Led by its security and secure payments businesses, Gemalto NV reported a 25% increase in third-quarter revenue.
The French maker of smartcards and biometric passports on Thursday posted a 58% increase in sales of security equipment, to $116 million, while secure-transaction sales rose 12%, to $166 million.
The transaction business "continues to benefit from strong underlying growth driven by migration to EMV payment cards," the chip-and-PIN credit and debit cards, Berenberg Bank analyst Ali Farid Khwaja wrote in a note to clients. Growth in the security segment was boosted by strong public-sector demand, he added.
VeriFone Systems Inc. and Gemalto said last week that they will form a partnership to encourage the rollout of EMV cards in the U.S., where they remain rare compared with Europe.
The alliance may also lead to a sale of Gemalto's point of sale business to VeriFone, the companies said.
Gemalto bought Germany's Cinterion Wireless Modules GmbH in July for $163 million, adding to its machine-to-machine communications technology for products such as utility meters, and it acquired the online-banking security provider Todos AB in April.
