NAVTEQ Reports Record First Quarter 2007 Operating Results

CHICAGO, May 1  /PRNewswire-FirstCall/ -- NAVTEQ Corporation, a leading global provider of digital maps for vehicle navigation and location-based solutions, today reported record revenue and operating income for the first quarter ended April 1, 2007.

Revenue in the quarter rose 31% over the first quarter of 2006 to $160.0 million.  Operating income grew 85% over the prior year to $38.3 million.  Net income was up 87% over last year's first quarter to $30.2 million.   Earnings per diluted share grew 84% to $0.31, compared to $0.17 in the prior year's quarter.

"The business is performing very well and we see positive signs for the remainder of the year," said Judson Green, President and Chief Executive Officer.  "In terms of our key accomplishments, we closed on our acquisition of Traffic.com, secured new business with a number of in-dash and portable customers, and released our first Thailand map, which marked our 60th country of coverage."

NAVTEQ revenue from the Europe, Middle East & Africa (EMEA) region totaled $87.3 million in the quarter, up 14% from the first quarter of 2006. Excluding the impact of foreign currency rate fluctuation, EMEA revenue for the first quarter grew 5%.  Revenue for the Americas region was $70.8 million in the quarter, a 61% increase over the first quarter of 2006.  Asia Pacific revenue was $1.9 million compared to $1.8 million in last year's first quarter.

Cash and marketable securities totaled $347.5 million at April 1, 2007. Net cash provided by operating activities for the first quarter of 2007 was $79.1 million.

Business Outlook

The following forward-looking statements reflect NAVTEQ management's expectations as of May 1, 2007.  For the fiscal year 2007, NAVTEQ reaffirms its previously issued annual guidance, which was provided on February 8, 2007. NAVTEQ expects revenue in the range of $720 million to $750 million and earnings per diluted share of $1.20 to $1.26, assuming an average annual U.S. Dollar/Euro exchange rate of $1.27 and an effective tax rate of 28-29%.

Earnings Call Information

The information for the company's earnings release conference call is as follows:

  When:    Tuesday, May 1, 2007 at 5:00 PM ET
  Where:   http://investor.navteq.com/
  How:     Log on to the web at the URL above or call to listen in at
           866.356.4281 (North America) or 617.597.5395 (international),
           passcode 42287945
  Contact: 



The company will provide a telephone replay of the conference call at 888-286-8010 (North America) or 617-801-6888 (international), passcode 91010598.  The telephone replay will be accessible from 7:00 PM ET Tuesday, May 1, 2007 through 11:59 PM ET on Tuesday, May 8, 2007.  An on-demand replay of the conference call will also be available online at investor.navteq.com until June 1, 2007.

About NAVTEQ

NAVTEQ is a leading provider of comprehensive digital map information for automotive navigation systems, mobile navigation devices, Internet-based mapping applications, and government and business solutions. NAVTEQ creates the digital maps and map content that power navigation and location-based services solutions around the world. The Chicago-based company was founded in 1985 and has approximately 2,800 employees located in 167 offices in 28 countries.

NAVTEQ is a trademark in the U.S. and other countries. All rights reserved.

This document may include certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts and statements identified by words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" or words of similar meaning.  The statements are based on our current beliefs or expectations and are inherently subject to various risks and uncertainties, including those set forth under "Item 1A.  Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2006, as filed with the Securities and Exchange Commission.

Actual results may differ materially from these expectations due to changes in global political, economic, business, competitive, market and regulatory factors. NAVTEQ does not undertake any obligation to update any forward-looking statements contained in this document.

                            NAVTEQ CORPORATION
               Condensed Consolidated Statements of Income
                  (In thousands, except per share data)

                                                        Quarter Ended
                                                 April 2,         April 1,
                                                     2006             2007
                                                         (Unaudited)
  Net revenue:
    Digital map licensing and related
     revenues                                    $118,465          150,703
    Advertising                                        --            6,227
    Other                                           3,860            3,021
      Total net revenue                           122,325          159,951

  Operating costs and expenses:
    Database creation and delivery costs           62,851           74,255
    Selling, general, and administrative
     expenses                                      38,751           47,353

