NAVTEQ Reports Record Second Quarter Revenue
Chicago, Illinois, United States of America – NAVTEQ Corporation (NYSE: NVT), a leading global provider of digital map data for vehicle navigation and location-based solutions, reported record second quarter revenue for the quarter ended July 2, 2006.
Revenue in the quarter rose 11% over the second quarter of 2005 to $135.9 million. Operating income was $33.1 million, compared to $37.4 million in last year’s second quarter. Net income was $23.8 million, compared to $25.3 million in the prior year’s second quarter. Earnings per diluted share were $0.25, compared to $0.27 in the second quarter of 2005.
For the first six months of 2006, revenue was $258.3 million, which represented growth of 14% over the first six months of 2005. Year-to-date operating income was $53.8 million, compared to $62.3 million for the same period in 2005. First half net income was $39.9 million, compared to $42.0 million for the same period in 2005. Year-to-date diluted earnings per share were $0.42, compared to $0.45 for the first six months of 2005.
"We faced a number of challenges in the second quarter, including unfavorable car sales trends and delays in customer product launches, which prevented us from achieving the results we expected. Nevertheless, we remain as excited as ever about the many opportunities we see for the industry and our company in particular," said Judson Green, President and Chief Executive Officer of NAVTEQ. "We continue to invest in our database to enhance our leadership position in the marketplace and we expect better performance in the second half of the year."
Revenue from NAVTEQ’s Europe, Middle East & Africa (EMEA) operations totaled $84.7 million in the quarter, up 3% from $82.0 million in the second quarter of 2005. The average U.S. dollar/euro exchange rate in the second quarter was $1.26, which was the same as the average rate in the comparable period last year. Americas revenue was $49.9 million in the quarter, a 22% increase over the $40.8 million posted in the second quarter of 2005. Asia Pacific revenue, principally derived from the company’s Picture Map International subsidiary in South Korea acquired in July 2005, was $1.4 million.
Cash and marketable securities totaled $259.5 million at July 2, 2006. Net cash provided by operating activities for the first six months of 2006 was $52.4 million.
An on-demand replay of the conference call and a presentation document summarizing our second quarter results will be available online at http://investor.navteq.com
until August 28, 2006.
NAVTEQ is a leading provider of comprehensive digital map information for automotive navigation systems, mobile navigation devices, Internet-based mapping applications, and government and business solutions. NAVTEQ creates the digital maps and map content that power navigation and location-based services solutions around the world. The Chicago-based company was founded in 1985 and has approximately 2,000 employees located in 133 offices in 24 countries. NAVTEQ is a trademark in the U.S. and other countries.
This document may include certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts and statements identified by words such as "expects", "anticipates", "intends", "plans", "believes", "seeks", "estimates" or words of similar meaning. These statements also include statements about the company’s future financial and operating results. The statements are based on our current beliefs or expectations and are inherently subject to various risks and uncertainties, including those set forth under "Item 1A. Risk Factors" in the Company’s Annual Report on Form 10-K for the year ended December 31, 2005, as filed with the Securities and Exchange Commission.
Actual results may differ materially from these expectations due to changes in global political, economic, business, competitive, market and regulatory factors. NAVTEQ does not undertake any obligation to update any forward-looking statements contained in this document.