Amsterdam, July 21, 2017 at 8:30pm - Based on its preliminary first semester results, Gemalto (Euronext NL0000400653 - GTO) revenue for second quarter is €742 million, lower by 9% at constant exchange rates compared to the same period of 2016. For the first semester, the Company profit from operations is in line with expectations at approximately €93 million.

Looking ahead, the second quarter double digit decline for Payment in Americas and SIM business is anticipated to continue for the rest of the year. This decline will be offset by the expected revenue acceleration in Enterprise, Machine-to-Machine and Government Programs including 3M Identity Management Business, leading to a stable revenue year-on-year for the second semester.

Taking into account these revenue trends, the operating leverage of Payment and SIM businesses will not be realized as expected. The effect of the the transition plan announced in April is anticipated to start contributing materially towards the end of the year. Gemalto estimates its 2017 second semester profit from operations to be between €200 million and €230 million.

As a result of the deteriorated prospects for the removable SIM market, the Company is expected to book a non-cash goodwill impairment charge of approximately €420 million in the first semester of 2017.

The Company will provide further details when it publishes its first semester results on September 1, 2017.

* All figures in this press release are unaudited.