Gemplus International SA
FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of January 2006
GEMPLUS INTERNATIONAL S.A.
(Exact name of registrant as specified in its charter)
GEMPLUS INTERNATIONAL S.A.
(Translation of registrant’s name in English)
46A, Avenue J.F. Kennedy
L-1855 Luxembourg
Grand Duchy of Luxembourg
(Address of Principal Executive Offices)
(Indicate by check mark whether the registrant files or will file
annual reports under cover of Form 20-F or Form 40-F.)
Form 20-F X Form 40-F
(Indicate by check mark whether the registrant by
furnishing the information contained in this form
is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.)
Yes No X
Gemplus International SA
GEMPLUS INTERNATIONAL SA
Gemplus Announces Expected Results for Fiscal Year 2005
Luxembourg, January 19, 2006 — Gemplus International S.A. (Euronext: LU0121706294 — GEM and
NASDAQ: GEMP), the world’s leading provider of smart card solutions, announces today a revision of
its earnings expectations.
Revenue for the fourth quarter 2005 is now expected to be around 262 million euros. Therefore, for
the fiscal year 2005, the Company anticipates revenue of around 939 million euros, versus revenue
of 865 million euros in 2004. This compares with the guidance of about 950 million euros provided
in early December 2005. This revision can be attributed mainly to a quality issue with a specific
chip.
Operating margin for the fiscal year 2005 is now expected to be around 7% versus 3% in 2004. This
compares with the guidance previously provided of approximately 8%. This revision is also due
mainly to this quality issue.
This one-time event does not change the Company’s mid-term target of 10% operating margin in 2007.
The Company expects in 2006 continuous improvement of its performance in line with the midterm
objective. Corrective measures related to the quality issue have been immediately taken together
with the concerned supplier and our customers.
Gemplus plans to announce its fourth quarter and fiscal year 2005 results on February 9, 2006
before the markets open.
Forward-Looking Information
The estimated results in this announcement constitute “forward-looking” information within the
meaning of the United States securities laws. Actual results for the Company’s fourth quarter of
2005 could materially differ from those estimated or forecast depending on a number of factors,
such as whether all orders included in estimated revenues meet the company’s revenue recognition
requirements, the adequacy of estimated expense accruals and reserves, and quarter end adjustments
arising from the customary review by management and the company’s independent auditors.
The matters discussed in this press release also involve risks and uncertainties described from
time to time in Gemplus’s filings with the United States Securities and Exchange Commission (SEC).
In particular, see “Risk Factors”, “Special Note Regarding Forward-Looking Statements” and
“Quantitative and Qualitative Disclosures About Market Risks” in the most recent Annual Report on
Form 20-F for the year ended December 31, 2004 and the most recent Reports on Form 6-K relating to
quarterly periods, which are on file with the SEC. These documents contain and identify important
factors that could cause the actual results to differ materially from those contained herein.
About Gemplus
Gemplus International S.A. (Euronext: LU0121706294 — GEM and NASDAQ: GEMP) is the world’s leading
player in the smart card industry in both revenue and total shipments (source: Gartner-Dataquest
2005, Frost & Sullivan, Datamonitor). It has sold over 5.5 billion smart cards.
Gemplus delivers a wide range of portable, personalized solutions in areas including Identity,
Mobile Telecommunications, Public Telephony, Banking, Retail, Transport, Healthcare, WLAN, Pay-TV,
e-government, and access control.
Gemplus’ revenue in 2004 was 865 million Euros.
www.gemplus.com
Gemplus International SA
For more information:
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Press
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Investor Relations |
Gemplus
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Gemplus |
Remi Calvet
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Céline Berthier |
Mob. : +33 (0) 6 22 72 81 58
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Tél. : +41 (0) 22 544 5054 |
Email : remi.calvet@gemplus.com
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Email : celine.berthier@gemplus.com |
Edelman
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Fineo |
Frédéric Boullard
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Tél. : +33 (0) 1 56 69 73 95
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Tél : +33 (0) 1 56 33 32 31 |
Email : frederic.boullard@edelman.com
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Email : investors@gemplus.com |
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©2006 Gemplus. All rights reserved. Gemplus, the Gemplus logo, are trademarks and service marks
of Gemplus S.A. and are registered in certain countries. All other trademarks and service marks,
whether registered or not in specific countries, are the property of their respective owners.
Some of the statements contained in this release constitute forward-looking statements. These
statements relate to future events or our future financial performance and involve known and
unknown risks, uncertainties, and other factors that may cause our or our industry’s actual
results, levels of activity, performance or achievements to be materially different from any future
results, levels of activities, performance, or achievements expressed or implied by such
forward-looking statements. Actual events or results may differ materially. Although we believe
that the expectations reflected in the forward-looking statements are reasonable, we cannot
guarantee future results, levels of activity, performance or achievements. Factors that could cause
actual results to differ materially from those estimated by the forward-looking statements
contained in this release include, but are not limited to: trends in wireless communication and
mobile commerce markets; our ability to develop new technology, and the effects of competing
technologies developed and expected intense competition generally in our main markets;
profitability of our expansion strategy; challenges to or loss of our intellectual property rights;
our ability to establish and maintain strategic relationships in our major businesses; our ability
to develop and take advantage of new software and services; and the effect of future acquisitions
and investments on our share price. Moreover, neither we nor any other person assumes
responsibility for the accuracy and completeness of such forward-looking statements. The
forward-looking statements contained in this release speak only as of this release. We are under no
duty to update any of the forward-looking statements after this date to conform such statements to
actual results or to reflect the occurrence of anticipated results.