XIRING Meets 2008 Financial Target

XIRING, a security solutions provider for remote transactions, reported US$37 million in turnover for the 2008 financial year or 20 percent organic growth. For its part, operating income increased by more than 60 percent, to $5 million, and corresponds to a margin of 12.4 percent on turnover.

Georges Liberman, Chairman and CEO said, “I am particularly proud of XIRING's performance in 2008 as, yet again, we have fulfilled our commitments in terms of turnover and have even exceeded our profitability target. While the uncertain economic outlook leads us to be somewhat prudent in terms of our 2009 targets, it does not pose any threat to the pressing need to secure remote transactions or the prospects for development. XIRING benefits from technological, commercial and financial advantages to meet European market demand for online banking and e-commerce security, as well as demand from the healthcare markets.”

XIRING hit its stated annual turnover growth target of 20 percent over the prior year, and achieved sales of $37 million. Turnover from its banking business was up by 24.2 percent compared with 2007 and reached $20.4 million. Its health care business achieved a 17.3 percent rise in turnover, to $14.14 million. Accordingly, XIRING's turnover has increased more than two-fold in two years.

XIRING outperformed the operating margin target announced at the beginning of the year (above 7 percent) and the revised target announced September 2008 (above 8.5 percent). For the full-year 2008, operating income amounted to $4.54 million. This corresponds to a margin of 12.4 percent on turnover and represents 62 percent growth. This growth includes a tax credit of $976,900 for research & development activities. Excluding this tax credit, operating income growth exceeded the target and reached 9.8 percent of turnover.

With a solid financial situation marked by the absence of debt, $22.8 million of shareholders' equity and financial flexibility via a net cash position of $4.5 million at Dec. 31, 2008.

XIRING is present in high growth markets.
- In its health care activity, XIRING aims to maintain its leadership position in SESAM-Vitale business solutions by building on growth drivers such as the deployment of the Vitale 2 healthcare benefits card, upgrades to the SESAM-Vitale system architecture and the integration of additional insurance benefits.
- In its banking activity, strong potential in the strong authentication solutions market is underpinned by the growth in e-commerce and remote banking and their associated security needs.

On Jan. 20, 2009, XIRING announced a turnover target of $39.1 million for the current year, with a possible variation of 10 percent, depending on the pace of banking solutions deployment in the second half of 2009. For the full-year 2009, XIRING has set itself a target for operating profitability in excess of 7 percent.

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