NAVTEQ Reports Record Second Quarter Revenue and Operating Income
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NAVTEQ Reports Record Second Quarter Revenue and Operating Income

CHICAGO, July 31 /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 and operating income for the quarter ended July 1, 2007.

Revenue in the quarter rose 49% over the second quarter of 2006 to $202.3 million. Operating income was $54.0 million, compared to $33.1 million in last year's second quarter. Net income was $40.9 million, compared to $23.8 million in the prior year's second quarter. Earnings per diluted share were $0.41, compared to $0.25 in the second quarter of 2006.

For the first six months of 2007, revenue was $362.3 million, which represented growth of 40% over the first six months of 2006. Year-to-date operating income was $92.4 million, compared to $53.8 million for the same period in 2006. First half net income was $71.1 million, compared to $39.9 million for the same period in 2006. Year-to-date diluted earnings per share were $0.72, compared to $0.42 for the first six months of 2006.

"Our exceptional second quarter results and strong first half performance give us great momentum as we enter the second half of the year," said Judson Green, President and Chief Executive Officer of NAVTEQ. "We are particularly excited by the surging growth we have seen in maps for portable devices and the relative stability of our automotive business despite unfavorable car sales trends in our core geographies."

"First half expenses were lighter than we originally anticipated due to adjustments we made to our database investment plan and lower than expected costs in our distribution business," Mr. Green continued. "We expect the second half of the year will be an important investment period for the company as we work toward completion of the projects and initiatives in our annual operating plan."

Revenue from NAVTEQ's Europe, Middle East & Africa (EMEA) operations totaled $117.6 million in the quarter, up 39% from $84.7 million in the second quarter of 2006. The average U.S. dollar/euro exchange rate in the second quarter was $1.35, compared to $1.26 in the comparable period last year. Americas revenue was $81.8 million in the quarter, a 64% increase over the $49.9 million posted in the second quarter of 2006. Asia Pacific revenue, which is derived from the company's Korean subsidiary, was $2.8 million.

Cash and marketable securities totaled $390.1 million at July 1, 2007. Net cash provided by operating activities for the first six months of 2007 was $153.0 million.

Business Outlook

The following forward-looking statements reflect NAVTEQ management's expectations as of July 31, 2007. Management is revising its full-year outlook primarily as a result of the company's strong first half performance and better-than-expected growth trends in maps for portable devices. For the fiscal year 2007, NAVTEQ expects revenue of $780 million to $795 million and earnings per diluted share of $1.45 to $1.50. These ranges assume an effective worldwide tax rate of approximately 29%, an average U.S. dollar/euro exchange rate of $1.35, and average diluted shares outstanding of approximately 99.6 million on a full year basis.

Earnings Call Information

The conference call will take place on Tuesday, July 31, 2007 at 5:00 p.m. ET and be available via webcast at http://investor.navteq.com or by calling 866-831-6247 (North America) 617-213-8856 (international) with passcode 71074582.

An on-demand replay of the conference call will be available at the website above for thirty days following the call. The company will also provide a replay of the conference call at 888-286-8010 (North America) 617-801-6888 (international) with passcode 98949086. The telephone replay will be accessible for one week following the call.

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 over 3,000 employees located in 168 offices in 30 countries.

NAVTEQ is a trademark in the U.S. and other countries. All rights reserved.

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. Such statements may include, but are not limited to, planned expenditures and expectations of future financial performance 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 each of the Company's Annual Report on Form 10-K for the year ended December 31, 2006 and the Company's Quarterly Report on Form 10-Q for the quarter ended April 1, 2007, 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
                                         July 2,   July 1,   July 2,   July 1,
                                           2006     2007       2006     2007
                                                     (Unaudited)
    Net revenue:
      Digital map licensing and related
       revenues                          $133,062  183,268   $251,527  333,971
      Advertising                              --   15,565         --   21,793
      Other                                 2,883    3,471      6,743    6,491
        Total net revenue                 135,945  202,304    258,270  362,255

    Operating costs and expenses:
      Database creation and delivery
       costs                               65,686   94,263    128,537  168,518
      Selling, general, and
       administrative expenses             37,133   54,011     75,884  101,364

