NAVTEQ Reports Record Second Quarter Revenue

CHICAGO, July 26 /PRNewswire-FirstCall/ -- NAVTEQ Corporation (NYSE: NVT), a leading global provider of digital map data for vehicle navigation and location-based solutions, today reported record second quarter revenue for the quarter ended July 2, 2006.

Revenue in the quarter rose 11% over the second quarter of 2005 to $135.9 million. Operating income was $33.1 million, compared to $37.4 million in last year's second quarter. Net income was $23.8 million, compared to $25.3 million in the prior year's second quarter. Earnings per diluted share were $0.25, compared to $0.27 in the second quarter of 2005.

For the first six months of 2006, revenue was $258.3 million, which represented growth of 14% over the first six months of 2005. Year-to-date operating income was $53.8 million, compared to $62.3 million for the same period in 2005. First half net income was $39.9 million, compared to $42.0 million for the same period in 2005. Year-to-date diluted earnings per share were $0.42, compared to $0.45 for the first six months of 2005.

"We faced a number of challenges in the second quarter, including unfavorable car sales trends and delays in customer product launches, which prevented us from achieving the results we expected. Nevertheless, we remain as excited as ever about the many opportunities we see for the industry and our company in particular," said Judson Green, President and Chief Executive Officer of NAVTEQ. "We continue to invest in our database to enhance our leadership position in the marketplace and we expect better performance in the second half of the year."

Revenue from NAVTEQ's Europe, Middle East & Africa (EMEA) operations totaled $84.7 million in the quarter, up 3% from $82.0 million in the second quarter of 2005. The average U.S. dollar/euro exchange rate in the second quarter was $1.26, which was the same as the average rate in the comparable period last year. Americas revenue was $49.9 million in the quarter, a 22% increase over the $40.8 million posted in the second 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.

Cash and marketable securities totaled $259.5 million at July 2, 2006. Net cash provided by operating activities for the first six months of 2006 was $52.4 million.

Earnings Call Information

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

    When:      Wednesday, July 26, 2006 at 5:00 PM ET
    How:       Log on to the web at the URL above or call to listen in at
               800-599-9795 (North America) or 617-786-2905 (international),
               passcode 98125180
Email Contact

The company will provide a telephone replay of the conference call at 888-286-8010 (North America) or 617-801-6888 (international), passcode 23427467. The telephone replay will be accessible from 7:00 PM ET Wednesday, July 26, 2006 through 11:59 PM ET on Wednesday, August 2, 2006. An on-demand replay of the conference call and a presentation document summarizing our second quarter results will be available online at until August 28, 2006.


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 2,000 employees located in 133 offices in 24 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, 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     Six Months Ended
                                         June 26,  July 2,  June 26,  July 2,
                                           2005     2006      2005     2006

    Net revenue                          $122,832  135,945  $227,529  258,270

    Operating costs and expenses:
      Database creation and distribution
       costs                               57,433   65,686   108,321  128,537
      Selling, general, and
       administrative expenses             27,957   37,133    56,935   75,884

        Total operating costs and
         expenses                          85,390  102,819   165,256  204,421

    Operating income                       37,442   33,126    62,273   53,849

      Other income                            837     2,034          1,438        4,368

        Income  before  income  taxes                          38,279      35,160        63,711      58,217

            Income  tax  expense                                      13,015      11,396        21,662      18,775

        Net  income  before  cumulative  effect
          of  change  in  accounting  principle          25,264      23,764        42,049      39,442

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

        Net  income                                                        $25,264      23,764      $42,049      39,948

        Earnings  per  share  of  common  stock
          before  cumulative  effect  of  change
          in  accounting  principle  -
            Basic                                                                  $0.28        $0.26          $0.47        $0.43
            Diluted                                                              $0.27        $0.25          $0.45        $0.41

        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                                                                  $0.28        $0.26          $0.47        $0.43
            Diluted                                                              $0.27        $0.25          $0.45        $0.42

