SCHLUMBERGER-SEMA 1Q/03

SchlumbergerSema reported first quarter revenue of $793 million, a 2% decline over the previous quarter, but up 12% year-on-year. Pretax operating income was $15 million, a decrease of 55% sequentially, and an increase of $14 million year-on-year. Schlumberger said that revenue for volume products of $202 million decreased 22% sequentially, but improved 1% year-on-year. The year-on-year improvement was mainly due to a 7% growth in mobilecom cards principally in North America and Europe, offset by a decline in parking terminals due to the exceptional Euro currency retrofit program that extended into early 2002. The sequential decrease reflected the seasonal drop in mobilecom activity, following telecommunications operators’ traditional Christmas campaigns coupled with reduced activity in prepaid phone cards.

SchlumbergerSema 1Q/03

SchlumbergerSema reported first quarter revenue of $793 million, a 2% decline over the previous quarter, but up 12% year-on-year. Pretax operating income was $15 million, a decrease of 55% sequentially, and an increase of $14 million year-on-year. Schlumberger said that revenue for volume products of $202 million decreased 22% sequentially, but improved 1% year-on-year. The year-on-year improvement was mainly due to a 7% growth in mobilecom cards principally in North America and Europe, offset by a decline in parking terminals due to the exceptional Euro currency retrofit program that extended into early 2002. The sequential decrease reflected the seasonal drop in mobilecom activity, following telecommunications operators’ traditional Christmas campaigns coupled with reduced activity in prepaid phone cards. For complete details on Schlumberger’s first quarter results visit CardData ([www.carddata.com][1]).

[1]: http://www.carddata.com

Cyberflex Access Award

SchlumbergerSema has received the “Product of the Year Award” from BiometriTech for its “Cyberflex Access” smart cards.  The system authenticates the user by matching the fingerprint to one digitally stored on the SchlumbergerSema smart card. Since this sensitive data is computed directly on the card without the need to rely on the availability or speed of a network for validation, the risk of the information being compromised is substantially eliminated.

WLAN SPECS

The WLAN Smart Card Consortium was launched this week to define
specifications for world-wide access to wireless LAN networks with smart
card security. A total of 19 companies and institutions have joined the
consortium as Founding Members, including major infrastructure providers,
card and chip manufacturers, start-ups, and academic institutions. The
participating firms include VISA, Gemplus, Oberthur, SchlumbergerSema, and
Infineon Technologies. The first challenge of the WLAN smart card
consortium is in specifying the use of the card in order to facilitate
smart card adoption. Liaison contacts have been established for 3GPP, IEEE,
the Wi-Fi Alliance, and smart card organizations such as the Java Card Forum.

SOSPITA E-GATE

Mandal-based Sospita has signed an agreement with SchlumbergerSema to
jointly provide the software industry with a high security smart card
license protection solution.The combined solution will employ the Sospita
security hardware license protection solution along with the new
“SchlumbergerSema e-gate” token to decrypt parts of the digital content in
real-time, allowing a level of security far above anything that exists
today. The secret keys protecting the content will be held within the
tamper-proof e-gate device and not on the hard disk, making the task of
hacking the software extremely difficult. Industry analysts say that 37% of
software is pirated on average worldwide each year. In China the piracy
rate is over 90%. The software protection market in China is currently
doubling annually and growth rates are high in Asia and other emerging
countries where piracy is a serious problem.

Canadian Tire Petroleum Deploys Now Prepay Phone Card Terminals

SchlumbergerSema has been selected by ZETES to provide the operating
system and secure modules for the upcoming “Belgian Personal Identity
Card.” The BelPIC is the first large-scale deployment of electronic
identity cards in Europe. Approximately 11 million cards will be produced
and distributed to Belgian citizens over the next five years, with an
initial phase covering 11 municipalities spread throughout the country, due
to begin in the 2nd quarter of 2003.

BONUSCARD

Europe’s largest smart payment card co-branding project has contracted
SchlumbergerSema to supply smart cards as well as the associated
personalization and deployment services. To-date, SchlumbergerSema has
delivered nearly two million cards for GarantiBank’s “BonusCard,” which is
a combined debit/credit and loyalty program. The “BonusCard” scheme was
initiated in early 2000, and today 100 retail partners have joined in the
project. GarantiBank’s customers earn loyalty points when they use their
credit/debit cards in participating retail outlets, which include white
goods stores and sports shops, as well as petrol stations and
supermarkets. These points are stored securely on the cards, for the
consumers to spend at any of those outlets, whenever they choose.

SchlumbergerSema & Citi Smart Cards

SchlumbergerSema announced it has completed deployment of its smart card solution to Citibank for the bank’s “Citi.You Card” and “Citi Smart Card”. The SchlumbergerSema Cyberflex Palmera card used in Citi Cards smart card products are loaded with loyalty applications for smart card transactions, as well as with software applets for enabling smart card-based authentication.

.NET Card

SchlumbergerSema has introduced the “.NET Card,” which utilizes smart card security to the delivery of Wi-Fi, digital rights management solutions, next-generation mobile messaging and home entertainment applications. The new technology enables easy integration with all types of multimedia applications, and complements the company’s existing portfolio of smart card platforms that will serve as the core technology for multimedia network services through various connected devices such as MP3 systems, game boxes, PDA’s, PC’s, cable and satellite TV systems, and, potentially, next generation phones. The advanced infrastructure behind the “.NET Card” technology incorporates a service layer designed to enable a range of applications to be automatically downloaded and installed onto the smart card.

.NET CARD

SchlumbergerSema has introduced the “.NET Card,” which utilizes smart card
security to the delivery of Wi-Fi, digital rights management solutions,
next-generation mobile messaging and home entertainment applications. The
new technology enables easy integration with all types of multimedia
applications, and complements the company’s existing portfolio of smart
card platforms that will serve as the core technology for multimedia
network services through various connected devices such as MP3 systems,
game boxes, PDA’s, PC’s, cable and satellite TV systems, and, potentially,
next generation phones. The advanced infrastructure behind the “.NET Card”
technology incorporates a service layer designed to enable a range of
applications to be automatically downloaded and installed onto the smart
card. The platform also has multi-language functionality for maximum
flexibility and ease-of-use within the developer community. The platform
will allow cross functionality between applications and services developed
in any language supported by the “.NET” framework, including Visual Basic,
.NET, C# and J#. SchlumbergerSema has licensed an ECMA-335 standard named
Common Language Infrastructure from Hive-Minded as a component for its
“.NET Card” platform.

DECT TERMINAL

SchlumbergerSema launched a new portable POS terminal that communicates
via the “Digitally Enhanced Cordless Telecommunications” network. “DECT” is
the digital wireless standard in Europe, the Middle East and Africa. The
“MagIC X1000 DECT” terminal enables both off and on-line card payments to
be transacted more than 100 meters away from its docking station. The new
terminal is EMV approved and compliant with the latest PIN entry security
standards. It also has TCP/IP capabilities for secure payment. The “DECT”
technology used for the “MagIC X1000 DECT” terminal has been developed for
data transmission only.

DECT Terminal

SchlumbergerSema launched a new portable POS terminal that communicates via the “Digitally Enhanced Cordless Telecommunications” network. “DECT” is the digital wireless standard in Europe, the Middle East and Africa. The “MagIC X1000 DECT” terminal enables both off and on-line card payments to be transacted more than 100 meters away from its docking station. The new terminal is EMV approved and compliant with the latest PIN entry security standards. It also has TCP/IP capabilities for secure payment.