      Total operating costs and expenses          101,602          121,608

  Operating income                                 20,723           38,343

    Other income                                    2,334            3,787

  Income before income taxes                       23,057           42,130

    Income tax expense                              7,379           11,881

  Net income before cumulative effect of
   change in accounting principle                  15,678           30,249

    Cumulative effect of change in
     accounting principle, net of tax                 506               --

  Net income                                      $16,184           30,249

  Earnings per share of common stock
   before cumulative effect of change
   in accounting principle -
     Basic                                          $0.17            $0.32
     Diluted                                        $0.16            $0.31

  Cumulative effect of change in
   accounting principle per share of
   common stock -
     Basic                                          $0.01              $--
     Diluted                                        $0.01              $--

  Earnings per share of common stock -
     Basic                                          $0.18            $0.32
     Diluted                                        $0.17            $0.31




                            NAVTEQ CORPORATION
                  Condensed Consolidated Balance Sheets
                              (In thousands)

                                                Dec. 31,          April 1,
                                                   2006              2007
                                                        (Unaudited)
                                  Assets
  Current assets:
    Cash and cash equivalents                   $122,335           114,632
    Short-term marketable securities             137,163           188,042
    Accounts receivable, net                     126,081           109,304
    Deferred income taxes, net                     9,232            16,338
    Prepaid expenses and other current
     assets                                       17,744            18,830

              Total current assets               412,555           447,146

  Property and equipment, net                     27,462            56,439
  Capitalized software development
   costs, net                                     18,844            20,877
  Long-term deferred income taxes, net           187,391           231,313
  Long-term marketable securities                 63,033            44,795
  Goodwill and acquired intangible
   assets, net                                    72,814           211,452
  Deposits and other assets                       12,602             3,726

              Total assets                      $794,701         1,015,748



                   Liabilities and Stockholders' Equity

  Current liabilities:
    Accounts payable                             $22,874            18,898
    Accrued payroll and related
     liabilities                                  33,571            29,704
    Other accrued expenses                        40,327            45,415
    Deferred revenue                              43,639            52,808

              Total current liabilities          140,411           146,825

  Long-term deferred revenue                       2,874            47,898
  Other long-term liabilities                      2,035             7,789

              Total liabilities                  145,320           202,512

  Stockholders' equity                           649,381           813,236

              Total liabilities and
               stockholders' equity             $794,701         1,015,748




                            NAVTEQ CORPORATION
             Condensed Consolidated Statements of Cash Flows
                              (In thousands)

                                                       Quarter Ended
                                                April 2,           April 1,
                                                    2006              2007
                                                        (Unaudited)
  Cash flows from operating activities:
    Net income                                   $16,184            30,249
    Adjustments to reconcile net income
     to net cash provided by operating
     activities:
        Depreciation and amortization              6,960             9,108
        Deferred income taxes                      4,843               470
        Stock compensation expense                 4,016             4,329
        Cumulative effect of change in
         accounting principle                       (506)               --
        Provision for doubtful receivables         1,090               575
        Noncash other                                377                 3
        Changes in operating assets and
         liabilities, net of effects of
          acquisitions                           (18,553)           34,323

            Net cash provided by
             operating activities                 14,411            79,057

  Cash flows from investing activities:
    Acquisition of property and equipment         (2,188)           (6,602)
    Capitalized software development costs        (3,655)           (5,175)
    Net purchases of marketable securities       (42,074)          (33,687)
    Payments for acquisitions, net of
     cash acquired                                (4,996)          (44,369)
    Note receivable                                 (200)               --

            Net cash used in investing
             activities                          (53,113)          (89,833)

  Cash flows from financing activities:
    Issuance of common stock and other
     equity transactions                           4,060             2,233

            Net cash provided by
             financing activities                  4,060             2,233

  Effect of exchange rate changes on cash            429               840

            Net increase in cash and cash
             equivalents                         (34,213)           (7,703)

  Cash and cash equivalents at beginning
   of period                                      85,070           122,335

  Cash and cash equivalents at end of
   period                                        $50,857           114,632


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DATASOURCE: NAVTEQ



CONTACT:  Editorial, Jennifer Schuh of NAVTEQ, [phone],

; or Bob Richter for NAVTEQ, [phone],

; or Investor Relations, Thomas R. Fox of NAVTEQ,

[phone], 



Web site:  http://www.navteq.com/ 

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