        Weighted  average  shares  of  common
          stock  outstanding  -
            Basic                                                                89,773      93,023        89,199      92,680
            Diluted                                                            93,854      95,754        93,678      95,644

                                                              NAVTEQ  CORPORATION
                                            Condensed  Consolidated  Balance  Sheets
                                                                  (In  thousands)

                                                                                                        Dec.  31,                    July  2,
                                                                                                            2005                          2006
        Current  assets:
            Cash  and  cash  equivalents                                          $85,070                      49,117
            Short-term  marketable  securities                              84,299                    184,367
            Accounts  receivable,  net                                              82,352                      85,181
            Deferred  income  taxes                                                    42,584                      19,526
            Prepaid  expenses  and  other  current  assets            15,203                      16,451

                                Total  current  assets                                309,508                    354,642

        Property  and  equipment,  net                                            20,828                      21,655
        Capitalized  software  development  costs,  net            25,761                      24,041
        Long-term  deferred  income  taxes,  net                        169,264                    179,289
        Long-term  marketable  securities                                    49,429                      26,065
        Acquired  intangible  assets,  net                                    16,815                      18,117
        Goodwill                                                                                  11,778                      15,133
        Deposits  and  other  assets                                                12,505                      12,422

                                Total  assets                                              $615,888                    651,364

          Liabilities  and  Stockholders'  Equity

        Current  liabilities:
            Accounts  payable                                                            $19,572                      12,978
            Accrued  payroll  and  related  liabilities                28,365                      26,368
            Fair  value  of  foreign  currency  derivative              3,265                              -
            Other  accrued  expenses                                                  28,658                      27,139
            Deferred  revenue                                                              38,703                      32,865

                                Total  current  liabilities                      118,563                      99,350

        Long-term  deferred  revenue                                                3,446                        2,932
        Other  long-term  liabilities                                              3,815                        2,796

                                Total  liabilities                                      125,824                    105,078

        Stockholders'  equity                                                        490,064                    546,286

                                Total  liabilities  and
                                  stockholders'  equity                            $615,888                    651,364

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

                                                                                                                Six  Months  Ended
                                                                                              June  26,  2005            July  2,  2006

        Cash  flows  from  operating  activities:
            Net  income                                                                        $42,049                        39,948
            Adjustments  to  reconcile  net  income
              to  net  cash  provided  by  operating  activities:
                    Depreciation  and  amortization                            10,277                        14,290
                    Deferred  income  taxes                                            18,230                        13,661
                    Stock  compensation  expense                                    4,819                          8,542
                    Tax  benefit  on  non-qualified  stock  options    3,060                                -
                    Cumulative  effect  of  change  in
                      accounting  principle                                                    -                              (506)
                    Provision  for  doubtful  receivables                    1,787                          4,739
                    Noncash  other                                                                  582                          1,269
                    Changes  in  operating  assets  and
                      liabilities,  net  of  effects  of
                      acquisitions                                                          (38,338)                    (29,539)

                            Net  cash  provided  by
                              operating  activities                                    42,466                        52,404

        Cash  flows  from  investing  activities:
            Acquisition  of  property  and  equipment                    (2,532)                      (5,919)
            Capitalized  software  development  costs                  (6,128)                      (5,536)
            Net  purchases  of  marketable  securities                (15,053)                    (77,071)
            Payments  for  acquisitions,  net  of  cash
              acquired                                                                                    -                          (5,044)
            Purchase  of  investments                                                    (500)                              -
            Note  receivable                                                                        -                              (300)

                            Net  cash  used  in  investing
                              activities                                                      (24,213)                    (93,870)

        Cash  flows  from  financing  activities:
            Issuance  of  common  stock  and  other
              equity  transactions                                                        2,667                          3,900

                            Net  cash  provided  by
                              financing  activities                                      2,667                          3,900

        Effect  of  exchange  rate  changes  on  cash                    (3,290)                        1,613

                            Net  increase  (decrease)  in
                              cash  and  cash  equivalents                          17,630                      (35,953)

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

        Cash  and  cash  equivalents  at  end  of  period            $47,731                        49,117

        (Logo:    )

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