As it is boosted by active sales of credit cards that are chip enabled, Franco-Dutch technology firm Gemalto NV (GTO.AS) stated that there is a 6 percent increase in third-quarter sales, on a constant currency basis.
It was reaffirmed by the company, which manufactures readers as well as the chips used in payment cards and mobile phones that it will continue with its annual goal of an accelerated year-on-year growth for the second half of the year at constant exchange rates as well as a double digit expansion in operational profit.
The group reiterated its profit predictions it made in August for the incoming years as well as the announcement of the acquisition of SafeNet, a U.S. based data protection specialist for $890 million.
The deal was reaffirmed by Gemalto, that it will allow it to increase its 2017 operational profit target of 600 million euros by 10 percent in the face of toughened competition from Apple Inc’s (AAPL.O) production and installation of its own SIM cards in its tablets as well as in-device payments.
For the moment, as the plans of Apple to roll out its in-device SIM card system was announced only in the United States, a significant part of Gemalto revenue will remain unchallenged. A European launch, however, may prove to be a problem for the company.