Patent licensing revenues fell by €4 million from 2006 to €23 million.

However, government programs revenue was up 23% reflecting the ramp up of deliveries in e-passport, e-identity and e-health projects won during previous years around the world.

Identity & Access Management, which addresses on-line security for corporations, posted 3% lower revenue.

Public Telephony

The public telephony’s contribution to group revenue has now shrunk to less than 3% as demand continues to decline mainly as a result of the increased use of mobile phone telephony.

Resultantly, the unit recorded an operating income of €7.3 million in 2007.

Point-Sale-Terminals

Gemalto’s increased thrust to allocate resources in the development of derivative products, customizations and high end applications for the new platforms resulted in an operating loss for the segment to €5.9 million.

Outlook

Gemalto believes that the company is well poised to benefit from the robust demand in the main segments and it is unlikely to be affected by the present market turmoil.

The company also notes that profitability will be driven by growth in the Mobile Communications and the recovery of Secure Transactions.