Traffic.com Second Quarter Results - Revenue Up 18%
Traffic.com, announced financial results for the second quarter 2006, with revenue of $14.4 million, an increase of 18.4% from $12.1 million in the second quarter of 2005. The Company reported a net loss of $4.7 million, or $0.23 per share, in the second quarter of 2006, compared to a net loss of $8.9 million, or $2.80 per share, in the second quarter of 2005. Breakeven looks like it is coming for these guys. For the GPS user, it's good to see these types of companies survive and expand their networks so we can use the traffic data to our advantage.
Robert N. Verratti, chief executive officer, Traffic.com said, "We are pleased with the Company’s execution against our goal of creating a clear leadership position in the market for real-time traffic information. We continue to gain market share in our traditional advertising business, and the significant growth in our Internet-related and traffic data services results provide evidence that we are making progress in the transition of our business model to one with greater revenue and profitability growth potential.”
Monthly unique visitors to Traffic.com’s Internet properties totaled 1.7 million in June 2006, an increase of 37% from March.
“Traffic.com achieved a milestone in geographic expansion to 50 metropolitan areas well ahead of its original year-end target. In addition to the most comprehensive real-time traffic information coverage and technology offering, our growing mindshare continues to attract other industry leaders. We recently added AOL and Garmin International to our partner list. These additions and our existing partnership with NAVTEQ give us strategic relationships with the dominant market share leaders in both the personal navigation device and digital mapping data markets,” Verratti added.
Operational highlights since Traffic.com’s last earnings announcement include:
The Company’s registered user base grew to 240,000 as of June 30, 2006, an increase of 40% from the end of the prior quarter.
The Company increased its metropolitan area coverage to 50, an increase of 25% from the prior quarter’s earnings release and well ahead of the Company’s original target to have 50 markets under coverage by the end of 2006.
Traffic.com was chosen by Garmin International as the provider of real-time traffic information for its Mobile 20 wireless GPS navigation system.
The Georgia DOT signed an agreement to extend Traffic.com’s sensor network into Atlanta and the Pennsylvania Turnpike Commission signed a $3.3 million contract for Traffic.com to build out its sensor network to provide real-time traffic information.
The Florida DOT signed a $2 million agreement for Traffic.com to provide comprehensive real-time traffic information in Southwest Florida.
Microsoft officially launched its local.live.com site, which offers real-time traffic information provided by Traffic.com.
AOL chose Traffic.com to be the provider of real-time traffic information for its AOL.com and AOLCityGuide.com sites.
The Company launched its traffic hotline 1-866-MY-TRAFC for free real-time traffic reports on-the-go for both registered and unregistered users.
Read More in: Earnings Announcements | Traffic News
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Posted by Scott Martin at July 27, 2006 10:40 AM