The company currently generates around 90 percent of sales in the health care sector, where it sells hardware and software to secure transactions, including cards used by French citizens to claim reimbursements on medical treatment.

Xiring wants to expand its electronic identification business to contribute half its revenue within the next three years, however, CEO Georges Liberman said.

“Governments are going to mass-produce electronic devices such as ID cards, passports or driving licences,” Liberman said.

“There will be a need for the software and infrastructure that deals with the data they carry.”

The debt-crisis led several European countries to announce major cuts in spending over the past months, but Liberman said this was not impacting his business plan.

“Many e-document programs are already under way,” he said, adding that some were subsidised by the European Union.

“These documents will both allow nations to fight against major issues and eventually reduce costs.”  

Xiring posted sales of 20 million euros ($27.6 million) in 2010 and had an operating margin of 20.7 percent. It has not given any detailed forecast for 2011.

Xiring faces tough competition as many defense companies — such as EADS, Safran and Thales in France — are pushing into security markets as military budgets are trimmed.

Liberman said Xiring would seek to expand in Spain, Italy, Bulgaria and Romania, where governments want to introduce electronic identification documents.

Still, the group does not see India’s initiative to provide a unique identification number database for all of its 1.2 billion citizens as a priority for now, he said. Analysts say the project could be worth several billion dollars.

Liberman said Xiring would also pursue the export of its health care-related terminals and software.

“I would be comfortable with around 50 percent of our sales outside of France by 2014 or so,” he said, adding that the debt-free company would look at potential acquisition targets. It had 8.6 million euros in net cash at the end of June.

Asked about a possible takeover offer for Xiring, Liberman said the company was considering this scenario among others as it often received proposals.

“We are not blinkered,” he said.

“People are looking at us because we generate growth and profits.”

Any proposal would need to combine a good price as well as a sound industrial project, Liberman said.