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TomTom Beats 2nd Quarter Forecasts

pocketgpsworld.comTomTom have posted a €19.8 million second quarter profit - a 61% fall compared to the same period last year. Although clearly a sharp decline, this still wasn't as bad as some analysts had expected and TomTom's shares surged on the news.

Group revenue was €368 million for the quarter, an increase on the first quarter's €213 million, but a decrease on last year's quarter 2 of €485 million.

There was a sharp decline in dedicated units as expected.

  • Q2 PND Sales 2009: €276 million representing 75% of group revenue in the quarter

  • Q2 PND Sales 2008: €402 million (83%)

  • Q1 PND Sales 2009: €141 million and (66%)

  • The news of lower PND sales were softened by higher sales in other areas such as in-dash navigation, traffic information, and fleet management.

    TomToms's second quarter operational highlights included TeleAtlas's HD Traffic introduced into mid range PNDs, the start of volume shipments of their first line-fitted car navigation product with Renault and 50% of PNDs sold with IQ Routes technology.

    They also report that operating expenses have been reduced by 18% year-on-year; almost half centred on research and development and marketing. They further increased their recent €60 million cost-cutting exercise to €90 million yesterday.

    TomTom’s Chief Executive Officer, Harold Goddijn acknowledges challenging market conditions, but remains upbeat "In the second quarter we delivered strong profitability and cash generation driven by new products, the expected seasonal uplift in PND sales and tight management of costs and working capital. In recent weeks we have successfully raised capital to substantially strengthen our balance sheet."

    TomTom reports second quarter 2009 results
    Posted by gatorguy6996 on Thu Jul 23, 2009 7:52 pm Reply with quote

    The news that came as a total surprise to me was the very small percentage of sales coming from Live devices. Total worldwide sales to date of 940's, 740's and XL Live's? A paltry 100,000, against TomTom's stated goal of 1 million connected pnd's by year's end. Of course there is still 5 month's to go Rolling Eyes

    Garmin 1695 / 255 / 760 w/MSN - Droid w/Google nav + Navigon - Navigon 8100T - Dakota10 - GPSMap76C - GeoMate Jr.

    Posted by cornz on Fri Jul 24, 2009 3:00 pm Reply with quote

    Oh dear, i wonder if this will spur them onto releasing tomtom7/8 etc for PPC devices. Including those running wm2003 which is easily capable of running any version of tomtom, albeit feature restricted.
    It **must* generate sales.....and income..

    If at first, you dont succeed, skydiving is not for you!!

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