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TomTom Sells 80K iPhone Apps

10/28/2009 11:57:42 AM Eastern

Amsterdam
- TomTom said it sold close to 80,000 downloads of its $99 GPS iPhone
application since August and announced third-quarter results.

For the quarter ended Sept. 30, both sales and profit fell
compared with last year although TomTom profits rose 53 percent when compared with
the second quarter this year.

Total profits were the equivalent of $46 million for the quarter
ended Sept. 30, down 47 percent from $86 million for the same quarter last
year, but up from $30 million in profits in the second quarter this year.

Sales totaled $540 million, down 15 percent from $635 million for
the quarter last year and down one percent from the second quarter.

TomTom said portable navigation devices (PNDs) are on track to
reach sales of 17 million in North America and 15 million in Europe
for the full year 2009. PND sales for the quarter in North
America rose three percent to 3.4 million units from 3.3 million
during the period last year. In Europe, PND
third quarter sales were up by 7 percent to 4.1 million units. 

TomTom said it sees the slightly upward trend in unit sales over
last year to continue into the fourth quarter.

The average selling price of a PND was $146, down 27 percent
compared with $201 in the quarter last year, and down 12 percent from $166
during this year's second quarter.

The company noted, however, it continues to diversify beyond PND
sales. "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," said chief
executive Harold Goddijn. This included expansion into automotive navigation
and the release of an iPhone application and an iPhone
kit.
 

Sales for the Tele Atlas subsidiary were $70 million for the
quarter, down eight percent from $77 million for the year-ago quarter, but up
three percent from the second quarter. 

TomTom also claimed it is ahead of schedule to achieve a $133
million savings in operating expenses in 2009 over last year.  Total operating expenses for the quarter were
$180 million, down 5.7 percent compared to the second quarter.

The company reduced its net debt resulting from the purchase of
Tele Atlas to $886 million, down from $1.5 billion.

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