Dutch GPS navigation maker TomTom today reported €2 million loss in the first quarter of 2012 out of a revenue of €233 million, down 12% compared to the same quarter last year (Q1 2011: €265 million).
The company maintained their guidance of full year revenue of around €1.1 billion and adjusted earnings per share of around €0.35.
“The economic headwind in Southern Europe impacted Consumer and Automotive revenue in the quarter,“ said TomTom’s Chief Executive Officer, Harold Goddijn. “We saw consumer discretionary spending decline and OEMs adjusting their production accordingly, which was largely in line with our expectations.“
“Due to a bug in a third party component some of our products stopped functioning properly after 31 March. We released a software update to fix this product issue for our customers and have been working with our partners to deliver a solution for the affected devices in the channel.
TomTom said it took a €13 million provision in the quarter to fix the software issue.
Consumer business
TomTom’s revenue in its consumer division was €126 million, a 20 percent decrease against the same quarter the previous year.
TomTom estimated the market size in Europe for PNDs was 2.0 million units compared to 2.4 million devices in the same quarter of last year. The North American market size was 1.4 million units compared to 2.1 million units last year. the Dutch company estimated their market shares in Europe and North America were fairly flat at 46% and 24% respectively.
The company maintained their guidance of full year revenue of around €1.1 billion and adjusted earnings per share of around €0.35.
“The economic headwind in Southern Europe impacted Consumer and Automotive revenue in the quarter,“ said TomTom’s Chief Executive Officer, Harold Goddijn. “We saw consumer discretionary spending decline and OEMs adjusting their production accordingly, which was largely in line with our expectations.“
“Due to a bug in a third party component some of our products stopped functioning properly after 31 March. We released a software update to fix this product issue for our customers and have been working with our partners to deliver a solution for the affected devices in the channel.
TomTom said it took a €13 million provision in the quarter to fix the software issue.
Consumer business
TomTom’s revenue in its consumer division was €126 million, a 20 percent decrease against the same quarter the previous year.
TomTom estimated the market size in Europe for PNDs was 2.0 million units compared to 2.4 million devices in the same quarter of last year. The North American market size was 1.4 million units compared to 2.1 million units last year. the Dutch company estimated their market shares in Europe and North America were fairly flat at 46% and 24% respectively.
Automotive
the automotive revenue decreased three percent, down to €58 million. it is likely that this result was influenced by weak sales from Renault, TomTom’s largest automotive customer, in the first quarter.
Licensing division
The licensing division also saw its revenue down three percent to €33 million against the same quarter last year. TomTom said that “In the previous year there was a one off positive impact from a royalty adjustment of €4 million from a customer.“
Business Solutions
TomTom’s fleet management solution WEBFLEET’s installed base grew by 36% compared to the first quarter of 2011 to 194,000. Revenue in this division was up 14 percent to €16 million.
the automotive revenue decreased three percent, down to €58 million. it is likely that this result was influenced by weak sales from Renault, TomTom’s largest automotive customer, in the first quarter.
Licensing division
The licensing division also saw its revenue down three percent to €33 million against the same quarter last year. TomTom said that “In the previous year there was a one off positive impact from a royalty adjustment of €4 million from a customer.“
Business Solutions
TomTom’s fleet management solution WEBFLEET’s installed base grew by 36% compared to the first quarter of 2011 to 194,000. Revenue in this division was up 14 percent to €16 million.
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