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.
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.
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.
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.
(Logo: http://www.newscom.com/cgi-bin/prnh/20060313/NAVTEQLOGO ) 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/