TomTom: weak Q2?

TomTom: weak Q2?
According to Reuters, PND maker TomTom said on Wednesday that shipments and average selling prices increased in the second quarter compared with the first but by less than expected, due to weak economies.

TomTom also stated its gross margin remained strong in the second quarter and it felt comfortable that earnings before interest and tax (EBIT) were in line with market expectations.

"Our outlook for 2009 remains challenging in light of low consumer spending," TomTom said in a statement, reported by Reuters. When announcing their result for the first quarter 2009 last April, TomTom decided not to update its 2009 full year guidance which were set (in February) at 11 to 12 million PND units and revenue of €1.4 billion to €1.6 billion.

On Monday this week shareholders of the Dutch company approved a €359 million rights issue (announced two weeks ago) which was decided to lower TomTom’s debt resulted from last year acquisition of digital map maker Tele Atlas.

Thursday, July 2nd 2009

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