TomTom Sales up 21%, Profit up 36%
TomTom released earnings this past week and things are looking good again at the GPS maker, as they beat earnings estimates. They sold 83% more units than the same period last year, and as a result, had 21% sales growth, resulting in a profit up 36% over last year. Not bad numbers, and TomTom upped their estimates for number of units sold from 8-9 million this year to 9-10 million units this year. The holiday season is only a few weeks away and has to be a test of how anyone is doing in the GPS market.
In this past quarter TomTom announced their TomTom GO 920, and the new upgraded TomTom ONE (3rd ed.) and the TomTom ONE XL-S.
TomTom’s Chief Executive Officer, Harold Goddijn said, “TomTom delivered a strong set of results this quarter with record units shipped, record profits and record cash flow in a market that continues to grow rapidly.
Following successful tests of our real time traffic solution in the Netherlands we will launch our new service in November. Discussions with mobile phone operators in other European countries are progressing and we expect to make further announcements shortly.
Ahead of the fourth quarter we have launched important new products, which have been received positively by the market. The amount of customer feedback we have received since the introduction of Map Share™ is also encouraging. We are confident that with our strong product line-up, supported by advertising campaigns and promotional activity TomTom will be able to defend its market position in Europe and to grow market share in the US.”
Meanwhile, Jocelyn Vigreux, President of TomTom USA, and , Nelson Chan CEO of Magellan were elected to the board of the Consumer Electronics Association, or CEA. The CEA is a trade group that works on behalf of the consumer electronics industry to promote and grow business. To me, having two leaders of GPS companies on the board signals the importance of the GPS category in consumer electronics.
Read More in: Earnings Announcements | TomTom GPS News
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Posted by Scott Martin at October 26, 2007 9:23 PM