TomTom profit warning impacting Tele Atlas guidance for the year
The company has also announced: “Our major portable navigation customers have reduced their outlook for 2008 revenues and we expect these reductions to negatively impact our 2008 revenues. Our current plan is to update our 2008 guidance in connection with the release of our first quarter results on April 29, 2008.
On April 8, TomTom issued a profit warning for its first quarter results and reduced its outlook for the full year. TomTom expects to have shipped around 2.0 million PNDs during the first quarter of 2008, generating a revenue of between €260 million and €270 million, lower than in the first quarter of 2007, with an operating margin of “a low single digit percentage”. For the full year, TomTom issued new guidance expecting to achieve revenue of between €1.8 billion and €2.0 billion. TomTom is Tele Atlas’ largest customer accounting for 32% of the Company’s revenue in 2007.
Regarding the transaction with TomTom, “Tele Atlas remains confident that the constructive dialogue with the European Commission will lead to clearance of the proposed transaction” said Tele Atlas press release.