        Total operating costs and
         expenses                         102,819  148,274    204,421  269,882

    Operating income                       33,126   54,030     53,849   92,373

      Other income                          2,034    4,041      4,368    7,828

    Income before income taxes             35,160   58,071     58,217  100,201

      Income tax expense                   11,396   17,177     18,775   29,058

    Net income before cumulative effect
     of change in accounting principle     23,764   40,894     39,442   71,143

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

    Net income                            $23,764   40,894    $39,948   71,143

    Earnings per share of common stock
     before cumulative effect of change
     in accounting principle -
      Basic                                 $0.26    $0.42      $0.43    $0.74
      Diluted                               $0.25    $0.41      $0.41    $0.72

    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                                 $0.26    $0.42      $0.43    $0.74
      Diluted                               $0.25    $0.41      $0.42    $0.72

    Weighted average shares of common
     stock outstanding -
      Basic                                93,023   97,817     92,680   96,310
      Diluted                              95,754  100,156     95,644   98,712



                              NAVTEQ CORPORATION
                      Condensed Consolidated Balance Sheets
                                 (In thousands)

                                                   Dec. 31,          July 1,
                                                    2006              2007
                                                                   (Unaudited)
                                     Assets
    Current assets:
      Cash and cash equivalents                   $122,335           113,855
      Short-term marketable securities             137,163           213,468
      Accounts receivable, net                     126,081           127,391
      Deferred income taxes, net                     9,232            26,483
      Prepaid expenses and other current assets     17,744            20,097

                Total current assets               412,555           501,294

    Property and equipment, net                     27,462            78,353
    Capitalized software development costs, net     18,844            23,071
    Long-term deferred income taxes, net           187,391           220,231
    Long-term marketable securities                 63,033            62,759
    Goodwill and acquired intangible assets, net    72,814           210,453
    Deposits and other assets                       12,602             3,716

                Total assets                      $794,701         1,099,877



                      Liabilities and Stockholders' Equity

    Current liabilities:
      Accounts payable                             $22,874            22,581
      Accrued payroll and related liabilities       33,571            36,163
      Other accrued expenses                        40,327            56,111
      Deferred revenue                              43,639            55,287

                Total current liabilities          140,411           170,142

    Long-term deferred revenue                       2,874            45,273
    Other long-term liabilities                      2,035            22,213

                Total liabilities                  145,320           237,628

    Stockholders' equity                           649,381           862,249

                Total liabilities and
                 stockholders' equity             $794,701         1,099,877



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

                                                      Six Months Ended
                                                July 2, 2006      July 1, 2007
                                                         (Unaudited)

    Cash flows from operating activities:
      Net income                                   $39,948            71,143
      Adjustments to reconcile net income to
       net cash provided by operating activities:
         Depreciation and amortization              14,290            19,432
         Deferred income taxes                      13,661             1,705
         Stock compensation expense                  8,542             9,542
         Cumulative effect of change in
          accounting principle                        (506)               --
         Provision for doubtful receivables          4,739             1,211
         Noncash other                                 611                --
         Changes in operating assets and
          liabilities, net of effects of
          acquisitions                             (28,881)           49,968

              Net cash provided by operating
               activities                           52,404           153,001

    Cash flows from investing activities:
      Acquisition of property and equipment         (5,919)          (33,617)
      Capitalized software development costs        (5,536)          (10,460)
      Net purchases of marketable securities       (77,071)          (75,484)
      Payments for acquisitions, net of cash
       acquired                                     (5,044)          (47,363)
      Note receivable                                 (300)               --

              Net cash used in investing
               activities                          (93,870)         (166,924)

    Cash flows from financing activities:
      Issuance of common stock and other
       equity transactions                           3,900             3,298

              Net cash provided by financing
               activities                            3,900             3,298

    Effect of exchange rate changes on cash          1,613             2,145

              Net increase in cash and cash
               equivalents                         (35,953)           (8,480)

    Cash and cash equivalents at beginning
     of period                                      85,070           122,335

    Cash and cash equivalents at end of period     $49,117           113,855

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Web site: http://www.navteq.com/
http://investor.navteq.com/