NAVTEQ Reports Record Third Quarter Revenue and Operating Income

CHICAGO, Oct. 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 third quarter revenue and operating income for the quarter ended September 30, 2007.

Revenue in the quarter rose 51% over the third quarter of 2006 to $214.8 million. Operating income was $50.5 million, compared to $37.0 million in last year's third quarter. Net income was $39.9 million, compared to $27.1 million in the prior year's third quarter. Earnings per diluted share were $0.40, compared to $0.28 in the third quarter of 2006.

For the first nine months of 2007, revenue was $577.0 million, which represented growth of 44% over the first nine months of 2006. Year-to-date operating income was $142.9 million, compared to $90.9 million for the same period in 2006. Net income though the first three quarters was $111.0 million, compared to $67.0 million for the same period in 2006. Year-to-date diluted earnings per share were $1.12, compared to $0.70 for the first nine months of 2006.

"We are quite pleased with our strong third quarter and year-to-date results," said Judson Green, president and chief executive officer of NAVTEQ. "The third quarter began an important investment period for the company, which is expected to continue in the fourth quarter. The additional investment is made possible in part by the tremendous growth we have seen in maps for portable devices and the steady performance of our in-dash business."

Revenue from NAVTEQ's Europe, Middle East & Africa (EMEA) operations totaled $120.5 million in the quarter, up 42% from $85.2 million in the third quarter of 2006. The average U.S. dollar/euro exchange rate in the third quarter was $1.37, compared to $1.27 in the comparable period last year. Americas revenue was $93.1 million in the quarter, a 66% increase over the $56.1 million posted in the third quarter of 2006. Asia Pacific revenue, which is derived from the company's Korean subsidiary, was $1.2 million.

Cash and marketable securities totaled $459.3 million at September 30, 2007. Net cash provided by operating activities for the first nine months of 2007 was $228.7 million.

Business Outlook

The following forward-looking statements reflect NAVTEQ management's expectations as of October 31, 2007. Management is revising its full-year outlook primarily as a result of the company's strong year-to-date performance, increased expectations for growth in maps for portable devices, and the favorable impact of the stronger euro. For the fiscal year 2007, NAVTEQ expects revenue of $815 million to $825 million and earnings per diluted share of $1.50 to $1.55. These ranges assume the following on a full year basis: an effective worldwide tax rate of approximately 28%, an average U.S. dollar/euro exchange rate of $1.36, and average diluted shares outstanding of approximately 100 million.

Supplementary Information

In lieu of a conference call, management has provided a PowerPoint document containing supplementary information on the results, which is available in the 'News & Events' section of our IR website at investor.navteq.com.

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 most recent Annual and Quarterly Reports 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.

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

                                      Quarter Ended     Nine Months Ended
                                    Oct. 1,  Sept. 30,  Oct. 1,   Sept. 30,
                                     2006       2007     2006       2007
                                                  (Unaudited)
    Net revenue:
      Digital map licensing and
       related revenues            $139,107   196,798  $390,634   530,769
      Advertising                         -    13,155         -    34,948
      Other                           3,551     4,822    10,294    11,313
        Total net revenue           142,658   214,775   400,928   577,030

    Operating costs and expenses:
      Database creation and
       delivery costs                69,397   105,316   197,934   273,834
      Selling, general, and
       administrative expenses       36,217    58,967   112,101   160,331

        Total operating costs
         and expenses               105,614   164,283   310,035   434,165

    Operating income                 37,044    50,492    90,893   142,865

      Other income                           2,925          4,387          7,293        12,215

        Income  before  income  taxes              39,969        54,879        98,186      155,080

            Income  tax  expense                          12,890        14,984        31,665        44,042

        Net  income  before  cumulative
          effect  of  change  in
          accounting  principle                        27,079        39,895        66,521      111,038

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

        Net  income                                            $27,079        39,895      $67,027      111,038

        Earnings  per  share  of  common
          stock  before  cumulative  effect
          of  change  in  accounting
          principle  -
            Basic                                                      $0.29            0.41          $0.72            1.15
            Diluted                                                  $0.28            0.40          $0.70            1.12

