All amounts in this news release are in United States dollars unless otherwise noted.
For the third quarter of 2008, Intermap™ reported total revenue of $12.8 million, compared to $14.3 million in the third quarter of 2007. Intermap’s contract services revenue component contributed $10.3 million and multi-client data license (MCDL) revenue from NEXTMap® datasets contributed $2.5 million of the total revenue.
“We set a new record for data deliveries in a single quarter, comprised of MCDL and contract services. The deliveries were from either our MCDL library or the result of data collected in prior periods. This created invoicing in the quarter totaling $16.8 million. The difference between this billing amount and the revenue recorded during the quarter relates to timing differences resulting from the use of percentage-of-completion accounting on contract services,” stated Brian Bullock, president & CEO of Intermap Technologies. “Total revenue from NEXTMap data sales on a year-to-date basis is nearly double that of 2007. Since its inception, total revenue from NEXTMap licensing has reached more than $42 million, and we have yet to make all of the United States and Western Europe commercially available.”
In July, Intermap announced a follow-on contract to an existing international mapping project worth $4.3 million bringing the combined total of these two contracts to $12.4 million. Additionally, in August and September the Company announced $6.2 million and $2.1 million contracts for international projects using data that had been previously collected by the Company.
Aircraft deployment in the third quarter of 2008 was focused primarily on NEXTMap data collection in the United States while weather conditions remained favorable. This led to the deferral of contract services collection in Asia until later in the fourth quarter.
Sales, general, and administrative (SG&A) expense for the third quarter was $7.8 million (year-to-date $22.9 million), compared to $6.0 million (year-to-date $17.3 million) for the same period in 2007. The majority of this increase is attributable to the costs of personnel in the areas of business development (including automotive), recreational map-enabled GPS applications, insurance risk assessment, sales, and marketing in support of the Company’s MCDL data licensing.
Cost of Services expense totaled $0.8 million for the third quarter of 2008, compared to $3.1 million for the same period in 2007. The $2.3 million decrease in expense was primarily the result of reduced aircraft hours flown on contract services work during the third quarter of 2008, compared to the same period in 2007.
Amortization expense of the MCDL database for the third quarter decreased to $1.3 million (year-to-date increase to $5.2 million) from $1.5 million (year-to-date $3.4 million) during the same period in 2007. The increase on a year-to-date basis was primarily due to increased revenue associated with NEXTMap and an increase in the size of the underlying NEXTMap datasets.
Intermap reported net income of $0.2 million or $0.00 per share in the third quarter, compared to net income of $2.6 million or $0.06 per share for the same period in 2007. Positive earnings in the third quarters of 2007 and 2008 resulted primarily from increased revenues associated with contract services programs. These contract services programs have the capability of producing substantial swings in revenue on a quarter-to-quarter basis. Management generally does not expect profitable quarters during the current investment phase of the NEXTMap build process. However, revenue recognized from large contract services programs may occasionally result in a profitable quarter as is evident in the current reporting period.
For the nine months ended September 30, 2008, Intermap reported consolidated revenue of $27.4 million as compared to $27.6 million during the same period in 2007. Contract services revenue on a year-to-date basis was $18.7 million in 2008, compared to $23.0 million for the same period in 2007. MCDL revenue totaled $8.7 million in 2008, an increase of 87% over the same period in 2007. The increase in MCDL revenue during 2008 is primarily due to the increased availability of NEXTMap data in the United States, Europe, and Indonesia.
Intermap added $0.5 million to its cash position during the quarter. Cash and cash equivalents at September 30, 2008 were $41.6 million, compared to $56.8 million at December 31, 2007. The Company’s working capital was $37.5 million at September 30, 2008, compared to $65.0 million at December 31, 2007.
“We are scheduled to collect at least 3.5
million km2 of NEXTMap data in 2008,”
added Mr. Bullock. “That leaves us
approximately 600,000 km 2