart card division this year following growth of 13 percent in microprocessor shipments during 2002. The company, which overtook Gemplus in revenues last year to become the leading manufacturer of smart cards, has valued the unit at €797.3m ($869m).
The company cited the increasing number of corporate and public sector ID card projects as well as mobile communications and banking sectors as part of its confidence in the growth of the smart card market, anticipating double-digit growth for at least the next two years.
According to Schlumberger, the sector will never achieve the growth rates experienced in the past but the company predicted 7 percent growth in the market this year and over 10 percent for the next two years, with annual shipments exceeding 500 million in 2004.
Despite the market reaching a degree of maturity, standardisation along with intrinsic security was underlined as a key to ongoing growth, particularly with regards to wireless transactions and next generation mobile messaging.
“Smart card technology is becoming an intrinsic element of the IT and networking system,” said Jean-Claude Detruche, vice president of marketing at Schlumberger. “Standardisation continues to be a key challenge, and a recipe for future success of the industry.”
The company also said the market needs ongoing investment in research and development (R&D) including a greater understanding of the complex security requirements for each card market, and building the right partnerships and distribution channels to ensure continued growth.
On the downside, current price pressure is likely to impact overall spending in R&D and indications that the silicon oversupply is coming to an end will signal a rise in chip prices, according to the company. <<
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