MapInfo Corporation recently reported earnings per share of $0.18 for the fourth fiscal quarter ended September 30, 2005, representing the tenth consecutive quarter of year-over-year earnings per share growth for the company. Included in the results is an approximate $0.03 per share benefit due to a decrease in the effective tax rate. For the same period last year the company reported earnings per share of $0.09. Revenues for the fourth quarter grew 24 percent to $40.3 million versus $32.5 million for the same quarter last year. Operating income grew 34 percent to $4.5 million, for an operating margin of 11.2 percent, compared to last year’s operating income of $3.4 million. Net income was $3.9 million compared to net income of $1.8 million for the fourth quarter of fiscal 2004. The effective tax rate was 24 percent in the quarter compared to 34 percent in the third quarter. The decrease in the effective tax rate was primarily a result of increased earnings in lower tax jurisdictions and a non-taxable gain on the sale of a building in Australia. Cash and investments stood at $73.8 million as of September 30, 2005; cash from operations grew by $5.5 million during the quarter and $15.9 million during fiscal 2005. Total deferred revenue grew to $20.9 million at the end of the fourth quarter.
MapInfo’s guidance beginning with the first fiscal 2006 quarter will include an estimate for options based compensation expense as a result of adopting SFAS 123R, Share-Based Payment, which requires companies to recognize equity-based compensation costs as a compensation expense. The company anticipates first quarter revenue in the range of $38.0 million to $39.5 million and the full fiscal year revenue between $166 million and $172 million. In addition, the company anticipates first quarter earnings per share of $0.07 to $0.09 and the fiscal year earnings per share in the range of $0.44 to $0.51. Included in the company’s earnings guidance is an estimate for options based compensation expense of approximately $0.03 and $0.12 per share for the first quarter and fiscal 2006, respectively. For the first quarter it is anticipated that increased costs related to Sarbanes-Oxley will negatively impact results by $0.02 per share as compared to the first quarter of the prior year.