First quarter revenue rose 40% over the same period in 2007 to $224.5 million. Excluding the impact of foreign currency rate fluctuation, revenue for the first quarter grew 32%. Operating income was $40.8 million, a 6% increase over last year's first quarter. Net income in the quarter grew 9% over the prior year to $32.9 million. Earnings per diluted share in the quarter of $0.32 grew 4% over the same period in 2007.
"We are quite pleased with the company's first quarter revenue growth, particularly in this uncertain economic environment," said Judson Green, president and chief executive officer. "The first quarter was also the beginning of a very important investment year for the company as we continue to develop the next generation products and services our customers demand. As we anticipated, first quarter earnings growth was dampened by a planned increase in spending on capabilities we consider essential to our future success."
Revenue from NAVTEQ's Europe, Middle East & Africa (EMEA) region totaled $114.5 million in the quarter, up 31% from the first quarter of 2007. Excluding the impact of foreign currency rate fluctuation, EMEA revenue for the first quarter grew 17%. Revenue for the Americas region was $108.9 million in the quarter, a 54% increase over the first quarter of 2007. Asia Pacific revenue was $1.1 million in the quarter, a decline of 43% from the first quarter of 2007.
Cash and marketable securities totaled $532.2 million at March 30, 2008. Net cash provided by operating activities for the first quarter was $76.8 million.
Supplementary Information
In lieu of a conference call, management has provided a PowerPoint document containing supplementary information on the results, which is available in the 'News & Events' section of our IR website at investor.navteq.com.
About NAVTEQ
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 over 3,500 employees located in 174 offices in 32 countries.
NAVTEQ is a trademark in the U.S. and other countries. All rights reserved.
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. 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 each of the Company's most recent Annual and Quarterly Reports 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.
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NAVTEQ CORPORATION
Condensed Consolidated Statements of Income
(In thousands, except per share data)
Quarter Ended
April 1, March 30,
2007 2008
(Unaudited) (Unaudited)
Net revenue:
Digital map licensing and related
revenues $150,703 208,837
Advertising 6,228 10,956
Other 3,020 4,657
Total net revenue 159,951 224,450
Operating costs and expenses:
Database creation and delivery costs 74,255 115,423
Selling, general, and administrative
expenses 47,353 68,274
Total operating costs and expenses 121,608 183,697
Operating income 38,343 40,753
Other income 3,787 5,366
Income before income taxes 42,130 46,119
Income tax expense 11,881 13,236
Net income $30,249 32,883
Earnings per share of common stock -
Basic $0.32 0.33
Diluted $0.31 0.32
Weighted average shares of common
stock outstanding -
Basic 94,802 98,709
Diluted 97,265 101,951
NAVTEQ CORPORATION
Condensed Consolidated Balance Sheets
(In thousands)
Dec. 31, March 30,
2007 2008
Assets (Unaudited)
Current Assets:
Cash and cash equivalents $159,857 231,968
Short-term marketable securities 226,126 171,710
Accounts receivable, net 193,505 141,269
Deferred income taxes, net 39,872 36,696
Prepaid expenses and other
current assets 32,752 40,283
Total current assets 652,112 621,926
Property and equipment, net 111,687 121,379
Capitalized software development
costs, net 27,084 27,510
Long-term deferred income taxes,
net 204,840 204,758
Long-term marketable securities 76,855 128,537
Goodwill and acquired intangible
assets, net 247,956 247,799
Deposits and other assets 7,503 9,767
Total assets $1,328,037 1,361,676
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $32,175 32,224
Accrued payroll and related
liabilities 48,935 39,413
Other accrued expenses 52,362 43,730
Accrued rebates 62,279 58,697
Deferred revenue 45,582 41,611
Total current liabilities 241,333 215,675
Long-term deferred revenue 45,148 45,885
Long-term deferred taxes, net 6,220 6,264
Other long-term liabilities 28,762 31,179
Total liabilities 321,463 299,003
Stockholders' equity 1,006,574 1,062,673
Total liabilities and
stockholders' equity $1,328,037 1,361,676
NAVTEQ CORPORATION
Condensed Consolidated Statements of Cash Flows
(In thousands)
Quarter Ended
April 1, March 30,
2007 2008
(Unaudited) (Unaudited)
Cash flows from operating activities:
Net income $30,249 32,883
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 9,108 12,437
Deferred income taxes 470 4,611
Stock compensation expense 4,329 5,614
Provision for doubtful receivables 3 1,156
Noncash other 3 2,289
Changes in operating assets and
liabilities, net of effects of
acquisitions 34,895 17,806
Net cash provided by
operating activities 79,057 76,796
Cash flows from investing activities:
Acquisition of property and equipment (6,602) (14,071)
Capitalized software development
costs (5,175) (4,339)
Net (purchases) sales of marketable
securities (31,688) 7,211
Payments for acquisitions, net of
cash acquired (46,368) (176)
Net cash used in investing
activities (89,833) (11,375)
Cash flows from financing activities:
Issuance of common stock and other
equity transactions 2,233 (2,138)
Net cash provided by (used
in) financing activities 2,233 (2,138)
Effect of exchange rate changes on cash 840 8,828
Net increase (decrease) in
cash and cash equivalents (7,703) 72,111
Cash and cash equivalents at beginning
of period 122,335 159,857
Cash and cash equivalents at end of
period $114,632 231,968
Web site: http://www.navteq.com/