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Inside Secure announces strong 2016 results following completion of strategic transformation

Aix-en-Provence, France, Feb. 20, 2017 – Inside Secure (Euronext Paris: INSD), at the heart of security solutions for mobile and connected devices, is today reporting its consolidated results[1] prepared in accordance with IFRS, for the year ended December 31, 2016.

Commenting on these results, Amedeo D’Angelo, president and chief executive officer of Inside Secure, stated: "We are pleased with our achievements in 2016. Notably we have started to see the benefits of sole focus on security software and IP, as seen by the growth and improved margins. With our broad industry-leading product portfolio, we see concrete opportunities where we can play a key role in helping advance the market adoption of mobile payments and banking, content protection, enterprise and the Internet of things by making mobile and connected device s more secure. And with our strengthened liquidity and solid financial position, we want to take advantage of these opportunities to further grow software and silicon IP new license revenue while sustaining profitability."

Financial Results

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[1] The consolidated financial statements were prepared by the management board and reviewed by the supervisory board on February 17, 2017; the audit procedure has been completed by the statutory auditors.

[2] Prepared in accordance with IFRS, thus excluding the discontinued semiconductor business

[3] Excluding the semiconductor business and the NFC patent licensing program

[4] Some financial measures and performance indicators are presented on an adjusted basis as defined in Appendix 2 hereof. They should be considered additional information, which cannot replace any other strictly accounting-based operating or financial performance measure as presented in the consolidated financial statements prepared in accordance with IFRS in Appendix 1. The reconciliation of adjusted financial measures with IFRS is presented in Appendix 2.

[5] Pursuant to Inside Secure's decision to exit from the semiconductor business and in accordance with IFRS 5, income and expense items for this discontinued operation are recognized directly in "net income from discontinued operations" and thus excluded from revenue, adjusted operating income, and EBITDA. Figures for 2015 have been restated in a similar manner to allow comparisons with the corresponding 2016 figures.

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