CALGARY, Alberta—(BUSINESS WIRE)—February 21, 2008— Intermap Technologies Corp. ("Intermap" or the "Company"), today reported financial results for the fourth quarter and year ended December 31, 2007. A conference call will be held tomorrow at 10:00 am Eastern time to discuss the results.
All amounts in this news release are in U.S. dollars unless
For 2007, Intermap(TM) reported a 55% increase in total revenue to
$33.8 million, as compared $21.8 million in 2006. Intermap's contract
services revenue component grew 86% to $28.2 million and multi-client
data licenses (MCDL) contributed $5.6 million, compared to $6.7
million in 2006. Approximately 80% of the MCDL revenue was associated
with the Company's NEXTMap(R) USA program. NEXTMap(R) Britain
accounted for 14% of MCDL revenues.
"Contract services revenue during the year was driven by several
mapping contracts in Southeast Asia and a $12.5 million governmental
contract announced during the third quarter," stated Brian Bullock,
president & CEO of Intermap. "As of December 31, 2007, we had also
received over $8.8 million in signed contract services work where
revenue will be recognized throughout 2008. In addition, we expect to
receive new contracts during the year from several government entities
around the world. The cash generated from these contracts helps
support our ongoing investment in the NEXTMap(R) databases which
reached record collection levels in 2007. We have now collected 60% of
the U.S. and 63% of our Western European program. Germany, England,
Wales, and Scotland are now commercially available."
NEXTMap USA sales during the year included two large county sales
in California and additional federal government sales for specified
areas in the mainland U.S. and Hawaii. Intermap also received a $1.3
million contract from the National Geospatial-Intelligence Agency
(NGA) for NEXTMap USA data in the Gulf Coast areas of Alabama,
Florida, Louisiana, and Mississippi. To date, the NGA has licensed
$6.1 million of multi-client data licenses from the NEXTMap database.
Cost of services expense for the year was $8.3 million compared to
$7.9 million in 2006, reflecting the costs associated with the
increased contract services work and with record data collection
levels during the year.
Sales, general and administrative expenses for 2007 were $23.9
million compared to $19.0 million in 2006. The majority of this
increase was attributed to investment in the areas of business
development, sales, and marketing in support of automotive, personal
navigation device (PND), and insurance risk assessment initiatives for
the NEXTMap USA and NEXTMap(R) Europe programs.
Amortization expense of the MCDL database increased to $4.5
million from $3.1 million in 2006, primarily due to an increase in
amortization associated with the NEXTMap USA dataset, which had
approximately $16.7 million of additional costs capitalized to the
asset during the year ended December 31, 2007.
After interest income of $2.3 million and a foreign exchange gain
of $0.9 million for the year, Intermap reported a reduced net loss of
$8.9 million, or ($0.22) per share, as compared to a net loss of $11.0
million, or ($0.30) per share, in 2006.
For Intermap's fourth quarter ended December 31, 2007, total
revenues were $6.2 million compared to $6.6 million for the same
period in 2006. NEXTMap revenue totaled $0.9 million for the fourth
quarter of 2007 compared to $1.2 million for the same period in 2006.
Fourth-quarter cost of services totaled $1.4 million in 2007
compared with $2.6 million in the fourth quarter of 2006, reflecting a
decrease in the costs to operate aircraft and in the processing
requirements for data related to contract services work.
Intermap reported a net loss for the fourth quarter of 2007 of
$4.4 million, or ($0.08) per share, as compared to a net loss of $3.7
million, or ($0.10) per share for the fourth quarter of 2006.
Cash and cash equivalents at December 31, 2007 were $56.8 million
as compared to $48.2 million at December 31, 2006. The Company's
working capital was $65.0 million compared with $51.0 million at
December 31, 2006. In the fourth quarter of 2007, outstanding warrants
from a March 2005 private placement were exercised with proceeds to
the Company totaling $10.6 million.
