NAVTEQ Reports strong Q4 and fiscal year 2007

Digital map maker NAVTEQ today reported record revenue and operating income for the quarter and fiscal year ended December 31, 2007. The company saw its North American revenue grow steadily, pushed by the surge in the U.S. PND market at the end of the year. However the average selling price of its map has further declined.

NAVTEQ Reports strong Q4 and fiscal year 2007
$853.4 million in 2007
The fourth quarter revenue rose 53% over the same period in 2006 to $276.4 million. Operating income was $83.3 million, a 33% increase over last year's fourth quarter. Net income in the quarter grew 44% over the prior year to $61.9 million.

The full year revenue rose 47% over 2006 to $853.4 million. Full year operating income for 2007 was $226.2 million, a 47% increase over the prior year. Net income for the year grew 57% over the prior year to $173.0 million.

"The performance of our business continued to outpace our forecasts, which enabled us to increase investment in our products and services during the year”, said Judson Green, president and chief executive officer.

Cash and marketable securities totaled $462.8 million at December 31, 2007. Net cash provided by operating activities for the full year was $292.9 million.

Fast growth in Americas region
Revenue from NAVTEQ's Europe, Middle East & Africa (EMEA) region totaled $147.1 million in the quarter, up 29% from the fourth quarter of 2006. For the full year, EMEA revenue was $472.5 million, an increase of 31% over 2006. Excluding the impact of foreign currency rate fluctuation, EMEA revenue for the fourth quarter and full year 2007 grew 17% and 22%, respectively. Revenue for the Americas region was $127.6 million in the quarter, a 92% increase over the fourth quarter of 2006. For the full year, revenue in the Americas region was $373.3 million, representing 73% growth over 2006.

As a result, North America is now representing 46.2% of the revenue against 36.7% one year ago.

Asia Pacific revenue was $1.7 million in the quarter, an increase of 115% over the fourth quarter of 2006. For the full year, Asia Pacific revenue of $7.6 million grew 40% over 2006.

Map price decline
In 2007 Navteq sold 16.4 million map units for portable platforms (PND, PDA and cell phones with onboard maps), the average selling price for portable map unit was $18.73. For in-dash navigation Navteq sold 4.8 million map units at an average price of $85.34.

In the fourth quarter of 2007, the average license fee price for its top ten customers declined 12% against the same quarter last year. It was nine percent between the fourth quarter 2005 and 2006.

Wednesday, February 6th 2008

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