LUXEMBOURG-Gemplus International reported gross profits of $54 million, up 27 percent from the prior quarter. The maker of smart cards for mobile phones said it had a net loss of $93 million for the quarter.
“As Gemplus continues this year of transition, the business is responding well to the restructuring initiatives we have put in place,” said Alex Mandl, the company’s chief executive officer. “Our new regional focus has already helped us serve some of our customers better, with notable progress in China and the U.S. We have seen steady migration toward higher value cards, further improving our product mix. In addition, the average selling price of wireless cards has increased, helped by regional and product mix. The turnaround at Gemplus is progressing and we are satisfied that our efforts are on track to deliver our plan.”
The company’s stock was down slightly after the news to about $2.76 per share.
