Gemalto has announced its revenue for the third quarter of 2016, recording a total of 753 million euros, lower by 1% year-on-year at constant exchange rates."Gemalto's revenue was stable over the first nine months of 2016," said Philippe VallÉe, chief executive officer, Gemalto. "In the third quarter, Enterprise and Government Programs posted moderate revenue increases, while Machine-to-Machine's growth accelerated. Payment and SIM sales were in line with the company's expectations for the quarter."Gemalto expects to increase its gross margin by 1.5 percentage point through an acceleration of revenue growth towards the end of the year. From the current planning processes, Gemalto's 2017 profit from operations is expected to be between 500 million euros and 520 million euros, which corresponds to an annual expansion of around +10% since 2013. This outlook reflects a very adverse mobile environment and slower-than-anticipated migration of payment cards in 2017. It also takes into account plans for increased investments to capture growth beyond 2017 in Mobile Platforms & Services, Enterprise and Government Programs. Gemalto's Platforms & Services revenue objective of 1 billion euros in 2017 remains unchanged."Payment & Identity, representing 62% of total company revenue, posted sales of 467 million euros, up 1% year-on-year. The company's Government Programs business recorded revenue of 109 million euros, up 9% year-on-year, generated by deliveries of previously won projects. During the third quarter, Gemalto also finalised the transformation of a production site to support the increase in project deliveries anticipated.During the reporting quarter, the company announced that the Maryland Department of Transportation's Motor Vehicle Administration (MVA) has begun rolling out its new secure and redesigned driver's license and identification (ID) card across the state. It also confirmed that Posten Norge had selected Gemalto ID Verification to strengthen the country's fraud prevention efforts. This major contract will see it supply Norway's national post and logistics service with its Coesys ID Verification solution, which enables customer credentials such as ID cards and passports to be checked by branch staff.
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