NAVTEQ Reports Record Second Quarter Revenue and Operating Income

CHICAGO, July 31 /PRNewswire-FirstCall/ -- NAVTEQ Corporation (NYSE: NVT) , a leading global provider of digital map data for vehicle navigation and location-based solutions, today reported record second quarter revenue and operating income for the quarter ended July 1, 2007.

Revenue in the quarter rose 49% over the second quarter of 2006 to $202.3 million. Operating income was $54.0 million, compared to $33.1 million in last year's second quarter. Net income was $40.9 million, compared to $23.8 million in the prior year's second quarter. Earnings per diluted share were $0.41, compared to $0.25 in the second quarter of 2006.

For the first six months of 2007, revenue was $362.3 million, which represented growth of 40% over the first six months of 2006. Year-to-date operating income was $92.4 million, compared to $53.8 million for the same period in 2006. First half net income was $71.1 million, compared to $39.9 million for the same period in 2006. Year-to-date diluted earnings per share were $0.72, compared to $0.42 for the first six months of 2006.

"Our exceptional second quarter results and strong first half performance give us great momentum as we enter the second half of the year," said Judson Green, President and Chief Executive Officer of NAVTEQ. "We are particularly excited by the surging growth we have seen in maps for portable devices and the relative stability of our automotive business despite unfavorable car sales trends in our core geographies."

"First half expenses were lighter than we originally anticipated due to adjustments we made to our database investment plan and lower than expected costs in our distribution business," Mr. Green continued. "We expect the second half of the year will be an important investment period for the company as we work toward completion of the projects and initiatives in our annual operating plan."

Revenue from NAVTEQ's Europe, Middle East & Africa (EMEA) operations totaled $117.6 million in the quarter, up 39% from $84.7 million in the second quarter of 2006. The average U.S. dollar/euro exchange rate in the second quarter was $1.35, compared to $1.26 in the comparable period last year. Americas revenue was $81.8 million in the quarter, a 64% increase over the $49.9 million posted in the second quarter of 2006. Asia Pacific revenue, which is derived from the company's Korean subsidiary, was $2.8 million.

Cash and marketable securities totaled $390.1 million at July 1, 2007. Net cash provided by operating activities for the first six months of 2007 was $153.0 million.

Business Outlook

The following forward-looking statements reflect NAVTEQ management's expectations as of July 31, 2007. Management is revising its full-year outlook primarily as a result of the company's strong first half performance and better-than-expected growth trends in maps for portable devices. For the fiscal year 2007, NAVTEQ expects revenue of $780 million to $795 million and earnings per diluted share of $1.45 to $1.50. These ranges assume an effective worldwide tax rate of approximately 29%, an average U.S. dollar/euro exchange rate of $1.35, and average diluted shares outstanding of approximately 99.6 million on a full year basis.

Earnings Call Information

The conference call will take place on Tuesday, July 31, 2007 at 5:00 p.m. ET and be available via webcast at http://investor.navteq.com/ or by calling 866-831-6247 (North America) 617-213-8856 (international) with passcode 71074582.

An on-demand replay of the conference call will be available at the website above for thirty days following the call. The company will also provide a replay of the conference call at 888-286-8010 (North America) 617-801-6888 (international) with passcode 98949086. The telephone replay will be accessible for one week following the call.

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 over 3,000 employees located in 168 offices in 30 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. Such statements may include, but are not limited to, planned expenditures and expectations of future financial performance and operating results. 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 each of the Company's Annual Report on Form 10-K for the year ended December 31, 2006 and the Company's Quarterly Report on Form 10-Q for the quarter ended April 1, 2007, 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.