TomTom Reports First Quarter 2012 Results

Revenue

The group generated €233 million revenue for the quarter, a decrease of 12% compared to the same quarter last year (Q1 2011: €265 million) and a 35% decrease sequentially (Q4 2011: €357 million).

The revenue of the Consumer business unit over the past quarter amounted to €126 million which is a €31 million decrease compared to the same quarter of last year (Q1 2011: €157 million). The year on year decrease is the result of the declining PND markets partially compensated by an increase in LIVE Services revenue.

Automotive revenue decreased by €1.8 million or 3.0% to €58 million compared to the same quarter last year (Q1 2011: €60 million). The decline resulted from less hardware sales as some of our Automotive partners face difficult market circumstances. Automotive content revenue increased in the corresponding period. Sequentially revenue increased by 4.6% (Q4 2011: €56 million).

Licensing revenue declined year on year by €1.2 million or 3.5% to €33 million and decreased by €7.6 million sequentially (Q1 2011: €34 million, Q4 2011: €40 million). In the previous year there was a one off positive impact from a royalty adjustment of €4 million from a customer.

Business Solutions revenue increased by €2.0 million or 14% year on year to €16 million (Q1 2011: €14 million) driven by new subscriptions revenue. Sequentially revenue decreased by €2.8 million (Q4 2011: €19 million).

Hardware revenue for the quarter was €135 million across the group, a decrease of 20% year on year (Q1 2011: €169 million) and a decrease of 46% compared to the previous quarter (Q4 2011: €250 million).

Content & Services revenue was €98 million for the quarter compared to €96 million in Q1 2011, an increase of 2.1%. LIVE Services and Automotive were the main contributors to the increase. Sequentially, Content & Services revenue for the quarter decreased by 8.6%, mainly as a result of Licensing’s seasonally lower map sales to PND customers. Content & Services revenue represented 42% of total revenue (Q1 2011: 36%; Q4 2011: 30%).

Gross margin

The gross margin for the group was 49% compared to 53% in the same quarter last year and was up sequentially by 3 percentage points from 46%. The gross result in the quarter was impacted by the product issue. Excluding the estimated cost of rectifying the product issue the gross margin in the quarter would have been 55%.

Operating expenses

Total operating expenses for the quarter amounted to €114 million, a decrease of €8.5 million, or 6.9% compared to the same quarter of last year (Q1 2011: €123 million). The year on year decrease was mainly the result of lower selling, general and administrative (SG&A) and research and development (R&D) expenditure partially offset by an increase in amortisation of technology & databases and marketing expenses. Compared to Q4 2011, which included a €14 million restructuring charge, operating expenses decreased by €41 million or 27% (Q4 2011: €156 million). We are on track to deliver our cost savings target for the full year.

R&D expenses for the quarter were €38 million, a decrease of €3.4 million year on year (Q1 2011: €42 million) and a decrease of €8.4 million compared to the previous quarter (Q4 2011: €47 million and €40 million excluding restructuring). The decrease mainly relates to the timing of development projects.

Amortisation of technology and databases for the quarter was €21 million (Q1 2011: €19 million, Q4 2011: €27 million). The year on year increase is due to the adoption of a shorter estimated useful life of certain internally developed technologies. In Q4 2011 amortisation of technology and databases included an accelerated amortisation of some intangible assets.

Marketing expenses increased by €2.3 million year on year to €13 million (Q1 2011: €10 million). The €7.9 million sequential decrease mainly reflects seasonality (Q4 2011: €21 million).

SG&A expenses for the quarter amounted to €40 million, representing a year on year decrease of 18% and a sequential decrease of 34% (Q4 2011: €61 million and €54 million excluding restructuring; Q1 2011: €49 million).

Financial results

The total interest charge for the quarter was €3.5 million (Q1 2011: €6.0 million, Q4 2011: €3.8 million). Interest expense on the term loan and revolving credit facility for the quarter amounted to €2.7 million. The amortisation of the transaction costs related to the facility amounted to €1.3 million. The interest expense was partially offset by an interest income of €0.5 million on cash balances.

Net result and adjusted EPS

The net result was -€1.5 million compared to €11 million in the prior year, which represents adjusted earnings per share of €0.04 and €0.10 respectively. Without the impact of the product issue the adjusted earnings per share in the quarter would have been €0.09.

Debt financing

On 31 March 2011, the carrying value of our borrowings amounted to €357 million, a decrease of €27 million compared to the previous quarter because we made an early repayment on our borrowings of €28 million (Q4 2011: €384 million). Excluding transaction costs, which are netted against the borrowings, our outstanding borrowings amounted to €360 million (Q4 2011: €388 million).

« Previous Page 1 | 2 | 3 | 4 | 5  Next Page »



Review Article Be the first to review this article
Aldec


Featured Video
Jobs
Pre-silicon Design Verification Engineer for Intel at Santa Clara, California
Senior Java Developer/Architect for EDA Careers at Varies, North Carolina
Product Line Manager for EDA Careers at Multiple, North Carolina
Senior Application Engineer Formal Verification for EDA Careers at California or Austin, California
ASIC Engineer for Amazon at seattle, Washington
Technical Marketing Mmanager for EDA Careers at Fremont, California
Upcoming Events
Si2 AI/ML Winter Workshop at United States - Jan 29, 2021
virtual DATE 2021 at France - Feb 1 - 5, 2021
SEMI Technology Unites Global Summit at United States - Feb 15 - 19, 2021
DVCon U.S. 2021 at Virtual - Mar 1 - 4, 2021
Verific: SystemVerilog & VHDL Parsers
TrueCircuits:



© 2021 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering TechJobsCafe - Technical Jobs and Resumes GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise