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SCM Microsystems Reports Third Quarter 2009 Results
Date:11/16/2009

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Third Quarter Results

On April 30, 2009, SCM completed its merger with Hirsch Electronics Corporation, and SCM's financial results have included operating results for the Hirsch subsidiary since the date of acquisition. All figures are reported in accordance with U.S. GAAP, except as noted.

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. Revenue from the Security and Identity Solutions business was $12.5 million in the third quarter of 2009, up 113% from $5.9 million in the third quarter of 2008. The primary reason for this increase was the inclusion of revenue from the Hirsch subsidiary.

Sales of Hirsch products and services in the third quarter of 2009 were up year over year. In addition to strong sales in the U.S. for government agency deployments, focus on building channels and relationships in Europe and Asia resulted in new revenue streams for Hirsch in these regions in the 2009 third quarter. Sales of SCM smart card reader products in the U.S. and Asia remained relatively strong and rose sequentially in the third quarter of 2009, but were lower compared with the same quarter of the previous year. Sales of SCM smart card reader products were higher year over year in Europe and benefitted from a large order for an ID project in Spain. At the same time, sales of eHealth terminals for the electronic healthcard program in Germany were lower than expected, due to slower than anticipated adoption within the initial test region and the transition in governmental administration following the country's recent national elections.

Revenue from SCM's Digital Media and C
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SOURCE SCM Microsystems, Inc.
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