NEXTMap USA is the Company's largest project that includes terrain
elevation and imagery data accurate to one-meter or better, covering
nearly eight million square kilometers of the United States. In 2007,
Intermap collected a total of 2.7 million square kilometers of data
for its NEXTMap USA project. Of the total amount collected in 2007,
approximately 690,000 square kilometers was collected in the fourth
quarter. The total collected since the inception of the project is 4.8
million square kilometers, or 60% of the continental United States and
At the end of 2007, the NEXTMap USA project had data available off
the shelf for the entire states of California, Florida, Mississippi
and Hawaii. Partial datasets are available for Arizona, Louisiana,
Michigan, North Dakota, New Mexico, Oklahoma, Oregon, Texas, West
Virginia, and Wyoming.
The Company expects to have the collection portion of the NEXTMap
USA project completed by the end of the second quarter in 2009.
Processing of the NEXTMap USA map data will take an additional two
quarters following the collection of the data. Through December 31,
2007, total cumulative license revenue for NEXTMap USA data has grown
to approximately $12.0 million. During the year, the California
High-Speed Rail Authority (CHSRA) purchased NEXTMap datasets to
support preliminary environmental planning and engineering work on the
design of a high-speed rail system linking northern and southern
NEXTMap Europe calls for the mapping of 17 European countries
including Austria, Belgium, Czech Republic, Denmark, England, France,
Germany, Irish Republic, Italy, Luxembourg, Netherlands, Northern
Ireland, Portugal, Scotland, Spain, Switzerland, and Wales. Once
completed, these datasets will be the most accurate 3D digital maps of
Europe in existence.
Data collection for the NEXTMap Europe project in 2007 was 840,000
square kilometers and includes 241,000 square kilometers collected in
the fourth quarter. This brings the total data collected since the
inception of the project to approximately 1.5 million square
kilometers or 63% of the total project. NEXTMap Europe now includes
the entire countries of England, Germany, Scotland, and Wales. The
entire NEXTMap Europe dataset is expected to be completed in the
second quarter of 2009.
NEXTMap Europe - Germany
Following commercial availability of Germany, Intermap signed an
agreement to allow GAF AG, an international geo-information technology
company located in Munich, to distribute NEXTMap data throughout
Germany and the rest of Europe. GAF is one of the most important
one-stop-shops in Germany for commercial remote sensing data and a
variety of geospatial products.
In addition, in early 2008, E-Plus Mobilfunk GmbH, Germany's
third-largest wireless network provider, purchased NEXTMap Germany
datasets to determine precise mobile phone tower placements, accurate
predictions of field strength and coverage, and optimized antennae
locations and characteristics using Intermap's 3D digital mapping
data. This application of NEXTMap data results in a higher level of
service for mobile phone customers. "As individual countries are
completed in Europe, we expect further revenue opportunities to
close," stated Mr. Bullock.
Personal Navigation Devices (PNDs)
In the third quarter of 2007, Intermap launched AccuTerra(TM), a
product that provides existing outdoor GPS and personal navigation
device (PND) products with detailed maps, land coverage, digital
terrain data and off-road points-of-interest (POI). The Company has no
plans to build a PND or GPS device; rather it will offer AccuTerra
recreational content under license to manufacturers of these devices.
Intermap has entered into relationships with two of the top three
crossover PND OEMs, announcing in February 2008 an agreement to offer
Magellan customers access to Intermap's AccuTerra recreational content
- including clear markings for public and private property - for a new
line of Magellan GPS devices. AccuTerra will be available for purchase
directly from the Magellan Web site. "Our customers can now transform
their recreational experience with the most feature-rich map data
available on the market today - all in one powerful device," said
Christian Bubenheim, vice president of product marketing for Magellan.
Intermap has also announced a similar relationship with Bushnell
Outdoor Products. Bushnell users will be able to access Intermap's
AccuTerra recreational map data for the contiguous 48 states and
Both companies are expected to release devices that leverage
AccuTerra data in 2008.
Intermap is developing a 3D version of AccuTerra to allow users to
visualize trails and other features in the context of the natural
terrain where they exist - all in three dimensions. "We are excited
about our new PND relationships and optimistic about the increasing
interest in our data," said Mr. Bullock. "Market acceptance of
AccuTerra has exceeded our expectations. Intermap is in discussions
with other PND manufacturers also looking to enter the GPS crossover
and 3D PND segment. The evolution of PNDs to 3D will improve the user
experience for off-road vehicles, hikers, hunters, fisherman, skiers,
and mountaineers. Rapidly increasing development in 3D visualization
is driving consumer awareness and market adoption."