SCM Microsystems’ recent merger with Hirsch Electronics accounts for nearly 70% of the company’s revenue increase, according to second quarter results.
“Our merger with Hirsch is proving a strategic success, as it has strengthened our financial performance across multiple metrics, our ability to capture new and existing sales opportunities and our overall business profile,” said SCM’s CEO Felix Marx.
“With only two months of operating results from our Hirsch subsidiary included in the second quarter, sales doubled in our security and identity solutions business, overall gross profit margin increased by eight percentage points and the Hirsch subsidiary generated operating profit on a standalone basis,” he added.
SCM’s primary business segment, which includes operations from the Hirsch subsidiary, is security and identity solutions, which provides contact, contactless and mobile smart card reader technology, digital identity and transaction platforms and access control systems to enable security, identity, contactless payment, e-health and electronic government services.
Second-quarter revenue from the security and identity solutions business was $10 million, up more than 100% from $4.9 million in the same quarter a year earlier. The primary reason for this increase was the inclusion of two months of revenue from the Hirsch subsidiary. On a standalone basis, revenue in the Hirsch subsidiary was up both sequentially and year over year in the second quarter, led by sales of access control systems and strong government agency deployments.
SCM’s smart card reader revenue increased 12%, driven by record sales in Asia (excluding Japan), which offset declines in Europe and Japan.