        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                                                      $0.29            0.41          $0.72            1.15
            Diluted                                                  $0.28            0.40          $0.70            1.12

        Weighted  average  shares  of
          common  stock  outstanding  -
            Basic                                                    93,293        98,277        92,884        96,965
            Diluted                                                95,718        100,964      95,668        99,462



                                                                NAVTEQ  CORPORATION
                                            Condensed  Consolidated  Balance  Sheets
                                                                    (In  thousands)

                                                                                                        Dec.  31,            Sept.  30,
                                                                                                            2006                      2007
                                                                                                                                  (Unaudited)
                                                              Assets
        Current  assets:
            Cash  and  cash  equivalents                                          $122,335                162,954
            Short-term  marketable  securities                              137,163                228,627
            Accounts  receivable,  net                                              126,081                130,886
            Deferred  income  taxes,  net                                              9,232                  19,611
            Prepaid  expenses  and  other  current  assets              17,744                  20,905

                Total  current  assets                                                  412,555                562,983

        Property  and  equipment,  net                                              27,462                101,439
        Capitalized  software  development  costs,  net              18,844                  26,062
        Long-term  deferred  income  taxes,  net                          187,391                236,746
        Long-term  marketable  securities                                      63,033                  67,673
        Goodwill  and  acquired  intangible  assets,  net            72,814                206,487
        Deposits  and  other  assets                                                  12,602                    3,593

                Total  assets                                                                $794,701            1,204,983

                            Liabilities  and  Stockholders'  Equity

        Current  liabilities:
            Accounts  payable                                                              $22,874                  36,269
            Accrued  payroll  and  related  liabilities                  33,571                  40,088
            Other  accrued  expenses                                                    40,327                  51,065
            Deferred  revenue                                                                43,639                  69,978

                Total  current  liabilities                                        140,411                197,400

        Long-term  deferred  revenue                                                  2,874                  45,107
        Other  long-term  liabilities                                                2,035                  27,462

                Total  liabilities                                                        145,320                269,969

        Stockholders'  equity                                                          649,381                935,014

                Total  liabilities  and  stockholders'  equity    $794,701            1,204,983



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

                                                                                                              Nine  Months  Ended
                                                                                                          Oct.  1,              Sept.  30,
                                                                                                            2006                      2007
                                                                                                                    (Unaudited)

        Cash  flows  from  operating  activities:
            Net  income                                                                          $67,027                111,038
            Adjustments  to  reconcile  net  income  to
              net  cash  provided  by  operating  activities:
                Depreciation  and  amortization                                  21,954                  30,985
                Deferred  income  taxes                                                    6,497                  (4,058)
                Stock  compensation  expense                                        11,197                  14,942
                Cumulative  effect  of  change  in
                  accounting  principle                                                      (506)                          -
                Provision  for  doubtful  receivables                          1,605                    3,035
                Noncash  other                                                                        990                        170
                Changes  in  operating  assets  and
                  liabilities,  net  of  effects  of
                  acquisitions                                                                (45,404)                72,618

                    Net  cash  provided  by  operating
                      activities                                                                  63,360                228,730

        Cash  flows  from  investing  activities:
            Acquisition  of  property  and  equipment                    (10,305)              (60,172)
            Capitalized  software  development  costs                    (6,332)              (16,201)
            Net  purchases  of  marketable  securities                  (78,604)              (91,951)
            Payments  for  acquisitions,  net  of  cash
              acquired                                                                              (5,044)              (47,468)
            Note  receivable                                                                      (300)                          -

                    Net  cash  used  in  investing  activities          (100,585)            (215,792)

        Cash  flows  from  financing  activities:
            Issuance  of  common  stock  and  other  equity
              transactions                                                                      16,841                  19,859

                    Net  cash  provided  by  financing  activities      16,841                  19,859

        Effect  of  exchange  rate  changes  on  cash                        1,717                    7,822

                    Net  increase  (decrease)  in  cash  and
                      cash  equivalents                                                    (18,667)                40,619

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

        Cash  and  cash  equivalents  at  end  of  period              $66,403                162,954

 

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




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