Gemalto Sees Doubling of Operating Profit on Security Software

Gemalto Sees Doubling of Operating Profit on Security Software

Gemalto NV (GTO) forecast a doubling of its operating profit by 2017 amid greater demand for its chips and software that make bank cards and mobile phones more secure. Operating profit may reach 600 million euros ($788 million) that year, doubling from 2012, the Amsterdam-based company said in a statement yesterday. Revenue from the platforms and services unit will grow more than 20 percent annually to reach 1 billion euros by 2017, accounting for about half of Gemalto’s projected sales growth in the period, it said. Under Chief Executive Officer Olivier Piou, Gemalto has shifted away from commoditized chips to sell more lucrative packages including security software. Its clients include mobile-phone carriers and banks, as well as companies ranging from Volkswagen AG’s Audi division to Facebook Inc. Piou, who so far has bet on the need to improve the security of new technologies — the likes of mobile payments and machine-to-machine transmissions — predicts there are more opportunities for Gemalto in mobile money and mobile identification. Piou returned Gemalto to profit in 2008, and last year net income rose 25 percent to 201 million euros. Joining France’s leading stock index, the CAC 40, in December, marked another milestone for the executive. A 55-year-old engineer, Piou has headed the company since the 2006 merger of Gemplus International SA and Axalto Holding NV. Shares of Gemalto have gained 27 percent this year. The stock slipped 0.7 percent to 86.26 euros yesterday in Amsterdam trading.

To contact the reporter on this story: Marie Mawad in Paris at mmawad1@bloomberg.net

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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