TomTom Reports first quarter 2007 Results
First quarter financial highlights
Compared with Q1 2006
• Revenue increased by 16% to €296 million
• Revenue in North America increased by 121%
• 1.3 million portable navigation devices (PNDs) shipped, up 75%
• Gross margin increased by 5 percentage points to 40%
• Operating margin of 19.1% compared with 19.6%
• Net profit increased by 42% to €44 million
• Fully diluted EPS increased by 37% to €0.37
Compared with Q4 2006
• Revenue decreased by 38% in line with seasonality in the PND market
• PNDs shipped decreased by 31%
• Gross margin decreased by 6 percentage points
• Operating margin decreased by 7 percentage points
First quarter operational highlights
• European PND market continues to grow strongly
• Accelerating growth in the North American PND market
• Strengthening of European and North American market shares to 52% and 25% respectively (compares to 50% and 20% at the end of 2006)
• Continued strong cash generation from operations of €98 million
• Milestone of 1 million registered TomTom HOME users passed
Outlook 2007
We re-iterate our full year guidance. We estimate that we will deliver revenues of between €1.6 billion and €1.8 billion and we continue to target a gross margin of around 40% of revenue and an operating margin of around 20% of revenue.
Key figures
| (unaudited) (in € millions) | Q1 ‘07 | Q1 ‘06 | change | Q4 ‘06 | ||
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| Revenue | 296 | 256 | 16% | 478 | ||
| Gross profit | 118 | 89 | 33% | 218 | ||
| Gross margin | 40.0% | 34.7% | 45.7% | |||
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| Operating profit | 57 | 50 | 14% | 126 | ||
| Operating margin | 19.1% | 19.6% | 26.3% | |||
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| Net profit | 44 | 31 | 42% | 80 | ||
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| EPS – fully diluted (€ per share) | .37 | .27 | 37% | .68 |
* percentages are based on rounded figures
View the full View the full First quarter results release 2007 in PDF format (137KB)