Tele Atlas reports Q1 revenue of €58.8 million

Tele Atlas reports Q1 revenue of €58.8 million
In line with its negative pre-announcement, Tele Atlas today reported €58.8 million revenue for the first quarter of 2008, a decrease of 8% over the same period last year (4% after adjusting for effects in exchange rates).

Alain De Taeye, Chief Executive Officer, said: “Although lower revenues from our customers active in the European portable navigation market and unfavorable exchange rate changes resulted in overall lower revenues, the North American market for portable navigation solutions continued to grow at a fast pace. If the pending TomTom transaction closes, which is, inter alia, subject to obtaining approval from the European Commission, we expect to be in a good position to rapidly introduce a broad range of new products in response to growing market demands.”

EMEA (Europe, Middle East and Africa) revenues for the quarter decreased 15% over the prior year to €37.7 million; “mainly as a result of reductions in inventory levels by our customers’ customers and lower per unit prices”, said Tele Atlas.

Americas’ region revenues for the first quarter decreased 3% from the prior year to €17.5 million, primarily due to changes in the currency exchange rate. Americas revenues grew 10% after adjusting for the effect of currency exchange rates changes. Asia Pacific (APAC) revenues for the quarter increased 128% over the prior year to €3.6 million.

Portable navigation
Revenues in the portable navigation segment declined 14% after adjusting for a €1.1 million effect of currency exchange rate changes. First quarter segment revenues in 2008 reflect map license fees from the sale of 2.9 million portable navigation units during the quarter as compared to 2.3 million units in the same period during the previous year.

EMEA portable navigation revenues for the quarter were €18.6 million, a decrease of 32% over the same period last year. Americas portable navigation revenues were €7.6 million, an increase of 52% over the same period last year (a 73% increase, excluding exchange rate effect). The difference between portable navigation unit and revenue growth rates resulted from lower average map prices as compared to the same period in 2007.

Wireless and Internet revenues
Revenues in the other segments, consisting of consumer wireless and Internet segments, increased by 71% to €7.7 million compared to €4.5 million during the same period last year, principally as a result of strong growth in the consumer wireless segment in the EMEA region.

Revenues in the automotive segment for the quarter decreased 6% from the same quarter the prior year to €10.8 million. After adjusting for the effects of changes, revenues decreased by 3%. Worldwide, the number of map licenses sold by Tele Atlas in the automotive segment remained flat at 0.5 million units, compared to the same period last year. EMEA revenues in this segment was €7.4 million, a 10% decrease from the same period in the prior year.

“This change was primarily the result of the loss of the Volkswagen midline business by one of our customers”, stated Tele Atlas.

Americas automotive navigation revenues increased by 2% to €2.8 million. After adjustment for the effects of changes in exchange rates, the increase in Americas automotive revenue was 16%.

Tuesday, April 29th 2008

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