Chicago, USA, 25 October 2006 – NAVTEQ Corporation, a global provider of digital map data for vehicle navigation and location-based solutions, today reported record third quarter revenue for the quarter ended October 1, 2006.
Revenue in the quarter rose 16% over the third quarter of 2005 to $142.7 million. Operating income grew 22% over the year-ago period to $37.0 million. Net income in the quarter was $27.1 million, compared to $101.1 million in the prior year’s third quarter. Diluted earnings per share for the quarter were $0.28, compared to $1.07 in the prior year’s third quarter.
For the first nine months of 2006, revenue was $400.9 million, which represented growth of 14% over the same period in 2005. Year-to-date operating income decreased 2% to $90.9 million. Net income for the first nine months of 2006 decreased to $67.0 million, compared to $143.2 million for the same period in 2005. Year-to-date diluted earnings per share were $0.70, compared to $1.52 for the first nine months of 2005.
Last year’s net income and diluted earnings per share for both the third quarter and the first nine months were increased significantly due in large part to the recording of a net income tax benefit of $80.6 million, or $0.85 per diluted share, primarily related to the reversal of a valuation allowance on deferred tax assets associated with net operating loss and deferred interest carry forwards.
“We are pleased with our third quarter results given the challenges we have faced in 2006,” said Judson Green, President and Chief Executive Officer of NAVTEQ.
Revenue from NAVTEQ’s Europe, Middle East & Africa (EMEA) operations totaled $85.2 million in the quarter, up 10% from the third quarter of 2005. The average U.S. dollar/Euro exchange rate in the second quarter was $1.27, compared to $1.22 in the comparable period last year. Americas revenue was $56.1 million in the quarter, a 31% increase over the $42.7 million posted in the third quarter of 2005. Asia Pacific revenue, principally derived from the company’s Picture Map International subsidiary in South Korea acquired in July 2005, was $1.4 million, compared to $3.1 million in the prior year. Cash and marketable securities totaled $278.7 million at October 1, 2006. Net cash provided by operating activities for the first nine months of 2006 was $62.6 million.