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In a release dated October 28, the company stated:
Third quarter 2009 financial highlights
- Revenue of EUR365 million
- Operating result of EUR70 million, operating margin of 19 percent
- Operating expenses reduced by EUR26 million, 17 percent year on year
- Net cash flow from operating activities of EUR79 million
- Net debt of EUR599 million (Q2 2009: EUR1,006 million)
Third quarter 2009 operational highlights
- Launch of TomTom application for Apple iPhone
- TomTom solution for Fiat Punto Evo launched
- Further roll-out of LIVE Services in Portugal and Belgium
- New PND ranges: TomTom XXL and TomTom Start
- Tele Atlas leadership team fully in place
TomTom's Chief Executive Officer, Harold Goddijn, said, "We delivered strong profitability and cash flow in the third quarter as a result of our continued focus on cost and cash management. At the same time we are broadening our revenue base. In the past twelve months we were able to increase the contribution of non PND revenue from 20 percent to 30 percent of group revenue.'
- Revenue for the group was EUR365 million for the quarter, a slight decrease of 0.8 percent sequentially (Q2 2009: EUR368 million) and a decrease of 15 percent compared with last year (Q3 2008: EUR429 million). The year on year decline reflects the continued impact of the weak economic environment on our business. The rate of year on year revenue decline slowed this quarter.
- The gross margin for the group was at 52 percent, which represents an increase of one percentage point sequentially (Q2 2009: 51 percent) and a decrease of four percentage points compared to the third quarter of last year (Q3 2008: 56 percent).
- In the quarter, total operating expenses amounted to EUR122 million, which represents a decrease of 5.7 percent or EUR7.3 million compared to the second quarter (Q2 2009: EUR129 million). The decrease in operating expenses was the result of reduced costs across all operating expense categories. Year on year pro forma operating expenses decreased by 17 percent for the quarter (Q3 2008: EUR147 million). Operating expenses as a percentage of revenue for the quarter decreased to 33 percent (Q2 2009: 35 percent, Q3 2008: 34 percent).
- Research and development (R&D) expenses for the quarter were EUR31 million, an 8.1 percent decrease compared to the previous quarter (Q2 2009: EUR34 million) and a decrease of 18 percent compared to the R&D expenses for the previous year (Q3 2008: EUR38 million). The decrease is the result of improving efficiency in our map production activities.
- Amortisation of technology and databases for the quarter was EUR19 million (Q2 2009: EUR21 million, Q3 2008: EUR17 million).
- Marketing expenses showed a slight decline for the quarter at EUR21 million (Q2 2009: EUR22 million). The year on year comparison shows a decrease in marketing expenses of 31 percent (Q3 2008: EUR31 million). Total marketing expenses represented 5.8 percent of group revenue, a slight decrease compared to the previous quarter (Q2 2009: 6.0 percent), and a decrease of 1.4 percentage points compared to the same quarter last year (Q3 2008: 7.2 percent).
- Selling, general and administrative (SG&A) expenses for the quarter amounted to EUR46 million, down slightly compared to the previous quarter (Q2 2009: EUR47 million) and by 18 percent compared to the same quarter last year (Q3 2008: EUR56 million). SG&A expenses for the group represented 13 percent of revenue, the same as in the previous quarter.
- Stock compensation expenses for the quarter were EUR3.6 million, down from EUR5.1 million in the previous quarter. The costs in the previous quarter were higher because of share options which have since vested which resulted in lower ongoing costs.
- The operating result for the quarter increased by EUR11 million quarter on quarter to EUR70 million (Q2 2009: EUR59 million). As a percentage of revenue, the operating profit increased by three percentage points to 19 percent (Q2 2009: 16 percent). Year on year the operating profit decreased by EUR23 million (Q3 2008: EUR93 million).
TomTom is a provider of navigation solutions and digital maps.
((Comments on this story may be sent to newsdesk@closeupmedia.com))
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