Decreasing Sales Despite Sustained Volumes of Microprocessor Cards
Sales for the third quarter 2002 amounted to 103.3 million euros showing a
9.4% decrease compared with the previous quarter and a 7.0% decline on a
year-on-year basis. For the first nine months of the year, revenue declined
by 5.4%1 compared with the previous year.
Evolution of sales during the third quarter was characterized by:
* Sustained volumes in microprocessor cards: +28.9% on a year-on-year basis
and -1.3% compared with the previous quarter
* A new decline in average selling prices: -23% on a year-on-year basis and
-7.1% on a sequential basis
* A decrease in sales of Other Cards and Services & Solutions which was
expected following the restructuring plan decided upon at the beginning of
the year
* An unfavorable parity impact as a result of a decreasing dollar versus
the euro during the third quarter and accounting for 2.4 million euros or
2.3% of Q3 sales
1-4.5% before parity impact
SIM cards
With 10.4 million cards delivered during the third quarter, volumes of SIM
cards show a 12.1% increase on a year-on-year basis and a limited 3.3%
decline compared with the previous quarter of this year.
On a year-to-date basis, sales of SIM cards amount to 85.9 million euros,
showing an 18.7% decrease compared to the previous year, while average
selling prices are down 22.5% over the same period.
Banking microprocessor cards
The recovery of the third quarter in banking microprocessor cards, +13.6%
over the previous quarter, confirms that the slowdown observed in the
second quarter of this year was in fact only temporary. France and the
United Kingdom remain the “engines” of growth:
* The roll out of EMV2 microprocessor cards has reached a new phase in the
United Kingdom with the introduction of the [email protected] technology that
enables retailers to use microprocessor cards with a PIN code at their
point of sale terminals. With 58% sequential growth and the recent
announcement of a three-year contract with Barclaycard, Oberthur Card
Systems’ position is strengthened in this market.
* France pursues the renewal of its payment cards with multi-application
cards loaded with the Moneo e-purse applet.
2EMV: Europay, Mastercard, Visa
3Personal Identification Number at Point Of Sale
Other Cards
The decline of 4.3 million euros in sales compared with Q3 2001 is mainly
due to the divestment from the memory card business in the United States
(which represented 3.2 million euros in 2001). Furthermore, sales of
magnetic stripe cards have stabilized.
Services and Solutions
Services & Solutions activity, mainly banking personalization services, is
stable over the first nine months of the year before parity impact. This is
due to an increase in banking personalization activities in Europe being
offset by a decline in other services from which the company divested in
the United States.
Outlook 2002
Trends observed during the third quarter 2002 on sales, average selling
prices and number of orders show that the seasonality of the fourth quarter
revenue is unlikely to be as strong as has been experienced in previous
years. In this context, the level of sales on a full year basis should be
in the range of 435 to 450 million euros.
About Oberthur Card Systems
Oberthur Card Systems, listed on the Euronext Stock Exchange (Euroclear
code 12413) since July 2000 is one of the world’s leading providers of
card-based solutions, software and applications including SIM and
multi-application smart cards and services ranging from consulting to
personalization.
Innovative products and high quality services ensure Oberthur’s strong
positioning in its three main target markets.
* Payment: 52% of 2001 revenues. The company is the world leader and number
one supplier for Visa and MasterCard.
* Mobile Communications: 31% of 2001 revenues, with open and interoperable
solutions based on Java^(TM) technology.
* Authentication and Network Security: emerging markets in which the
company plays a pioneering role, with strong expertise in security and a
dominant position in e-commerce and Pay-TV.
Close to its customers, Oberthur Card Systems benefits from an industrial
and commercial presence across all five continents. Oberthur Card Systems
is a subsidiary of the Franc,ois-Charles Oberthur Group.
For more information, visit www.oberthurusa.com and www.oberthurcs.com.
Exhibit
Breakdown of sales by card type and geographical region in million euros
