NAVTEQ Reports Record Revenue for Third Quarter of 2006

CHICAGO, Oct. 25 /PRNewswire-FirstCall/ -- NAVTEQ Corporation (NYSE: NVT), a leading global provider of digital map data for vehicle navigation and location-based solutions, today reported record third quarter revenue for the quarter ended October 1, 2006.

Revenue in the quarter rose 16% over the third quarter of 2005 to $142.7 million. Operating income grew 22% over the year-ago period to $37.0 million. Net income in the quarter was $27.1 million, compared to $101.1 million in the prior year's third quarter. Diluted earnings per share for the quarter were $0.28, compared to $1.07 in the prior year's third quarter.

For the first nine months of 2006, revenue was $400.9 million, which represented growth of 14% over the same period in 2005. Year-to-date operating income decreased 2% to $90.9 million. Net income for the first nine months of 2006 decreased to $67.0 million, compared to $143.2 million for the same period in 2005. Year-to-date diluted earnings per share were $0.70, compared to $1.52 for the first nine months of 2005.

Last year's net income and diluted earnings per share for both the third quarter and the first nine months were increased significantly due in large part to the recording of a net income tax benefit of $80.6 million, or $0.85 per diluted share, primarily related to the reversal of a valuation allowance on deferred tax assets associated with net operating loss and deferred interest carryforwards.

"We are pleased with our third quarter results given the challenges we have faced in 2006," said Judson Green, President and Chief Executive Officer of NAVTEQ. "Solid third quarter revenue performance and effective cost management helped to drive improved margins and profit growth. We expect to continue this trend as the year comes to a close."

Revenue from NAVTEQ's Europe, Middle East & Africa (EMEA) operations totaled $85.2 million in the quarter, up 10% from the third quarter of 2005. The average U.S. dollar/Euro exchange rate in the second quarter was $1.27, compared to $1.22 in the comparable period last year. Americas revenue was $56.1 million in the quarter, a 31% increase over the $42.7 million posted in the third 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, compared to $3.1 million in the prior year.

Cash and marketable securities totaled $278.7 million at October 1, 2006. Net cash provided by operating activities for the first nine months of 2006 was $62.6 million.

Business Outlook

Our 2006 financial performance is being negatively impacted by a number of factors, including unfavorable car sales trends in both Europe and North America, lower than expected revenue relating to portable devices in Europe, and the collectibility of a customer receivable. Due to the impact of these factors, management is updating its guidance on 2006 financial performance.

The following forward-looking statement reflects NAVTEQ management's expectations as of October 25, 2006. For the fiscal year 2006, NAVTEQ expects revenue in the range of $565 million to $580 million and earnings per diluted share of $1.10 to $1.16, assuming an average annual U.S. dollar/Euro exchange rate of $1.25 and average diluted shares outstanding of 95.7 million.

Earnings Call Information

    The information for the company's earnings release conference call is as

    When:     Wednesday, October 25, 2006 at 5:00 PM ET
    How:      Log on to the web at the URL above or call to listen in at
              800-659-2037 (North America) or 617-614-2713 (international),
              passcode 94858900
Email Contact

    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 approximately 2,100 employees located in 139 offices in 25 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 and "Item 1A. Risk Factors" in the Company's Quarterly Report on Form 10-Q for the quarter ended July 2, 2006, in each case 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.

                              NAVTEQ CORPORATION
                 Condensed Consolidated Statements of Income
                    (In thousands, except per share data)

                                       Quarter Ended       Nine Months Ended
                                     Sept. 25,  Oct. 1,   Sept. 25,  Oct. 1,
                                       2005       2006      2005       2006

    Net revenue                      $123,005   142,658   $350,534   400,928

    Operating costs and expenses:
      Database creation and
       distribution costs              60,906    69,397    169,227   197,934
      Selling, general, and
       administrative expenses         31,676    36,217     88,611   112,101

        Total operating costs and
         expenses                      92,582   105,614      257,838      310,035

        Operating  income                                      30,423        37,044          92,696        90,893

            Other  income                                            1,202          2,925            2,640          7,293

        Income  before  income  taxes                  31,625        39,969          95,336        98,186

            Income  tax  (benefit)  expense        (69,490)      12,890        (47,828)      31,665

        Net  income  before  cumulative
          effect  of  change  in
          accounting  principle                          101,115        27,079        143,164        66,521

            Cumulative  effect  of  change
              in  accounting  principle,
              net  of  tax                                                  -                  -                    -                  506

        Net  income                                              $101,115        27,079      $143,164        67,027

        Earnings  per  share  of  common
          stock  before  cumulative
          effect  of  change  in
          accounting  principle  -
            Basic                                                          $1.11          $0.29            $1.60          $0.72
            Diluted                                                      $1.07          $0.28            $1.52          $0.70

