Gemplus faces "difficult future"

NEWS Smartcard manufacturer Gemplus has issued a fourth consecutive profits warning blaming a fall in demand for mobile phone SIM cards and a weak dollar. The company is now predicting an operating loss of between E30m (£18.6m) and E37m (£23m) for the third quarter based on revenues of E225m (£140m) to E235m (£146m). Gemplus previously forecasted an operating loss of E11m (£6.8m) to E17m (£10.5m) on revenues of E259m (£161m). Chief executive Antonio Perez said the immediate future will be "very difficult" and warned that fourth quarter results are also likely to be worse than previously expected, the Financial Times reports.