Last quarter, blockbuster earnings sent shares of NAVTEQ
This quarter, similarly impressive numbers didn't even shove shares of the mapping provider north at all -- the stock stayed stuck just under $77 per share as its pending acquisition by handset maker Nokia
For its part, NAVTEQ still impressed investors with a 51% rise in revenue to $214.8 million. Net income soared as well; up 47% to $39.9 million for the quarter. The higher-than-expected sales helped the company produce operating cash flow of $65.2 million to end the quarter with $459.3 million in cash and marketable securities.
NAVTEQ saw strong demand for mapping data, particularly in the mobile device business. Volume for portable device map units grew dramatically by 136% as the company continued to find its way into more mobile devices. In Europe, personal navigation business was boosted by Nokia's new communicator product, and growth in the U.S. business was anchored by strong sales at Garmin
New customer deals bolstered operations as well. NAVTEQ is now in Microsoft
Beyond the Nokia purchase though, other events overshadowed the outstanding financials as well. Top customer Garmin threw a new factorial into the mapping equation with a $3.3 billion bid over rival TomTom for main NAVTEQ competitor Tele Atlas. Normally, the very idea that Garmin would defect from NAVTEQ and rely on Tele Atlas would strike fear in the hearts of NAVTEQ analysts and investors were it not for the pending Nokia deal.
So even with dramatic events that would normally send a stock flying -- or plunging -- NAVTEQ's stock remains unfazed even while the industry around it is experiencing powerful turbulence. It's nice to see business continuing to expand at a rapid clip but a little depressing that investors can't participate in what should be a bright future for NAVTEQ.
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