NAVTEQ Reports Record First Quarter Revenue and Operating Income
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NAVTEQ Reports Record First Quarter Revenue and Operating Income

CHICAGO, April 30 /PRNewswire-FirstCall/ -- NAVTEQ Corporation (NYSE: NVT), a leading global provider of digital map data for vehicle navigation and location-based solutions, today reported record first quarter revenue and operating income for the quarter ended March 30, 2008.

First quarter revenue rose 40% over the same period in 2007 to $224.5 million. Excluding the impact of foreign currency rate fluctuation, revenue for the first quarter grew 32%. Operating income was $40.8 million, a 6% increase over last year's first quarter. Net income in the quarter grew 9% over the prior year to $32.9 million. Earnings per diluted share in the quarter of $0.32 grew 4% over the same period in 2007.

"We are quite pleased with the company's first quarter revenue growth, particularly in this uncertain economic environment," said Judson Green, president and chief executive officer. "The first quarter was also the beginning of a very important investment year for the company as we continue to develop the next generation products and services our customers demand. As we anticipated, first quarter earnings growth was dampened by a planned increase in spending on capabilities we consider essential to our future success."

Revenue from NAVTEQ's Europe, Middle East & Africa (EMEA) region totaled $114.5 million in the quarter, up 31% from the first quarter of 2007. Excluding the impact of foreign currency rate fluctuation, EMEA revenue for the first quarter grew 17%. Revenue for the Americas region was $108.9 million in the quarter, a 54% increase over the first quarter of 2007. Asia Pacific revenue was $1.1 million in the quarter, a decline of 43% from the first quarter of 2007.

Cash and marketable securities totaled $532.2 million at March 30, 2008. Net cash provided by operating activities for the first quarter was $76.8 million.

Supplementary Information

In lieu of a conference call, management has provided a PowerPoint document containing supplementary information on the results, which is available in the 'News & Events' section of our IR website at investor.navteq.com.

About NAVTEQ

NAVTEQ is a leading provider of comprehensive digital map information for automotive navigation systems, mobile navigation devices, Internet-based mapping applications, and government and business solutions. NAVTEQ creates the digital maps and map content that power navigation and location-based services solutions around the world. The Chicago-based company was founded in 1985 and has over 3,500 employees located in 174 offices in 32 countries.

NAVTEQ is a trademark in the U.S. and other countries. All rights reserved.

This document may include certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts and statements identified by words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" or words of similar meaning. The statements are based on our current beliefs or expectations and are inherently subject to various risks and uncertainties, including those set forth under "Item 1A. Risk Factors" in each of the Company's most recent Annual and Quarterly Reports filed with the Securities and Exchange Commission.

Actual results may differ materially from these expectations due to changes in global political, economic, business, competitive, market and regulatory factors. NAVTEQ does not undertake any obligation to update any forward-looking statements contained in this document.

    (Logo:  http://www.newscom.com/cgi-bin/prnh/20060313/NAVTEQLOGO)



                              NAVTEQ CORPORATION
                 Condensed Consolidated Statements of Income
                    (In thousands, except per share data)

                                                        Quarter Ended
                                                    April 1,      March 30,
                                                     2007           2008
                                                  (Unaudited)    (Unaudited)

    Net revenue:
      Digital map licensing and related
       revenues                                    $150,703        208,837
      Advertising                                     6,228         10,956
      Other                                           3,020          4,657
        Total net revenue                           159,951        224,450

    Operating costs and expenses:
      Database creation and delivery costs           74,255        115,423
      Selling, general, and administrative
       expenses                                      47,353         68,274

        Total operating costs and expenses          121,608        183,697

    Operating income                                 38,343         40,753

      Other income                                    3,787          5,366

    Income before income taxes                       42,130         46,119

      Income tax expense                             11,881         13,236

    Net income                                      $30,249         32,883

    Earnings per share of common stock -
      Basic                                           $0.32           0.33
      Diluted                                         $0.31           0.32

    Weighted average shares of common
     stock outstanding -
      Basic                                          94,802         98,709
      Diluted                                        97,265        101,951



                              NAVTEQ CORPORATION
                    Condensed Consolidated Balance Sheets
                                (In thousands)

                                                  Dec. 31,          March 30,
                                                    2007              2008
                       Assets                                      (Unaudited)
    Current Assets:
       Cash and cash equivalents                  $159,857           231,968
       Short-term marketable securities            226,126           171,710
       Accounts receivable, net                    193,505           141,269
       Deferred income taxes, net                   39,872            36,696
       Prepaid expenses and other
        current assets                              32,752            40,283

            Total current assets                   652,112           621,926

       Property and equipment, net                 111,687           121,379
       Capitalized software development
        costs, net                                  27,084            27,510
       Long-term deferred income taxes,
        net                                        204,840           204,758
       Long-term marketable securities              76,855           128,537
       Goodwill and acquired intangible
        assets, net                                247,956           247,799
       Deposits and other assets                     7,503             9,767

            Total assets                        $1,328,037         1,361,676

            Liabilities and Stockholders' Equity

    Current liabilities:
       Accounts payable                            $32,175            32,224
       Accrued payroll and related
        liabilities                                 48,935            39,413
       Other accrued expenses                       52,362            43,730
       Accrued rebates                              62,279            58,697
       Deferred revenue                             45,582            41,611

            Total current liabilities              241,333           215,675

       Long-term deferred revenue                   45,148            45,885
       Long-term deferred taxes, net                 6,220             6,264
       Other long-term liabilities                  28,762            31,179

            Total liabilities                      321,463           299,003

       Stockholders' equity                      1,006,574         1,062,673

            Total liabilities and
             stockholders' equity               $1,328,037         1,361,676



                              NAVTEQ CORPORATION
               Condensed Consolidated Statements of Cash Flows
                                (In thousands)

                                                      Quarter Ended
                                                April 1,         March 30,
                                                  2007             2008
                                              (Unaudited)       (Unaudited)

    Cash flows from operating activities:
      Net income                                $30,249           32,883
      Adjustments to reconcile net income
       to net cash provided by operating
       activities:
          Depreciation and amortization           9,108           12,437
          Deferred income taxes                     470            4,611
          Stock compensation expense              4,329            5,614
          Provision for doubtful receivables          3            1,156
          Noncash other                               3            2,289
          Changes in operating assets and
           liabilities, net of effects of
            acquisitions                         34,895           17,806

              Net cash provided by
               operating activities              79,057           76,796

    Cash flows from investing activities:
      Acquisition of property and equipment      (6,602)         (14,071)
      Capitalized software development
       costs                                     (5,175)          (4,339)
      Net (purchases) sales of marketable
       securities                               (31,688)           7,211
      Payments for acquisitions, net of
       cash acquired                            (46,368)            (176)

              Net cash used in investing
               activities                       (89,833)         (11,375)

    Cash flows from financing activities:
      Issuance of common stock and other
       equity transactions                        2,233           (2,138)

              Net cash provided by (used
               in) financing activities           2,233           (2,138)

    Effect of exchange rate changes on cash         840            8,828

              Net increase (decrease) in
               cash and cash equivalents         (7,703)          72,111

    Cash and cash equivalents at beginning
     of period                                  122,335          159,857

    Cash and cash equivalents at end of
     period                                    $114,632          231,968

Web site: http://www.navteq.com/