        Cumulative  effect  of  change  in
          accounting  principle
          per  share  of  common  stock  -
            Basic                                                            $-                $-                  $-              $0.01
            Diluted                                                        $-                $-                  $-              $0.01

        Earnings  per  share  of  common
          stock  -
            Basic                                                          $1.11          $0.29            $1.60          $0.72
            Diluted                                                      $1.07          $0.28            $1.52          $0.70

        Weighted  average  shares  of
          common  stock  outstanding  -
            Basic                                                        90,701        93,293          89,700        92,884
            Diluted                                                    94,521        95,718          93,959        95,668

                                                            NAVTEQ  CORPORATION
                                        Condensed  Consolidated  Balance  Sheets
                                                                (In  thousands)

                                                                                                        Dec.  31,                    Oct.  1,
                                                                                                            2005                          2006
        Current  assets:
            Cash  and  cash  equivalents                                          $85,070                      66,403
            Short-term  marketable  securities                              84,299                    151,419
            Accounts  receivable,  net                                              82,352                    108,634
            Deferred  income  taxes                                                    42,584                      17,327
            Prepaid  expenses  and  other  current
              assets                                                                                15,203                      18,848

                                Total  current  assets                                309,508                    362,631

        Property  and  equipment,  net                                            20,828                      22,898
        Capitalized  software  development
          costs,  net                                                                            25,761                      21,115
        Long-term  deferred  income  taxes,  net                        169,264                    190,110
        Long-term  marketable  securities                                    49,429                      60,881
        Acquired  intangible  assets,  net                                    16,815                      17,265
        Goodwill                                                                                  11,778                      15,148
        Deposits  and  other  assets                                                12,505                      11,796

                                Total  assets                                              $615,888                    701,844

                                          Liabilities  and  Stockholders'  Equity

        Current  liabilities:
            Accounts  payable                                                            $19,572                      12,519
            Accrued  payroll  and  related
              liabilities                                                                      28,365                      26,587
            Fair  value  of  foreign  currency
              derivative                                                                          3,265                              -
            Other  accrued  expenses                                                  28,658                      32,417
            Deferred  revenue                                                              38,703                      35,625

                                Total  current  liabilities                      118,563                    107,148

        Long-term  deferred  revenue                                                3,446                        2,638
        Other  long-term  liabilities                                              3,815                        2,145

                                Total  liabilities                                      125,824                    111,931

        Stockholders'  equity                                                        490,064                    589,913

                                Total  liabilities  and
                                  stockholders'  equity                            $615,888                    701,844

                                                            NAVTEQ  CORPORATION
                              Condensed  Consolidated  Statements  of  Cash  Flows
                                                                (In  thousands)

                                                                                                                Nine  Months  Ended
                                                                                                Sept.  25,  2005        Oct.  1,  2006

        Cash  flows  from  operating  activities:
            Net  income                                                                      $143,164                      67,027
            Adjustments  to  reconcile  net  income
              to  net  cash  provided  by  operating
                    Depreciation  and  amortization                            16,525                      21,954
                    Deferred  income  taxes                                          (88,768)                      5,714
                    Stock  compensation  expense                                    6,887                      11,197
                    Tax  benefit  on  non-qualified
                      stock  options                                                          37,611                              -
                    Cumulative  effect  of  change  in
                      accounting  principle                                                    -                            (506)
                    Provision  for  doubtful
                      receivables                                                                1,826                        1,605
                    Noncash  other                                                                  855                        1,728
                    Changes  in  operating  assets  and
                      liabilities,  net  of  effects  of
                      acquisitions                                                          (40,620)                  (46,142)

                            Net  cash  provided  by
                              operating  activities                                    77,480                      62,577

        Cash  flows  from  investing  activities:
            Acquisition  of  property  and  equipment                    (5,086)                  (10,305)
            Capitalized  software  development
              costs                                                                                  (8,948)                    (6,332)
            Net  purchases  of  marketable
              securities                                                                      (47,120)                  (78,604)
            Payments  for  acquisitions,  net  of
              cash  acquired                                                                  (8,234)                    (5,044)
            Purchase  of  investments                                                (1,201)                            -
            Note  receivable                                                                        -                            (300)

                            Net  cash  used  in  investing
                              activities                                                      (70,589)                (100,585)

        Cash  flows  from  financing  activities:
            Issuance  of  common  stock  and  other
              equity  transactions                                                        5,147                      17,624

                            Net  cash  provided  by
                              financing  activities                                      5,147                      17,624

        Effect  of  exchange  rate  changes  on  cash                    (2,183)                      1,717

                            Net  increase  (decrease)  in
                              cash  and  cash  equivalents                            9,855                    (18,667)

        Cash  and  cash  equivalents  at  beginning
          of  period                                                                              30,101                      85,070

        Cash  and  cash  equivalents  at  end  of
          period                                                                                  $39,956                      66,403

        (Logo:    )

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