AutoNavi: 3Q 2010 revenues up 47.6%

AutoNavi: 3Q 2010 revenues up 47.6%
Chinese digital map provider AutoNavi announced yesterday their financial results for the third quarter 2010 with Net revenues of $24.0 million, an increase of 47.6% year-over-year and an operating income of $7.7 million, an increase of 16.3% year-over-year.

The operating margin, was 32.0% in the third quarter of 2010, compared to 40.6% in the year-ago period and 32.6% in the previous quarter.

"We delivered a strong set of results in the third quarter driven by exceptional sales in our automotive navigation business with net revenues for this business line increasing by 62.6% year-over-year," said Mr. Congwu Cheng, AutoNavi's chief executive officer.

"We remain highly optimistic about the prospects of our wireless and internet business line, as we are well-positioned to identify and take advantage of new opportunities in this emerging market. This past quarter also marked the beginning of a long-term, strategic partnership with TomTom - one which will allow us to enhance our global presence as a leading provider of digital map content and navigation solutions in China."

Automotive Navigation
Net revenues from the automotive navigation market in the third quarter of 2010 were $17.8 million, an increase of 62.6% year-over-year and 7.1% sequentially. The increases were mainly due to increases in the number of licenses for in-dash navigation systems.

Public Sector and Enterprise Applications
Net revenues from the public sector and enterprise applications segment were $3.3 million, a decrease of 14.7% year-over-year and an increase of 60.4% sequentially.

Autonavi said that “the year-over-year decrease in revenues was mainly due to a decrease in revenues from the aerial photogrammetry business, partially offset by an increase in revenues from the enterprise solutions business.”

Wireless and Internet Location-based Solutions

Net revenues from the wireless and Internet location-based solutions business were $2.6 million, an increase of 87.7% year-over-year and 2.4% sequentially. The increase in revenues derived from pre-installing the Company's navigation solutions on certain mobile phone models as well as from the Internet map application business.

The Company estimates that its net revenues for the full year of 2010 will be approximately $80 million, an increase of approximately 40% on a year-over-year basis.

Thursday, November 18th 2010

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