Interim Results for the six months ended 30 September 2001
ID Data plc, the world’s sixth largest supplier of secure transaction systems and smart cards to the international telephony, banking, retail and secure access sectors, today reports its interim results for the six months ended 30 September 2001.
· Turnover £7.2 million, down £1.5 million due to a reduction of £3.1 million in fixed line telephony purchases by Marconi
· Pre tax loss of £2.8 million (2001: loss of £1.6 million)
· Sales of smart bank cards in the period more than doubled from 1M to 2M cards
· Major projects for Vodafone and Tesco commenced
· First significant GSM orders received for £2.2M
· ChipPort, a new subsidiary to license ID Data’s smart card expertise and products to other card manufacturers world-wide, established
· Global licence acquired for ‘OriginJ’, a full Java operating system for smart cards
· Agreement to market and manufacture ‘Pathfinder’, a unique system enabling mobile phone operators to control international call roaming
Commenting on the Results, Peter Cox, Chief Executive of ID Data plc, said:
“The slower than expected start to the year reflects a fall in orders placed by Marconi but we have taken steps to replace the business lost. Meanwhile, the transition of the Company from a provider of magnetic cards to smart card technology, which represents the future of card based services, is proceeding.”
“In this area, the recent launch of ChipPort, which offers ID Data’s technology and intellectual property to card manufacturers worldwide, is expected to add significant revenues and create new opportunities for the business.”
For further information, please contact:
ID Data plc
Tel: +44 (0) 1536 207 000
Peter Cox, CEO
Bankside Consultants Limited
Julian Bosdet / Russell Elliott
Tel: +44 (0) 20 7444 4140
Chairman’s StatementChairman’s statement
The six months to the end of September have been a period of progress for ID Data, albeit affected by unanticipated factors which are being addressed.
The decline in turnover to £7.2 million, from the £8.7 million achieved in the corresponding period last year, reflects a £3.1 million loss of fixed-line telephony purchases by Marconi, partly offset by a £1.6 million increase in sales in new business areas. The period was further affected by the delay in the delivery of a shipment of GSM cards until after 30 September, postponing £2.2 million in sales, which will now be reported in the second half. Accordingly a pre tax loss of £2.8 million is reported, against a loss of £1.6 million in the corresponding period last year.
Significant advances have been made in achieving the Company’s aim of increasing the sale of smart card technology, which we believe represents the future. The sale of smart bank cards to Barclays increased from a total of 1.1 million in the first half of last year to 2.5 million for the corresponding period this year. Banks worldwide have agreed to adopt smart card technology by January 2005. The recently announced decision to introduce PIN at point of sale in the UK will accelerate the use of this technology.
Despite the GSM market being particularly slow in the first six months of the financial year, the launch of the ID Data GSM SIM applications on a range of silicon has created significant interest in the Company’s product portfolio. An order to supply GSM products to the Far Eastern market, in conjunction with Prism Holdings Limited of South Africa, is evidence of this interest. Moreover, the agreement to market and manufacture GSM SIM cards for Pathfinder Telecom Group, will provide a unique system to enable mobile phone operators to control international call roaming.
Our transition from a card manufacturer to an intellectual property based service provider is progressing. The Company is focused on licensing its software and exploiting the rights to its intellectual property. The global licensing agreement with OneEighty Software for the sale of a full Java operating system on smart cards creates a new and potentially significant revenue stream. Furthermore the recent launch of the ChipPort operation should accelerate the rate at which the Company is able to exploit its smart card technology on a global basis.
The need for additional security, for both individuals and organisations, has raised awareness of smart card technology and the Company remains well positioned to service these requirements as they arise. To this end, we are currently in discussion with the governments of the UK and other countries on the possibilities of establishing personal identification schemes for security purposes.
At 30 September 2001, the Company had a cash balance of £2.5 million with further undrawn borrowing facilities of £1.7 million. The Board is currently reviewing a range of options to provide additional resources should this become necessary to support the business and its expansion.
The outlook for the markets in which the Company operates remains positive and recent developments in the GSM and multi application smart card markets should assist the Company to move towards profitability. We are confident at this stage that revenues for the second half will be significantly in excess of the first half.
20 December 2001
A full results table is available to download as a .pdf file. Go to http://www.id-data.co.uk/investor/press.htm .
Copies of the interim report will be sent to all shareholders and are available to the public from the Company’s registered office at Wansell Road, Weldon North, Corby, Northamptonshire, NN17 5LX from Wednesday 2 January 2002.
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