UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

ý                                  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

                For the quarterly period ended March 27, 2005

OR

o                                  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

Commission File Number 0-21323

 

NAVTEQ CORPORATION

(Exact name of registrant as specified in its charter)

 

 

 

 

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ý  No o

 

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).

Yes o  No ý

 

 

 

References in this Quarterly Report on Form 10-Q to “NAVTEQ,” “the Company,” “we,” “us,” and “our” refer to NAVTEQ Corporation and its subsidiaries.

This quarterly report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are not historical facts but rather are based on current expectations, estimates and projections about our industry, our beliefs and our assumptions. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “may,” “will,” “should” and “estimates,” and variations of these words and similar expressions, are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control, are difficult to predict and could cause actual results to differ materially from those expressed, implied or forecast in the forward-looking statements. In addition, the forward-looking events discussed in this quarterly report might not occur. These risks and uncertainties include, among others, those described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2004, as amended. Readers are cautioned not to place undue reliance on these forward-looking statements. Readers should read this quarterly report, and the documents that we refer to in this quarterly report and have filed as exhibits to this quarterly report, with the understanding that actual future results and events may be materially different from what we currently expect.

 

The forward-looking statements included in this quarterly report reflect our views and assumptions only as of the date of this quarterly report. Except as required by law, we undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

 

“NAVTEQ” is a trademark of NAVTEQ Corporation.

 

 

PART I

FINANCIAL INFORMATION

 

Item 1.    Financial Statements

 

NAVTEQ CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands, except per share amounts)

 

		December 31, 2004			March 27, 2005
					(Unaudited)
Assets
Current assets:
Cash and cash equivalents		$	30,101		26,021
Short-term marketable securities		45,650			40,074
Accounts receivable, net of allowance for doubtful accounts of $3,571 and $4,295 in 2004 and 2005, respectively		56,582			76,329
Deferred income taxes		50,696			53,510
Prepaid expenses and other current assets		8,348			9,867
Total current assets		191,377			205,801
Property and equipment, net		18,220			17,767
Capitalized software development costs, net		26,243			26,307
Long-term deferred income taxes, net		92,069			82,591
Long-term marketable securities		27,280			40,574
Deposits and other assets		9,519			10,644
Total assets		$	364,708		383,684
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable		$	13,962		13,327
Accrued payroll and related liabilities		28,054			24,351
Other accrued expenses		20,609			20,548
Deferred revenue		31,165			32,853
Total current liabilities		93,790			91,079
Fair value of foreign currency derivative		21,616			15,405
Long-term deferred revenue		13,342			14,000
Other long-term liabilities		3,142			2,714
Total liabilities		131,890			123,918
Stockholders’ equity:
Common stock, $0.001 par value; 400,000 shares authorized; 87,741 and 89,589 shares issued and outstanding in 2004 and 2005, respectively		88			90
Additional paid-in capital		741,448			753,880
Deferred compensation expense		(12,403		)	(15,318	)
Accumulated other comprehensive loss:
Cumulative translation adjustment		(28,503		)	(26,907	)
Unrealized holding loss on available-for-sale marketable securities, net of tax		(98		)	(330	)
Total accumulated other comprehensive loss		(28,601		)	(27,237	)
Accumulated deficit		(467,714		)	(450,929	)
Total stockholders’ equity		232,818			260,486
Total liabilities and stockholders’ equity		$	364,708		383,684

 

See accompanying notes to condensed consolidated financial statements.

 

2

 

NAVTEQ CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Income

(In thousands, except per share data)

(Unaudited)

 

		Quarter Ended
		March 28, 2004			March 27, 2005
Net revenue		$	79,465		104,697
Operating costs and expenses:
Database creation and distribution costs		40,435			47,953
Selling, general and administrative expenses		23,096			31,913
Total operating costs and expenses		63,531			79,866
Operating income		15,934			24,831
Other income (expense):
Interest income		143			649
Interest expense		(1		)	(3	)
Foreign currency loss		(329		)	(73	)
Other income (expense)		(18		)	28
Income before income taxes		15,729			25,432
Income tax expense		6,010			8,647
Net income		$	9,719		16,785
Earnings per share of common stock:
Basic		$	0.12		0.19
Diluted		$	0.11		0.18