TomTom Sales up 37%, Earnings up 81%
TomTom released earnings along with the news of their offer for TeleAtlas, and things were strong for the GPS navigation system maker. Revenue was up 37% over last year to €380 million (~$520 Mil) , driven by their 118% unit growth in navigation devices. Earnings was up 81% over last year, to €68 million (~$91 Mil).
“In the second quarter of 2007, TomTom again delivered good results with strong revenue and strong profitability. We continue to deliver high margins, demonstrating our ability to manage our growth and costs.
These results are underpinned by the quality of our products and services. We continue to provide innovation leadership in the personal navigation category which was once more demonstrated recently by the positive reaction of our partners to the launch of our new GO range and our revolutionary new Map ShareTM technology in early June.
We are especially excited about our second country contract to deliver superior real time traffic services. This will be made available to our customers in the UK in the first half of 2008. The launch of the Dutch service is expected in the second half of 2007.
For the second half of the year, we have a strong product line-up in place and market conditions in both Europe and North America continue to be very positive. We now expect to ship a higher number of PND units and to deliver stronger margins for the full year when compared to our guidance last quarter.
Highlights include......
Second quarter 2007 financial highlights
Revenue of , up 29% sequentially and up 37% year on year
Portable navigation device (PND) volume of 1.8 million, up 36% sequentially and up 118% year on year
Gross margin of 45%, up 5 points sequentially and up 2 points year on year
Operating margin of 25%, up 6 points sequentially and up 2 points year on year
Net profit of €68 million, up 56% sequentially and up 81% year on year
Fully diluted EPS of €0.58, up 56% sequentially and up 81% year on year
Net cash flow from operating activities of €72 million
Second quarter 2007 operational highlights
New TomTom GO range launched
MapShare™ proprietary map improvement technology announced
Joint development announced with Vodafone UK to deliver unique new advanced travel time information system in the UK
Outlook 2007
European and North American markets for PNDs together expected to grow to around 21 million units in 2007
Revenue expectation for 2007 of between €1.6 billion to €1.8 billion maintained
PND unit forecast for 2007 increased to between 8 and 9 million
Gross margin of at least 40% of revenue and operating margin of at least 20% of revenue now expected for the full year
Read More in: Earnings Announcements
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Posted by Scott Martin at July 23, 2007 7:34 PM
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