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Point-of-sale terminal maker Ingenico S.A. says its 2008 revenue was 728 million euros (US$948.1 million), up 28.2% from 568 million euros in 2007 at constant exchange rates. Ingenico says it sold 4 million POS terminals in 2008, up 53.8% from the 2.6 million devices sold in 2007, a figure that does not include 700,000 terminals sold by Sagem Monetel, a competitor it bought in 2008. The France-based company's operating margin, which represents what is left after paying variable costs, such as wages, but before paying indirect bills, such as taxes, will be between 12% and 13% for 2008, says Philippe Lazare, Ingenico CEO, in a statement. Ingenico did not provide its net income results. Fourth-quarter 2008 revenue was 224 million euros, up 35.8% from the 2007 fourth-quarter revenue of 165 million euros. For all of 2008, Ingenico saw revenue growth in all regions except for North America, where revenue was 105 million euros in 2008, down 2.8% from 108 million euros in 2007. Southern Europe, Ingenico's largest region by revenue, generated revenue of 168 million euros in 2008, up 20.9% from 139 million euros in 2007. Eastern Europe, the Middle East and Africa nearly doubled in revenue in 2008, Ingenico says, generating 134 million euros in revenue, up 97.1% from 68 million euros in 2007. South America also saw double-digit revenue growth, with 130 million euros in 2008, up 22.6% from 106 million euros in 2007. Northern Europe revenue was 125 million euros in 2008, a 21.4% increase from 2007 revenue of 103 million euros. China and the Asia-Pacific region revenue reached 66 million euros in 2008, a 50% increase from 44 million euros in 2007. Ingenico's results "looked pretty solid," says Robert Dodd, managing director at Morgan Keegan & Co. Inc., a United States-based investment firm. He was not surprised at the weakness in North America. "There is no question the market is relatively soft right now," Dodd tells CardLine Global. The decrease in North America revenue is more a reflection of a particularly strong 2007 fourth quarter rather than a recessionary U.S. economy, Ingenico says. While Ingenico did not provide a 2009 revenue forecast, it appears that Ingenico is not expecting a price war among POS-terminal makers, Dodd says. Indications are that "the competitors are behaving rationally" on pricing, Dodd says. Overall, terminal makers will face weakened demand in 2009, but Dodd says it is not likely the market will collapse, taking with it terminal-makers' ability to generate revenue. While economic conditions are uncertain, Lazare anticipates an "organic" increase in 2009 revenue, meaning sales will grow from the company's existing products and services. Ingenico's exposure to reduced consumer spending is limited, Lazare says, and has not, to date, delayed purchasing decisions by Ingenico's customers.
