WASHINGTON: Dutch digital security provider Gemalto (GTOFF.PK,GTOMY.PK) announced Wednesday that it expects first-quarter revenue to be lower by 7% to 9% at constant exchange rates compared to the same period of 2016. This is mainly due to lower than expected Payment business revenue in the United States.
The company expects Payment business revenue for the full year 2017 to be around 100 million euros lower than its initial expectation. This update primarily reflects a double digit decline in the assumption for the payment cards total available market in the United States due to EMV card inventory levels at our customers in the first semester. This situation also leads to a lower contribution from personalization services. Looking ahead, taking into account the first quarter trend, Gemalto now expects its 2017 profit from operations outlook to be at a similar level to 2016. Gemalto is currently reviewing its action plan to minimize the impact. The company will provide further details when it publishes its first quarter revenue on April 28.
