AutoNavi Skyrocketing Q1 2011: Revenues Up 53.2%, Profit Rises 395.7%

No doubt it has been a great quarter for Chinese map and location-based services supplier AutoNavi. Net revenues in the first quarter ended March 31, 2011 were $25.4 million, an increase of 53.2% year-over-year. and operating income was $8.5 million, growing 395.7% year-over-year.
Net cash provided by operating activities was $7.1 million in the first quarter of 2011. As of March 31, 2011, the Company had $174.1 million in cash and term deposits.

“In the first quarter, we were particularly pleased to see the growth of AutoNavi's wireless and Internet business, both year-over-year and sequentially,“ said AutoNavi’s CEO Congwu Cheng. “We also made tremendous progress expanding from a pure B2B model to a combined B2B and B2C model by further enlarging our already rapidly growing user base and strengthening the branding around our most popular B2C products, including our mobile map application, our pre-installed and downloadable mobile navigation application, and our Map API service."

Automotive Navigation
Net revenues from the automotive navigation market in the first quarter of 2011 were $19.1 million, an increase of 56.0% year-over-year and an increase of 14.7% sequentially. According to AutoNavi the growth was mainly due to an increase in the number of copies of digital map data licensed for use in in-dash navigation systems, which is directly linked to the number of vehicles sold in China equipped with these systems.

Wireless and Internet LBS
Net revenues from the wireless and Internet location-based solutions business in the first quarter of 2011 were $3.7 million, an increase of 109.1% year-over-year and 39.2% sequentially. The growth resulted from the pre-installation of the AutoNavi’s navigation solutions on certain mobile phones.

Public Sector and Enterprise
Net revenues from the public sector and enterprise applications market in the first quarter of 2011 were $2.4 million, an increase of 4.9% year-over-year and a decrease of 24.9% sequentially. The quarter-over-quarter decrease was primarily the result of a decline in 3-D modeling applications projects and aerial photogrammetry projects, which were mainly due to flight schedule delays caused by unfavorable weather conditions during the first quarter of 2011. 

The Company maintains its full year 2011 net revenue guidance of approximately $117 million to $120 million, an increase of approximately 36% to 40% over fiscal year 2010.