Published on June 26, 2007
TO
BUSINESS AND TECHNOLOGY EDITORS:
SCM
Microsystems Provides Updated Guidance
FREMONT,
Calif., June 26 /PRNewswire-FirstCall/ -- SCM Microsystems, Inc. (Nasdaq:
SCMM,
Prime Standard: SMY), a leading provider of solutions that open the Digital
World, today announced that, based on currently available information for
its
in-progress second quarter ending June 30, 2007, the Company expects that
revenues for the first half of 2007 will be approximately 20% below levels
for
the first half of 2006, rather than flat to slightly down as indicated in
previously provided guidance. These anticipated first-half results will have
a
negative impact on the Company's
previously issued guidance for its full 2007 fiscal year, but forecasts for
the
second half and resulting full-year expectations are still being evaluated
by
the Company.
"While
the number of smart-card based security programs continues to grow in the
government, finance and business sectors, this is still an emerging market,
and
the timing of individual projects can significantly influence demand in any
given period," commented Stephan Rohaly, chief financial officer of SCM
Microsystems and, as previously announced, interim chief executive officer
effective July 1, 2007. "A combination of factors -- including recent budget
freezes at U.S. government agencies, demand fluctuations in our Asian market,
and project delays in Europe -- have contributed to uncharacteristically
low
smart card reader sales during our second quarter. Our digital media reader
business has also been impacted by delayed orders. Based on discussions with
our
customers and distributors, we believe that the factors influencing our business
in the second quarter are primarily market related and temporary in nature.
We
expect that market dynamics will stabilize and become more predictable as
more
chip card-based security programs demonstrate success. As this occurs, we
believe that SCM will be well positioned to benefit, based on our firm position
as a leading provider of secure reader technology for the expanding global
smart
card applications market."
SCM's
second
quarter remains in progress and ends on June 30, 2007. The updated guidance
contained in this press release is based on information currently available
to
the Company, which does not reflect the full second quarter, and is subject
to
change as a result of the completion of the second quarter, the review by
the
Company of its financial results for the second quarter and the preparation
of
the related financial statements. SCM expects to release its second quarter
results in mid August 2007.
About
SCM
Microsystems
SCM
Microsystems is a leading supplier of solutions that open the Digital World
by
enabling people to conveniently access digital content and services. The
company
develops, markets and sells the industry's broadest range of smart card reader
technology for secure PC, network and physical access and digital media readers
for transfer of digital content to OEM customers in the government, financial,
enterprise, consumer electronics and photographic equipment markets worldwide.
Global headquarters are in Ismaning, Germany. For additional information,
visit
the SCM Microsystems web site at http://www.scmmicro.com.
NOTE:
This press release contains forward-looking statements within the meaning
of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the
Securities Exchange Act of 1934, as amended. These include, without limitation,
our statements regarding our expectations that revenues for the first half
of
2007 will be approximately 20% below levels for the first half of 2006; that
revised anticipated first-half results are expected to have a negative impact
on
our previously issued guidance for our full 2007 fiscal year; that market
dynamics will stabilize and become more predictable as more chip card-based
security programs demonstrate success; and that SCM will be well positioned
to
benefit from a more stable smart card-based security market, if it occurs.
These
statements are subject to risks and uncertainties which may cause actual
results
to differ materially from those contemplated herein. Our financial results
may
not meet expectations; the smart card-based security market in which we
participate may not become more stable and predictable; and we may not benefit
from a more stable market, if it occurs. Some of the risks and uncertainties
that could cause our actual business and operating results to differ include,
but are not limited to, our ability to grow market share and revenues based
on a
strategy of participating in specific early stage markets; our ability to
successfully develop and introduce new products that satisfy the evolving
and
increasingly complex requirements of customers; the markets in which we
participate or target may not grow, converge or standardize at anticipated
rates
or at all, including the government and enterprise security markets which
we are
targeting; we may not successfully compete in the markets in which we
participate or target; and competitors could take market share or create
pricing
pressure. For a discussion of further risks and uncertainties related to
our
business, please refer to our public company reports, including our Annual
Report on Form 10-K and our amended Annual Report on Form 10-K/A for the
year
ended December 31, 2006, filed with the U.S. Securities and Exchange
Commission.
All
trade
names are trademarks or registered trademarks of their respective
holders.
SOURCE
SCM Microsystems, Inc.
| -0- | 06/26/2007 | ||
| /CONTACT: Stephan Rohaly, Chief Financial Officer, +49 89 95 95 5101, | |||
| srohaly@scmmicro.de, or Darby Dye, Investor Relations-US, +1-510-249-4883, ddye@scmmicro.com/ | |||
| /First Call Analyst: / | |||
| /FCMN Contact: / | |||
| /Web site: http://www.scmmicro.com/ | |||
| (SCMM) | |||
| CO: SCM Microsystems, Inc. | |||
| ST: California | |||
| IN: CPR CSE | |||
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