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TomTom: Q3 PND Share Up

10/24/2011 12:16:00 PM Eastern

Amsterdam, The Netherlands - North
American sales of portable navigation devices (PNDs) slid 27.6 percent in the
third quarter to 2.1 million units and 19 percent to 6.6 million for the
year-to-date, but TomTom boosted its North American market share sequentially
to 25 percent from a second-quarter 21 percent, the company said in its latest
financial statement.

The company first-quarter share was
25 percent.

The North American PND market slid
19 percent in the first quarter and 27.3 percent in the second quarter, the
company said in previous financial statements.

TomTom also announced that, as
previously planned, it began in the third quarter to restructure "to focus our
organization on the areas where we see the greatest potential for growth, of
which automotive [OEM] and content and services are clear examples."

The restructuring includes a workforce
reduction that "will only be partially achieved through attrition," the company
said.

Consumer products - mainly PNDs - accounted
for 66.8 percent of TomTom's third-quarter global revenue, and revenues from sales
of those products fell 23 percent to 225 million euros in the quarter following
first- and second-quarter declines of 16 percent and 23 percent, respectively.

Revenues from OEM
navigation-equipment sales to automakers and business, however, were up as were
licensing revenues, so total company revenue fell only 10 percent in the
quarter to 336.4 million euros ($465.7 million) for the quarter and down 9.8
percent for the year-to-date to 915.8 million euros ($1.27 billion). The dollar
figures are based on a conversion rate of 1 euro equaling $1.38.

Despite the revenue decline, the
company posted a third-quarter operating profit of 40.7 million euros ($56.3
million) and a net profit of 28.1 million euros ($38.9 million). However, because
of a large second-quarter one-time impairment charge on goodwill and other
intangible assets of 512 million euros ($708.8 million), the company posted a
year-to-date operating loss of 435.1 million euros ($602.4 million) and a net
loss of 450.7 million euros ($624 million).

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