Gemalto claimed that the secure solution was verified and approved by the German banking authorities as keeping the concerned EC cards and credit cards compliant with the German card banking system.
Pursuant to IAS 37, Gemalto will book a special provision to cover the potential consequences related to this event. The charge, estimated in the range of EUR6m to EUR10m, will be booked as part of 2009 results.
Olivier Piou, CEO of Gemalto, said: “This is a regrettable incident, and we are doing everything in our power to support our banking customers in resuming full normal operations. We worked with them hand-in-hand to create a strong secure software solution that enables our customers to resolve the problem of the concerned cards without reissuing these cards. All along we kept at heart to consistently maintain a high level of security for our customers and the German cardholders.”
