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News Release Details


TomTom Reports first quarter 2006 Results

Apr 25, 2006
Supporting Materials:
First quarter highlights

Compared with Q1 2005

  • Revenue increased by 288% to €256 million
  • 762,000 portable navigation devices shipped, an increase of 606%
  • Gross margin of 35% reflects Q1 promotions to clear inventories of current TomTom GO range
  • Net profit increased by 121% to €31 million
  • Fully diluted EPS improved by €0.14 to €0.27

Compared with Q4 2005:

  • Revenue decreased 11% compared to seasonally strongest quarter
  • Portable navigation devices shipped down 2% compared to seasonally strongest quarter
  • Gross margin of 35% reflects Q1 promotions to clear inventories of current TomTom GO range
  • Operating margin of 20% decreased by 3 percentage points, reflecting the lower gross margin partly offset by reduced operating costs

Operational highlights:

  • Increased European market leadership position
  • Successful product transition completed
  • New TomTom GO range well received by the market
  • Increased distribution presence in North America; to more than 8,500 outlets
  • Launch of fleet management products by TomTom WORK
  • Acquisition of traffic technology company Applied Generics

Outlook 2006
Full year 2006 guidance increased: revenues now expected to be in the range of €1.1 billion to €1.3 billion (previously €1.0 billion to €1.1 billion). We are targeting a gross margin of around 40% of revenue for the full year.

Key figures

(unaudited) Q1 ‘06 Q4 ‘05 change Q1 ‘05 change
(in € millions)          
 
          
Revenue 256 289 -11% 66 288%
Gross profit 89 123 -28% 31 187%
Gross margin 35% 43% 47%
Operating profit 50 67 -25% 18 178%
Operating margin 20% 23% 27%
Net profit 31 48 -35% 14 121%
 
          
EPS – fully diluted (€ per share) 0.27 0.41 -34% 0.13 108%

* numbers and percentages are based on amounts rounded to the nearest million

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