Gemalto reports that annual revenues slipped 1.5% last year to $2.26 billion due to extreme price pressure in the SIM mobile card and EMV smart card segments. Profits collapsed to $2.1 million, compared to $180.8 million for 2005, due to merger-related expenses and other extraordinary items. The average SIM card selling price was down 31% at constant exchange rates. However, the year-on-year price decrease improved throughout the year from 34% in the first half year to 32% in the third quarter and 25% in the fourth quarter. Deliveries of microprocessor cards were up 20%, driven by on-going EMV deployment, primarily in North Asia, Latin America, Turkey and Russia. Average selling prices decreased, reflecting more intense competition in certain high growth markets migrating to EMV. Deliveries of microprocessor products (mainly contactless, high-end cards and e-passports) were up 81%, fueled by the initial deployments of large scale identity programs, mainly in Europe. For 2007, Gemalto says cost synergies from the Gemplus-Axalto merger are materializing progressively in line with the Company’s expectations, but they will not be sufficient to offset the adverse effect on the operating margin of the strong price decline of the last twelve months. For complete details on Gemalto’s latest performance visit CardData ([www.carddata.com]).